In its suit filed Friday is U.S. District Court in Reno, lawyers argue that Fernley is receiving substantially less money under the so-called “C-tax” distribution than other incorporated cities of similar size.
It says in the last fiscal year, Fernley received a tax distribution of $143,000, while the city of Elko received about $11 million.
In Clark County, the city of Boulder City received nearly $8 million, and Mesquite received $7 million in that same year.
C-tax distributions are based on a 1997 formula. Located in Lyon County, Fernley incorporated in 2001, but the lawsuit says tax distributions have not kept pace with its population growth.