Summary of Clark County Fuel Tax Indexing Extension
The Clark County Commission voted to extend inflation adjustments (indexing) to the local fuel tax for an additional decade, ensuring these adjustments remain in place until at least 2036, when voters will have the opportunity to decide on their continuation.
Background and Impact
- The fuel revenue index, implemented in 2014, adds an inflation-adjusted amount to the fuel tax—currently 23 cents per gallon—which has generated approximately $1 billion.
- These funds have supported over 700 roadway infrastructure projects in Southern Nevada.
- The indexing mechanism keeps transportation funding aligned with rising costs of materials and labor.
Legislative and Public Support
- Assembly Bill 530, signed by Governor Joe Lombardo, permitted the extension.
- The indexing was originally set to expire in 2026, following legislative approval in 2013 and voter endorsement in 2016.
- Over 30 community leaders and officials, including Las Vegas Mayor Shelley Berkley, testified in favor of the extension.
Dissent and Concerns
- Commissioner April Becker was the sole dissenting vote, arguing that voters should have had a direct say in the extension, as was initially required.
- Becker acknowledged the importance of infrastructure and job creation but expressed concern that the tax disproportionately affects lower-income residents who rely on gasoline to commute.
Tax Structure and Revenue
- Current gasoline tax per gallon: 78.2 cents (federal: 18.4, state: 24.1, Clark County: 9.5, RTC: 26.2).
- Revenue sources for road infrastructure include a flat fuel tax, a portion of sales tax, and the indexed fuel tax.
- The $1 billion raised via indexing over the past decade has enabled the RTC to leverage about $3 billion in total project funding through bonds and federal grants.
Financial Consequences of the Extension
- Without the extension, annual roadway funding was projected to fall to $100 million by 2030, compared to over $300 million with the extension.
- In fiscal year 2025, the indexed tax was expected to generate $160 million, accounting for roughly 14 percent of the RTC’s annual budget.
Commissioners’ Views
- Supporters argue the tax is fair because it is paid by road users for road improvements.
- Commissioner Tick Segerblom called it “a perfect tax” since it directly links usage to funding, while Commissioner Justin Jones highlighted its role in securing competitive federal grants.
- The extension passed with a 6-1 vote; only Becker voted no.
Looking Ahead
- The inflation-adjusted fuel tax will remain through 2036, when Clark County voters will once again decide its future.