A Reno-area county adopts local diesel tax

Commissioners in Churchill County, Nev., have adopted a plan to collect a nickel on each gallon of diesel sold in the county.

Officials in the county located east of Reno have said that more money is needed because the cost to construct and maintain roads has steadily increased through the years while revenues received from local gas tax collection has dipped about 6.5% since 2004. There has been no local tax collection on diesel fuel sales.

“This situation has made it increasingly difficult to make the necessary repairs and improvements that are needed,” County Manager Jim Barbee wrote to local business owners.

State authorization

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

The law enables 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 tax on diesel. All other counties in the state can charge a nickel tax on gas.

A portion of diesel tax collections (up to 10%) in rural counties is routed to the Nevada Department of Transportation. The amount sent to the state DOT must be used to construct, maintain or repair truck parking in locales collecting the tax.

Churchill County

The 5-cent diesel tax approved by Churchill County commissioners is estimated to raise about $299,000 yearly.

“This will include doing more resurfacing of existing roads and repaving those roads that are beyond repair,” Barbee said.

The diesel tax is scheduled to go into effect on Feb. 1.

Elsewhere

The first locale in the state to adopt the 5-cent diesel tax was neighboring Lyon County. Tax collection began last summer.

The county estimates the tax will raise about $2.5 million annually.

The Board of Supervisors in the state’s capital city also acted to approve an ordinance authorizing collection of the tax. LL