LAS VEGAS (KTNV) — Gas prices and tax revenue are on the minds of state lawmakers this legislative session. They're looking at a new bill that could impact how much you pay for gas, and whether or not you get a direct say in the matter.
Here's what you need to know
“The more money in my pocket the better," said Mel Gray, a Las Vegas Uber driver.
“It should be up to the public to vote," said John Chavez, a Las Vegas local of 25 years.
Assembly Bill 530 — it's all about the taxes you pay at the pump, but it's also designed to change the voting process you have on a local fuel tax program.
The vote on this tax is historically up to the people in a public vote, but this bill would take your chance to vote on it away and give it to the Clark County Commission. The bill has had two hearings, and the Assembly of Growth and Infrastructure unanimously approved the bill Tuesday.
This pushed the bill to the next step. It has to go to the Assembly floor, then the Senate before it reaches the Gov. Joe Lombardo for his signature.
Assemblymembers Jill Dickman (R-Washoe County) and Danielle Gallant (R-Clark County) both stated they have issues that the vote of the people have been taken away. They both voted 'yes' to get the bill out of committee but are reserving their right to change on the floor.
The bill focuses on the voting process of a specific local fuel tax program.
“To extend the fuel revenue indexing program," said David Swallow, the deputy CEO of the Regional Transportation Commission (RTC) of Southern Nevada.
What is the Fuel Revenue Indexing (FRI) program?
Swallow said it's a program Clark County starting using in 2014 where they base the fuel tax—which you pay on each gallon of gas you pump—on inflation.
“That really reflects more on the cost of construction and we adjust the fuel tax every year based on that rate," Swallow said.
The money made from this program goes to RTC, and they use that money for construction projects across Southern Nevada—with the majority being in our valley.
Swallow said adjusting the fuel tax with the annual impacts of inflation on construction allows them to keep up with increased costs to have the same production. In 2016 the public voted to extend the program another 10 years.
“We’ve seen an average increase of 1.4 cents per gallon per year since we started FRI," Swallow said.
According to RTC data, they make 15.6 cents per gallon of gas pumped in Clark County through the program.
“We’ve generated nearly $1 billion in additional revenue," Swallow said. “So since 2014, we started 702 projects and have completed 501 projects to date.”
This RTC data shows a breakdown of fuel tax revenue in Clark County:
- The total fuel tax is 75 cents per gallon.
- 24.6 cents goes to RTC. (15.6 cents is from the fuel revenue indexing, the rest is from motor vehicle fuel tax.)
- 9 cents goes to the county
- 23 cents goes to the state
- 18.4 cents goes to the federal government.
The Fuel Revenue Indexing is set to stop next year, though, and a vote is needed to continue it.
Swallow said the public has voted whether to approve or deny the fuel tax for decades, but now this bill aims to give the vote to the Clark County Commission instead, and locals aren't happy with that.
“I’d rather it be up to us," Gray said.
“Yeah the public should have a vote if anything," Chavez said.
Whoever votes on the program, a yes vote would mean 10 more years of the Fuel Revenue Indexing. Prices for fuel tax will continue to rise with inflation. Swallow said in the bill, the tax cannot raise more than 4% each year.
If the program is voted down, the 15.6 cent revenue from the program will continue going to RTC and won't be removed, but it won't be able to increase with inflation. Swallow said this will lead to hundreds of millions in lost revenue.
"We're going to go from about $300 million a year to $100 million per year spread throughout all of Clark County," Swallow said.
He told me that would significantly cut the amount of projects they're able to complete in Clark County.
So far, here's the number of project's RTC has completed since 2014
"We're really hitting up the limit of what our bonding capacity is," Swallow said.
He said if the bill passes, and the County Commission gets the vote, he believes they will decide based on what's best for the community and the people in it. He told me since the public has voted to approve this program before, then this could extend their vote and that they would be represented by their elected officials.
I asked him what happens if the will of the people has changed, and the public doesn't want this anymore — does he believe that they have the right to voice that in the vote?
"Absolutely, but what we’re looking for, is all the county commissioners are elected by the people and we expect them to take input from their constituents," Swallow said.
Many locals told me that's not the case, and they just want to see relief at the pump.
“That would be great for everybody, you know especially me, I fill up every day," Gray said.
There are still several more steps needed before a decision is made, but we will continue to bring you the latest developments.