Investment tax wording on ballot spurs suit

The city is suing the state over how it thinks the heading of a proposed constitutional amendment should appear on the ballot for November’s general elections.

The proposed amendment would give the state Legislature the authority to establish a surcharge on investment real estate to fund public education.

The wording of the proposed amendment was established by legislation state lawmakers approved earlier this year. The ballots for the general elections are not yet printed. The city says in its lawsuit, however, that a draft ballot contains the heading, “CON AMEND: Relating to Public Education and Investment Property.”

The city says the heading is highly misleading because it fails to mention that a tax surcharge on investment real property will have a “highly deleterious effect” on the city’s ability to raise revenue for city services and infrastructure.

City officials did not respond to questions regarding the draft ballot and how they think the heading should read.

When state lawmakers were considering the proposal, the only city official to submit testimony was Steven Takara, the city’s Real Property Assessment Division administrator. Takara said the proposal encroaches into the city’s only permanent taxing authority.

The lawsuit names as defendants Lt. Gov. Douglas Chin, state Elections Commission Chairman F.M. Scotty Anderson and Chief Election Officer Scott Nago.

Nago said he received the lawsuit Monday but that he couldn’t comment on pending litigation.