Clark County, home to Las Vegas, will begin indexing state fuel taxes Jan. 1. For Clark County purchases, that could add 3 cents to 5 cents a gallon to the state’s 27.81-cent-a-gallon diesel tax in 2014 and as much as 9 cents to 15 cents by 2016.
County commissioners approved the transportation funding plan Sept. 3 after state lawmakers agreed to let the county index. After three years of indexing, voters will cast ballots in 2016 on whether to continue.
Commissioners said indexing would produce about $700 million a year in much-needed road revenue and add about 3 cents a gallon per year to the diesel tax and the 23.81-cent gasoline tax.
However, Paul Enos, chief executive of the Nevada Motor Transport Association, said the indexing, based on construction costs, will probably cost fuel buyers about 5 cents a year.
Washoe, the second-most-populous county and home to Reno, started indexing in 2009. That’s adding about 5 cents a year to the fuel tax, Enos said.
Interstate truckers persuaded the Clark County commissioners to allow them to apply for refunds from the county based on their International Fuel Tax Agreement payments for the diesel they buy in the county but do not use in neighboring states, Enos said.
The rebates at the local level are necessary because IFTA has no refund mechanism for local fuel taxes, Enos said.
