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RALEIGH (AP) — A group opposing state incentives for corporations has told the N.C. Court of Appeals the taxpayers it represents should be able to challenge tax breaks used to lure Google to Caldwell County.

The News & Observer of Raleigh reported today that the N.C. Institute for Constitutional Law argued before a three-judge panel Monday, hoping to overturn a lower court ruling that the three taxpayers don't have the right to challenge the law.

"How are people going to challenge the acts of government that they feel are unconstitutional if, as taxpayers, the courthouse door is shut?" argued Bob Orr, the institute's executive director.

Lawyers for Google and the state say the taxpayers failed to show they were discriminated against and urged the judges to uphold the lower court ruling.

The taxpayers' complaint that Google's tax breaks could lead to higher taxes for individuals down the road is "too vague" to qualify, argued Burley Mitchell, a lawyer for Google. Mitchell also contended that the tax breaks Google received are no different from a laundry list of tax breaks the state doles out to farmers, manufacturers and others.

Lawmakers approved exemptions from the state's retail sales and use tax, worth an estimated $90 million over 30 years in exchange for Google building an Internet data center in Lenoir, creating up to 210 jobs.

The law hasn't changed since the taxpayers sued last year, but the politics have because computer maker Dell decided earlier this month to close its manufacturing plant in Forsyth County and lay off more than 900 workers.

As a result, Dell is foregoing or paying back most of the $280 million in state and local incentives.

The state Supreme Court dismissed the N.C. Institute for Constitutional Law's earlier lawsuit challenging Dell's incentives.

The arguments heard Monday didn't focus on the merits of the case. The taxpayers won't be able to argue the merits unless the lower court's dismissal is overturned. The appeals court may not issue its decision for months.