Carson City, Nev., voters to decide whether to adopt local diesel tax

Voters in Nevada’s capital city will decide next month whether to continue collecting a local diesel tax to aid transportation purposes.

In 2020, the Carson City Board of Supervisors acted to approve an ordinance authorizing the collection of a diesel tax. Since then, diesel purchases in the city have included a nickel per-gallon tax.

The tax has raised about $500,000 annually – up from the estimated $400,000 yearly.

A sunset is included in the ordinance. As a result, voters must approve an extension of the tax to continue collection beyond Dec. 31.

As a result, the Nov. 8 ballot in Carson City will include a question on renewing the nickel tax to benefit roads and truck parking.

State authorization

A 2019 state law authorizes county commissions in counties with fewer than 100,000 people to add a tax of up to 5 cents per gallon on diesel purchases. Authorization is also included for certain cities.

Red diesel used for mining and agriculture is exempt from the tax.

The 3-year-old law enables 15 of the state’s 17 counties to charge more at the pump. The other two counties – Clark and Washoe – already were permitted to collect extra tax on diesel.

Seven counties have since adopted the nickel tax on diesel: Churchill, Humboldt, Lyon, Mineral, Pershing, Storey, and White Pine.

All counties in the state can charge a nickel tax on gas.

County commissions first must pass an ordinance with two-thirds majority to implement the extra tax on diesel. Another option is for a majority of voters to approve a question during a general election.

Additional diesel revenue raised in rural counties is required to be used for local road construction and maintenance. A portion of tax collections (up to 10%) is routed to the Nevada Department of Transportation. The affected revenue must be used to construct, maintain or repair truck parking in locales collecting the tax.

Nye County question nixed

One county that does not currently collect the nickel tax on diesel was slated to ask voters next month whether to implement the tax.

In September 2021, the Nye County Commission approved allowing voters in the locale directly northwest of Las Vegas to decide this fall on the local diesel tax.

The Public Works Department is responsible for submitting the question for inclusion on the ballot. The department, however, failed to submit the question prior to the July 1 deadline for inclusion on the fall ballot.

As a result, the issue must wait until at least 2024 for voter consideration. The other option is for the county commission to approve the tax on its own.

If ultimately enacted, the local diesel tax is estimated to raise $425,000 annually. LL

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