A.B. 530
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ASSEMBLY BILL NO. 530–COMMITTEE
ON GROWTH AND INFRASTRUCTURE
MARCH 24, 2025
____________
Referred to Committee on Growth and Infrastructure
SUMMARY—Revises provisions relating to the imposition by
certain counties of additional taxes on fuels for
motor vehicles. (BDR 32-783)
FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
Effect on the State: No.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to taxation; revising provisions governing the
effectuation of additional annual increases in certain taxes
imposed on fuels for motor vehicles in certain larger
counties; and providing other matters properly relating
thereto.
Legislative Counsel’s Digest:
Existing law authorizes counties to impose certain taxes on motor vehicle fuels 1
and special fuels used in motor vehicles. (Chapter 373 of NRS) Existing law 2
authorizes the board of county commissioners of a county whose population is 3
700,000 or more (currently only Clark County) to impose, upon approval by a two-4
third majority of the members of the board, additional taxes on motor vehicle fuel 5
and various special fuels used in motor vehicles and to provide for annual increases 6
in those taxes based on a certain measure of increases in the cost of highway 7
and street construction. Existing law provides that, for the period beginning on 8
January 1, 2027, additional annual increases in these taxes may not be effectuated 9
unless a majority of the voters in the county at the general election in November 10
2026 authorize the board of county commissioners to continue to provide for the 11
annual increases. (NRS 373.0663) 12
Instead of requiring the approval of a majority of the voters in the county to 13
continue to provide for the annual increases on and after January 1, 2027, this bill 14
authorizes the continued imposition of additional increases in these taxes if the 15
board of county commissioners, on or before December 31, 2026, adopts an 16
ordinance approved by a two-thirds majority of the board authorizing the 17
effectuation of such annual increases. This bill provides that, if the board of county 18
commissioners does not adopt such an ordinance on or before December 31, 2026, 19
the board is prohibited from imposing any additional annual increases in these 20
taxes. This bill also provides that, for the period beginning on January 1, 2037, 21
additional annual increases in these taxes may not be effectuated unless a majority 22
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of the voters in the county at the general election in November 2036 authorize the 23
board of county commissioners to continue to provide for the annual increases. 24
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 373.0663 is hereby amended to read as 1
follows: 2
373.0663 1. Except as otherwise provided in this section, in a 3
county whose population is 700,000 or more and in which a 4
commission has been created and a tax is imposed pursuant to 5
NRS 373.030: 6
(a) The board may by ordinance impose: 7
(1) An excise tax on each gallon of motor vehicle fuel, 8
except aviation fuel, sold in the county in an amount equal to the 9
product obtained by multiplying 3.6 cents per gallon by the lesser of 10
the applicable percentage or the adjusted average highway and street 11
construction inflation index for the fiscal year in which the 12
ordinance becomes effective; and 13
(2) Except as otherwise provided in subsection 5, an annual 14
increase in the tax imposed pursuant to subparagraph (1), on the first 15
day of each fiscal year following the fiscal year in which that tax 16
becomes effective, in the amount determined by adding 3.6 cents 17
per gallon to the amount of the tax imposed pursuant to 18
subparagraph (1) during the immediately preceding fiscal year, then 19
multiplying that sum by the lesser of the applicable percentage or 20
the adjusted average highway and street construction inflation index 21
for the fiscal year in which the increase becomes effective. 22
(b) The board may by ordinance impose: 23
(1) An excise tax on each gallon of motor vehicle fuel, 24
except aviation fuel, sold in the county in an amount equal to the 25
product obtained by multiplying 1.75 cents per gallon by the lesser 26
of the applicable percentage or the adjusted average highway and 27
street construction inflation index for the fiscal year in which the 28
ordinance becomes effective; and 29
(2) Except as otherwise provided in subsection 5, an annual 30
increase in the tax imposed pursuant to subparagraph (1), on the first 31
day of each fiscal year following the fiscal year in which that tax 32
becomes effective, in the amount determined by adding 1.75 cents 33
per gallon to the amount of the tax imposed pursuant to 34
subparagraph (1) during the immediately preceding fiscal year, then 35
multiplying that sum by the lesser of the applicable percentage or 36
the adjusted average highway and street construction inflation index 37
for the fiscal year in which the increase becomes effective. 38
(c) The board may by ordinance impose: 39
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(1) An excise tax on each gallon of motor vehicle fuel, 1
except aviation fuel, sold in the county in an amount equal to the 2
product obtained by multiplying 1 cent per gallon by the lesser of 3
the applicable percentage or the adjusted average highway and street 4
construction inflation index for the fiscal year in which the 5
ordinance becomes effective; and 6
(2) Except as otherwise provided in subsection 5, an annual 7
increase in the tax imposed pursuant to subparagraph (1), on the first 8
day of each fiscal year following the fiscal year in which that tax 9
becomes effective, in the amount determined by adding 1 cent per 10
gallon to the amount of the tax imposed pursuant to subparagraph 11
(1) during the immediately preceding fiscal year, then multiplying 12
that sum by the lesser of the applicable percentage or the adjusted 13
average highway and street construction inflation index for the fiscal 14
year in which the increase becomes effective. 15
(d) The board may by ordinance impose: 16
(1) An excise tax on each gallon of motor vehicle fuel, 17
except aviation fuel, sold in the county in an amount equal to the 18
product obtained by multiplying 9 cents per gallon by the lesser of 19
the applicable percentage or the adjusted average highway and street 20
construction inflation index for the fiscal year in which the 21
ordinance becomes effective; and 22
(2) Except as otherwise provided in subsection 5, an annual 23
increase in the tax imposed pursuant to subparagraph (1), on the first 24
day of each fiscal year following the fiscal year in which that tax 25
becomes effective, in the amount determined by adding 9 cents per 26
gallon to the amount of the tax imposed pursuant to subparagraph 27
(1) during the immediately preceding fiscal year, then multiplying 28
that sum by the lesser of the applicable percentage or the adjusted 29
average highway and street construction inflation index for the fiscal 30
year in which the increase becomes effective. 31
(e) The board may by ordinance impose: 32
(1) An excise tax on each gallon of motor vehicle fuel, 33
except aviation fuel, sold in the county in an amount equal to the 34
product obtained by multiplying 18.455 cents per gallon by the 35
lesser of the applicable percentage or the adjusted average highway 36
and street construction inflation index for the fiscal year in which 37
the ordinance becomes effective; and 38
(2) Except as otherwise provided in subsection 5, an annual 39
increase in the tax imposed pursuant to subparagraph (1), on the first 40
day of each fiscal year following the fiscal year in which that tax 41
becomes effective, in the amount determined by adding 18.455 cents 42
per gallon to the amount of the tax imposed pursuant to 43
subparagraph (1) during the immediately preceding fiscal year, then 44
multiplying that sum by the lesser of the applicable percentage or 45
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the adjusted average highway and street construction inflation index 1
for the fiscal year in which the increase becomes effective. 2
(f) The board may by ordinance impose: 3
(1) An excise tax on each gallon of motor vehicle fuel, 4
except aviation fuel, sold in the county in an amount equal to the 5
product obtained by multiplying 18.4 cents per gallon by the lesser 6
of the applicable percentage or the adjusted average highway and 7
street construction inflation index for the fiscal year in which the 8
ordinance becomes effective; and 9
(2) Except as otherwise provided in subsection 5, an annual 10
increase in the tax imposed pursuant to subparagraph (1), on the first 11
day of each fiscal year following the fiscal year in which that tax 12
becomes effective, in the amount determined by adding 18.4 cents 13
per gallon to the amount of the tax imposed pursuant to 14
subparagraph (1) during the immediately preceding fiscal year, then 15
multiplying that sum by the lesser of the applicable percentage or 16
the adjusted average highway and street construction inflation index 17
for the fiscal year in which the increase becomes effective. 18
(g) The board may by ordinance impose: 19
(1) An excise tax on each gallon of special fuel that consists 20
of an emulsion of water-phased hydrocarbon fuel sold in the county 21
in an amount equal to the product obtained by multiplying 19 cents 22
per gallon by the lesser of the applicable percentage or the adjusted 23
average highway and street construction inflation index for the fiscal 24
year in which the ordinance becomes effective; and 25
(2) Except as otherwise provided in subsection 5, an annual 26
increase in the tax imposed pursuant to subparagraph (1), on the first 27
day of each fiscal year following the fiscal year in which that tax 28
becomes effective, in the amount determined by adding 19 cents per 29
gallon to the amount of the tax imposed pursuant to subparagraph 30
(1) during the immediately preceding fiscal year, then multiplying 31
that sum by the lesser of the applicable percentage or the adjusted 32
average highway and street construction inflation index for the fiscal 33
year in which the increase becomes effective. 34
(h) The board may by ordinance impose: 35
(1) An excise tax on each gallon of special fuel that consists 36
of liquefied petroleum gas sold in the county in an amount equal to 37
the product obtained by multiplying 22 cents per gallon by the lesser 38
of the applicable percentage or the adjusted average highway and 39
street construction inflation index for the fiscal year in which the 40
ordinance becomes effective; and 41
(2) Except as otherwise provided in subsection 5, an annual 42
increase in the tax imposed pursuant to subparagraph (1), on the first 43
day of each fiscal year following the fiscal year in which that tax 44
becomes effective, in the amount determined by adding 22 cents per 45
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gallon to the amount of the tax imposed pursuant to subparagraph 1
(1) during the immediately preceding fiscal year, then multiplying 2
that sum by the lesser of the applicable percentage or the adjusted 3
average highway and street construction inflation index for the fiscal 4
year in which the increase becomes effective. 5
(i) The board may by ordinance impose: 6
(1) An excise tax on each gallon of special fuel that consists 7
of compressed natural gas sold in the county in an amount equal to 8
the product obtained by multiplying 21 cents per gallon by the lesser 9
of the applicable percentage or the adjusted average highway and 10
street construction inflation index for the fiscal year in which the 11
ordinance becomes effective; and 12
(2) Except as otherwise provided in subsection 5, an annual 13
increase in the tax imposed pursuant to subparagraph (1), on the first 14
day of each fiscal year following the fiscal year in which that tax 15
becomes effective, in the amount determined by adding 21 cents per 16
gallon to the amount of the tax imposed pursuant to subparagraph 17
(1) during the immediately preceding fiscal year, then multiplying 18
that sum by the lesser of the applicable percentage or the adjusted 19
average highway and street construction inflation index for the fiscal 20
year in which the increase becomes effective. 21
(j) The board may by ordinance impose: 22
(1) An excise tax on each gallon of special fuel sold in the 23
county, other than any special fuel described in paragraph (g), (h) or 24
(i), in an amount equal to the product obtained by multiplying 27.75 25
cents per gallon by the lesser of the applicable percentage or the 26
adjusted average highway and street construction inflation index for 27
the fiscal year in which the ordinance becomes effective; and 28
(2) Except as otherwise provided in subsection 5, an annual 29
increase in the tax imposed pursuant to subparagraph (1), on the first 30
day of each fiscal year following the fiscal year in which that tax 31
becomes effective, in the amount determined by adding 27.75 cents 32
per gallon to the amount of the tax imposed pursuant to 33
subparagraph (1) during the immediately preceding fiscal year, then 34
multiplying that sum by the lesser of the applicable percentage or 35
the adjusted average highway and street construction inflation index 36
for the fiscal year in which the increase becomes effective. 37
(k) The board may by ordinance impose: 38
(1) An excise tax on each gallon of special fuel that consists 39
of liquefied petroleum gas sold in the county in an amount equal to 40
the product obtained by multiplying 18.3 cents per gallon by the 41
lesser of the applicable percentage or the adjusted average highway 42
and street construction inflation index for the fiscal year in which 43
the ordinance becomes effective; and 44
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(2) Except as otherwise provided in subsection 5, an annual 1
increase in the tax imposed pursuant to subparagraph (1), on the first 2
day of each fiscal year following the fiscal year in which that tax 3
becomes effective, in the amount determined by adding 18.3 cents 4
per gallon to the amount of the tax imposed pursuant to 5
subparagraph (1) during the immediately preceding fiscal year, then 6
multiplying that sum by the lesser of the applicable percentage or 7
the adjusted average highway and street construction inflation index 8
for the fiscal year in which the increase becomes effective. 9
(l) The board may by ordinance impose: 10
(1) An excise tax on each gallon of special fuel that consists 11
of compressed natural gas sold in the county in an amount equal to 12
the product obtained by multiplying 18.3 cents per gallon by the 13
lesser of the applicable percentage or the adjusted average highway 14
and street construction inflation index for the fiscal year in which 15
the ordinance becomes effective; and 16
(2) Except as otherwise provided in subsection 5, an annual 17
increase in the tax imposed pursuant to subparagraph (1), on the first 18
day of each fiscal year following the fiscal year in which that tax 19
becomes effective, in the amount determined by adding 18.3 cents 20
per gallon to the amount of the tax imposed pursuant to 21
subparagraph (1) during the immediately preceding fiscal year, then 22
multiplying that sum by the lesser of the applicable percentage or 23
the adjusted average highway and street construction inflation index 24
for the fiscal year in which the increase becomes effective. 25
(m) The board may by ordinance impose: 26
(1) An excise tax on each gallon of special fuel sold in the 27
county, other than any special fuel described in paragraph (k) or (l), 28
which is taxed by the Federal Government at a rate per gallon or 29
gallon equivalent of 24.4 cents or more, in an amount equal to the 30
product obtained by multiplying 24.4 cents per gallon by the lesser 31
of the applicable percentage or the adjusted average highway and 32
street construction inflation index for the fiscal year in which the 33
ordinance becomes effective; and 34
(2) Except as otherwise provided in subsection 5, an annual 35
increase in the tax imposed pursuant to subparagraph (1), on the first 36
day of each fiscal year following the fiscal year in which that tax 37
becomes effective, in the amount determined by adding 24.4 cents 38
per gallon to the amount of the tax imposed pursuant to 39
subparagraph (1) during the immediately preceding fiscal year, then 40
multiplying that sum by the lesser of the applicable percentage or 41
the adjusted average highway and street construction inflation index 42
for the fiscal year in which the increase becomes effective. 43
2. An ordinance authorized by this section must be approved 44
by a two-thirds majority of the members of the board. If the board 45
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adopts an ordinance authorized by this section, the ordinance must 1
impose all of the taxes authorized by this section. Upon the adoption 2
of such an ordinance, and except as otherwise provided in 3
subsection 5, no further action by the board is necessary to 4
effectuate the annual increases in the taxes imposed by the 5
ordinance. 6
3. If the board adopts an ordinance imposing the taxes 7
authorized by this section, the ordinance: 8
(a) Must be adopted before October 1, 2013; 9
(b) Must become effective on January 1, 2014; and 10
(c) Is not affected by any changes in the population of the 11
county which occur after the adoption of the ordinance. 12
4. The applicable percentage specified by the board for the 13
taxes imposed pursuant to this section must be the same percentage 14
for each tax imposed pursuant to this section. Except as otherwise 15
provided in subsection 5, the board may amend the applicable 16
percentage by ordinance from time to time, but any such amendment 17
must not become effective earlier than 90 days after the date of the 18
adoption of the ordinance amending the applicable percentage. 19
Except as otherwise provided in subsection 4 of NRS 373.120, the 20
applicable percentage must not be amended to reduce the applicable 21
percentage at any time that bonds are outstanding which are secured 22
by the taxes imposed pursuant to this section. 23
5. Upon the adoption of an ordinance authorized by this 24
section: 25
(a) For the period beginning on January 1, 2014, and ending on 26
[December 31, 2016,] March 31, 2026, no further action by the 27
board is necessary to effectuate the annual increases in the taxes 28
imposed by the ordinance. 29
(b) For the period beginning on [January 1, 2017,] April 1, 30
2027, and ending on December 31, [2026,] 2036, the annual 31
increases in the taxes authorized by this section and imposed by the 32
ordinance may not be effectuated unless [a question is placed on the 33
ballot at the general election on November 8, 2016, which asks the 34
voters in the county whether to authorize the board to impose, for 35
the period beginning on January 1, 2017, the increases authorized by 36
this section in the taxes imposed by the ordinance and the question 37
is approved by a majority of the registered voters voting on the 38
question. If the question is approved by a majority of such voters, no 39
further action by the board is necessary to effectuate the annual 40
increases in the taxes authorized by this section and imposed by the 41
ordinance.] , on or before December 31, 2026, the board adopts an 42
ordinance approved by a two-thirds majority of the members of the 43
board authorizing the effectuation of the annual increases. If [the 44
question is not approved by a majority of such voters,] such an 45
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ordinance is not adopted by the board on or before December 31, 1
2026, the board shall not impose any additional annual increases in 2
the taxes authorized by this section and imposed by the ordinance 3
after [November 8, 2016,] December 31, 2026, but any annual 4
increases in such taxes imposed by the ordinance on or before 5
[November 8, 2016,] December 31, 2026, are not affected, 6
amended, reduced or eliminated and must be continued for any 7
period during which bonds are outstanding that are secured by such 8
taxes imposed by the ordinance. If the board adopts an ordinance 9
pursuant to this paragraph, the ordinance is not affected by any 10
changes in the population of the county which occur after the 11
adoption of the ordinance. 12
(c) For the period beginning on January 1, [2027, if the question 13
placed on the ballot pursuant to paragraph (b) is approved by a 14
majority of the registered voters in the county voting on the 15
question,] 2037, the annual increases in the taxes authorized by this 16
section and imposed by the ordinance may be effectuated if 17
a question is placed on the ballot at the general election on 18
November [3, 2026,] 4, 2036, which asks the voters in the county 19
whether to authorize the board to impose, for the period beginning 20
on January 1, [2027,] 2037, the increases authorized by this section 21
in the taxes imposed by the ordinance and the question is approved 22
by a majority of the registered voters voting on the question. If the 23
question is approved at the general election on November [3, 2026,] 24
4, 2036, by a majority of such voters, no further action by the board 25
is necessary to effectuate the annual increases in the taxes 26
authorized by this section and imposed by the ordinance. If the 27
question is not approved by a majority of such voters, the board 28
shall not impose any additional annual increases in the taxes 29
authorized by this section and imposed by the ordinance after 30
November [3, 2026,] 4, 2036, but any annual increases in such taxes 31
imposed by the ordinance on or before November [3, 2026,] 4, 32
2036, are not affected, amended, reduced or eliminated and must be 33
continued for any period during which bonds are outstanding that 34
are secured by such taxes imposed by the ordinance. 35
6. As used in this section: 36
(a) “Adjusted average highway and street construction inflation 37
index” means: 38
(1) For the fiscal year in which an ordinance adopted 39
pursuant to this section becomes effective, the percentage obtained 40
by adding the average highway and street construction inflation 41
index for that fiscal year to: 42
(I) If the average highway and street construction 43
inflation index for the immediately preceding fiscal year is greater 44
than the applicable percentage, the remainder obtained by 45
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subtracting the applicable percentage from the average highway and 1
street construction inflation index for the immediately preceding 2
fiscal year; or 3
(II) If the average highway and street construction 4
inflation index for the immediately preceding fiscal year is less than 5
or equal to the applicable percentage, zero; and 6
(2) For each fiscal year following the fiscal year in which the 7
ordinance becomes effective, the percentage obtained by adding the 8
average highway and street construction inflation index for that 9
fiscal year to: 10
(I) If the adjusted average highway and street construction 11
inflation index for the immediately preceding fiscal year is greater 12
than the applicable percentage, the remainder obtained by 13
subtracting the applicable percentage from the adjusted average 14
highway and street construction inflation index for the immediately 15
preceding fiscal year; or 16
(II) If the adjusted average highway and street 17
construction inflation index for the immediately preceding fiscal 18
year is less than or equal to the applicable percentage, zero. 19
(b) “Applicable percentage” means the lesser of 7.8 percent or 20
the percentage specified by the board in any ordinance imposing a 21
tax pursuant to this section. 22
(c) “Average highway and street construction inflation index” 23
means for a fiscal year the average percentage increase in the 24
highway and street construction inflation index for the 10 calendar 25
years immediately preceding the beginning of that fiscal year. 26
(d) “Highway and street construction inflation index” means: 27
(1) The Producer Price Index for Highway and Street 28
Construction until that Index ceased to be published; and 29
(2) The Producer Price Index for Other Nonresidential 30
Construction thereafter or, if that Index ceases to be published by 31
the United States Department of Labor, the published index that 32
most closely measures inflation in the costs of highway and street 33
construction, as determined by the commission. 34
(e) “Special fuel” has the meaning ascribed to it in 35
NRS 366.060. 36
Sec. 2. This act becomes effective upon passage and approval. 37
H