Business tax payment requirement upheld | NevadaAppeal.com

Business tax payment requirement upheld

Appeal Capitol Bureau

The Nevada Supreme Court upheld a state law Thursday that requires a business to either pay or sign an agreement to pay a tax debt before that business can appeal that debt to district court.

The law is designed to ensure the company owing the debt will pay up if they lose in court.

The case involved Silver State Electric Supply, which was hit with a $200,000 tax bill in June 2001. A hearing officer upheld the ruling as did the Nevada Tax Commission.

Silver State then petitioned Carson District Judge Mike Griffin for judicial review of the decision, but the Tax Department moved to dismiss because the company never put up the money or signed a written agreement to do so if they lost.

Silver State argued the regulation implementing the law exceeds the scope of the law and violates the company’s right to equal protection.

The district court disagreed, finding the law and the regulation implementing it valid because they further a legitimate state interest.

“NRS 360.395 protects the state’s legitimate interest in securing the payment of taxes,” the court wrote. “As these taxes fund public services, the payment requirement rationally relates to furthering the state’s ability to do so.”