This tax increase was only levied against the highest paying taxpayers, but in light of the state’s financial problems and reluctance to decrease spending, may soon be imposed on those in the 6 percent and 7 percent brackets.
Increasing taxes, while unpopular, is not illegal, but this law forced about 85,000 taxpayers to pay $63 million in taxes retroactively (i.e., they were back-taxed for about nine months of tax year 2001) resulting in the Coley, et al. vs. N.C. Secretary of Revenue lawsuit, which may be scheduled before Judge Henry Barnette on Thursday, Dec. 4, in the 10th floor courtroom of the Wake County Superior Court in Raleigh.
For more than 135 years, the North Carolina Constitution prohibits retroactive taxation. Article I, Section 16, of the North Carolina Constitution declares, “No law retroactively taxing any sales, purchases or other acts previously done shall be enacted.” This state prohibition against retroactive taxation has long been upheld by the Supreme Court, first in a test case in 1877, and again in 1939.
Interested taxpayers are encouraged to attend to meet and support the taxpayers’ attorney. The same attorney who previously “upheld the Constitution” in both the Bailey/Emory/ Patton government retiree lawsuit in 1998 and the Intangibles tax protestors’ Smith “A” lawsuit in 1999. He later formed a law firm with his son, daughter and son-in-law and together won the nonprotestor intangibles taxpayers Smith/Shaver lawsuit in 2000. It is not about money or politics it is about the state breaking the law! As long as they keep doing it we will continue to take them to court!
Manila G. Shaver
Major General (Retired) USA
West End
