The Clark County Commission voted to approve an ordinance to index the county’s fuel tax to inflation. The change will raise up to $700 million for needed transportation work.
Truckers licensed under the International Fuel Tax Agreement will get credit for the county fuel tax when traveling out of the state.
Starting Jan. 1, 2014, the ordinance authorizes a 3.24-cent-per-gallon increase in the local 9-cent tax rate for gas and diesel. Additional increases will occur in July 2015 and July 2016.
The tax increase will permit the Regional Transportation Commission of Southern Nevada to issue bonds for 183 regional transportation projects. The projects include the Las Vegas Beltway and construction on Interstate 11, which would eventually link Las Vegas to Phoenix.
“This initiative will improve connectivity and enhance transportation infrastructure in southern Nevada allowing residents, tourists and goods to travel more efficiently into and around Las Vegas,” RTC General Manager Tina Quigley said in a news release.
The tax method in Clark County is not unfamiliar to the state. Washoe County implemented the same funding method in 2009. The tax rate there is about 10 cents more than Clark County.
In fall 2016, Clark County voters will decide whether to continue collecting the tax, which is expected to increase about 3 cents per gallon each year.
Copyright © OOIDA