The debate over extending Clark County’s fuel tax, which increases with inflation, is once again a focal point in the Nevada Legislature. The proposal, encapsulated in Assembly Bill 530, seeks to continue the fuel revenue indexing program without requiring another public vote. This program adjusts the fuel tax to match rising material and labor costs, thus ensuring continual funding for transportation projects.
Proponents argue that the indexing is crucial to prevent funding shortfalls for road improvements. Since its inception in 2014, fuel revenue indexing has generated over $1 billion, funding 702 projects, with about 70% completed. The Regional Transportation Commission (RTC) of Southern Nevada reports that if the program is not extended, annual road maintenance funding could be drastically reduced.
The bill has garnered support from various local governments and business associations, emphasizing the importance of maintaining infrastructure and leveraging local funds to secure federal grants. However, it faces opposition from those who view it as a tax increase without voter approval. Critics, including Governor Joe Lombardo, argue that such measures should be decided directly by voters, citing concerns over bypassing public consent.
A similar legislative effort, Senate Bill 451, aims to extend a tax supporting the Metropolitan Police Department, which also requires a legislative supermajority for approval.
The Assembly passed AB 530 with a significant majority, but opposition remains, primarily focused on preserving taxpayer rights and ensuring voter involvement in tax decisions. The bill suggests revisiting the issue with voters in 2036, aiming to balance immediate infrastructure needs with democratic processes.