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Tuesday, April 16, 2024

Nevada Raises Diesel Tax

 

The Nevada Senate voted 17-4 to advance a bill to authorize county commissions in counties with fewer than 100,000 people to add a tax of up to 5 cents per gallon on diesel purchases. The bill, SB48, now moves to the House. 

The state’s fuel tax rate is set at 23 cents for gas and 27 cents for diesel.

The bill would enable 15 of the state’s 17 counties to charge more at the pump. The other two counties – Clark and Washoe – already are allowed to collect extra tax on diesel. All other counties in the state can charge a five cent tax on gas.

Additional diesel revenue raised in rural counties would be required to be used for local road construction and maintenance. A portion of tax collections would be allotted to construct, maintain or repair truck parking in counties that sell more than 10 million gallons of diesel annually.

Elko County is identified as an area that would benefit from the provision.

Another provision is included for eligible IFTA carriers to receive a reimbursement of the county tax consumed outside of Nevada.

County commissions would need to pass an ordinance with two-thirds majority to implement the extra tax. Another option would be for a majority of voters to approve a question during a general election.