5Index the Motor Vehicle Fuel Tax ...
... Imposed on the Sale of Motor Vehicle Fuels Statewide, Directing Additional Funds to Local Transportation Infrastructure Programs
Presently, all fuel taxes, except those in Washoe County are flat amounts per gallon, effectively restricting growth in revenue to growth in number of gallons sold, a manner of taxation unresponsive to increases in vehicle fuel economy and the cost of construction.
Estimated Impact | ||
Jobs | Wages & Salaries | Economic Activity |
5,192 | $304,899,484 | $703,831,219 |
In Washoe County, voters approved and the Legislature authorized per-gallon fuel taxes collected be indexed for inflation. The current index is the lesser of 7.8 percent or the Producer Price Index for Highway Construction. As a result, the Washoe County Regional Transportation Commissions benefits from an additional 9.08 cents per gallon to maintain and enhance roads.
To illustrate the impacts of this strategy, if an additional 9 cents per gallon were available to the Regional Transportation of Southern Nevada for road construction today, roughly $400 million in additional bonding capacity could be created for critical transportation infrastructure enhancements during the next three years and upwards of $1.8 billion through 2020. Significantly higher yields are generated when diesel and other fuels indexed and added to the equation.
The mechanism has proven beneficial in Washoe County and should be considered for the balance of the state. This strategy could be effectuated by amending NRS 373.066 to include all counties, and would be expected to have immediate effects on local employment levels.