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- 83rd Session (2025)
Assembly Bill No. 530–Committee
on Growth and Infrastructure
CHAPTER..........
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 larg er
counties; and providing other matters properly relating
thereto.
Legislative Counsel’s Digest:
Existing law authorizes counties to impose certain taxes on motor vehicle fuels
and special fuels used in motor vehicles. (Chapter 373 of NRS) Existing law
authorizes the board of county commissioners of a county whose population is
700,000 or more (currently only Clark County) to impose, upon approval by a two -
thirds majority of the members of the board, additional taxes on motor vehicle fuel
and various special fuels used in motor vehicles and to provide for annual increases
in those taxes based on a certain measure of increases in the cost of highway
and street construction. Existing law provides that, for the period beginning on
January 1, 2027, additional annual increases in these taxes may not be effectuated
unless a majority of the voters in the county at the general election in November
2026 authorize the board of county commissioners to continue to provide for the
annual increases. (NRS 373.0663)
Instead of requiring the approval of a majority of the voters in the county to
continue to provide for the annual increases on and after January 1, 2027, this bill
authorizes the continued imposition of additional increases in these taxes if the
board of count y commissioners, on or before December 31, 2026, adopts an
ordinance approved by a two -thirds majority of the board authorizing the
effectuation of such annual increases. This bill provides that, if the board of county
commissioners does not adopt such an ordinance on or before December 31, 2026,
the board is prohibited from imposing any additional annual increases in these
taxes. This bill also provides that, for the period beginning on January 1, 2037,
additional annual increases in these taxes may not be effectuated unless a majority
of the voters in the county at the general election in November 2036 authorize the
board of county commissioners to continue to provide for the annual increases.
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
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
follows:
373.0663 1. Except as otherwise provided in this section, in a
county whose population is 700,000 or more and in which a
commission has been created and a tax is imposed pursuant to
NRS 373.030:
(a) The board may by ordinance impose:
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(1) An excise tax on each gall on of motor vehicle fuel,
except aviation fuel, sold in the county in an amount equal to the
product obtained by multiplying 3.6 cents per gallon by the lesser of
the applicable percentage or the adjusted average highway and street
construction inflation i ndex for the fiscal year in which the
ordinance becomes effective; and
(2) Except as otherwise provided in subsection 5, an annual
increase in the tax imposed pursuant to subparagraph (1), on the first
day of each fiscal year following the fiscal year in which that tax
becomes effective, in the amount determined by adding 3.6 cents
per gallon to the amount of the tax imposed pursuant to
subparagraph (1) during the immediately preceding fiscal year, then
multiplying that sum by the lesser of the applicable percentage or
the adjusted average highway and street construction inflation index
for the fiscal year in which the increase becomes effective.
(b) The board may by ordinance impose:
(1) An excise tax on each gallon of motor vehicle fuel,
except aviati on fuel, sold in the county in an amount equal to the
product obtained by multiplying 1.75 cents per gallon by the lesser
of the applicable percentage or the adjusted average highway and
street construction inflation index for the fiscal year in which the
ordinance becomes effective; and
(2) Except as otherwise provided in subsection 5, an annual
increase in the tax imposed pursuant to subparagraph (1), on the first
day of each fiscal year following the fiscal year in which that tax
becomes effective, in the amount determined by adding 1.75 cents
per gallon to the amount of the tax imposed pursuant to
subparagraph (1) during the immediately preceding fiscal year, then
multiplying that sum by the lesser of the applicable percentage or
the adjusted average highway and street construction inflation index
for the fiscal year in which the increase becomes effective.
(c) The board may by ordinance impose:
(1) An excise tax on each gallon of motor vehicle fuel,
except aviation fuel, sold in the county in an amo unt equal to the
product obtained by multiplying 1 cent per gallon by the lesser of
the applicable percentage or the adjusted average highway and street
construction inflation index for the fiscal year in which the
ordinance becomes effective; and
(2) Except as otherwise provided in subsection 5, an annual
increase in the tax imposed pursuant to subparagraph (1), on the first
day of each fiscal year following the fiscal year in which that tax
becomes effective, in the amount determined by adding 1 cent pe r
gallon to the amount of the tax imposed pursuant to subparagraph
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(1) during the immediately preceding fiscal year, then multiplying
that sum by the lesser of the applicable percentage or the adjusted
average highway and street construction inflation index for the fiscal
year in which the increase becomes effective.
(d) The board may by ordinance impose:
(1) An excise tax on each gallon of motor vehicle fuel,
except aviation fuel, sold in the county in an amount equal to the
product obtained by multiply ing 9 cents per gallon by the lesser of
the applicable percentage or the adjusted average highway and street
construction inflation index for the fiscal year in which the
ordinance becomes effective; and
(2) Except as otherwise provided in subsection 5, an annual
increase in the tax imposed pursuant to subparagraph (1), on the first
day of each fiscal year following the fiscal year in which that tax
becomes effective, in the amount determined by adding 9 cents per
gallon to the amount of the tax imposed p ursuant to subparagraph
(1) during the immediately preceding fiscal year, then multiplying
that sum by the lesser of the applicable percentage or the adjusted
average highway and street construction inflation index for the fiscal
year in which the increase becomes effective.
(e) The board may by ordinance impose:
(1) An excise tax on each gallon of motor vehicle fuel,
except aviation fuel, sold in the county in an amount equal to the
product obtained by multiplying 18.455 cents per gallon by the
lesser of the applicable percentage or the adjusted average highway
and street construction inflation index for the fiscal year in which
the ordinance becomes effective; and
(2) Except as otherwise provided in subsection 5, an annual
increase in the tax imposed pursuant to subparagraph (1), on the first
day of each fiscal year following the fiscal year in which that tax
becomes effective, in the amount determined by adding 18.455 cents
per gallon to the amount of the tax imposed pursuant to
subparagraph (1) during the immediately preceding fiscal year, then
multiplying that sum by the lesser of the applicable percentage or
the adjusted average highway and street construction inflation index
for the fiscal year in which the increase becomes effective.
(f) The board may by ordinance impose:
(1) An excise tax on each gallon of motor vehicle fuel,
except aviation fuel, sold in the county in an amount equal to the
product obtained by multiplying 18.4 cents per gallon by the lesser
of the applicable percentage or the adjusted average highway and
street construction inflation index for the fiscal year in which the
ordinance becomes effective; and
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(2) Except as otherwise provided in subsection 5, an annual
increase in the tax imposed pursuant to subparagraph (1), on the first
day of each fiscal year following the fiscal year in which that tax
becomes effective, in the amount determined by adding 18.4 cents
per gallon to the amount of the tax imposed pursuant to
subparagraph (1) during the immediately preceding fiscal ye ar, then
multiplying that sum by the lesser of the applicable percentage or
the adjusted average highway and street construction inflation index
for the fiscal year in which the increase becomes effective.
(g) The board may by ordinance impose:
(1) An excise tax on each gallon of special fuel that consists
of an emulsion of water -phased hydrocarbon fuel sold in the county
in an amount equal to the product obtained by multiplying 19 cents
per gallon by the lesser of the applicable percentage or the adjust ed
average highway and street construction inflation index for the fiscal
year in which the ordinance becomes effective; and
(2) Except as otherwise provided in subsection 5, an annual
increase in the tax imposed pursuant to subparagraph (1), on the first
day of each fiscal year following the fiscal year in which that tax
becomes effective, in the amount determined by adding 19 cents per
gallon to the amount of the tax imposed pursuant to subparagraph
(1) during the immediately preceding fiscal year, then multiplying
that sum by the lesser of the applicable percentage or the adjusted
average highway and street construction inflation index for the fiscal
year in which the increase becomes effective.
(h) The board may by ordinance impose:
(1) An excise tax on each gallon of special fuel that consists
of liquefied petroleum gas sold in the county in an amount equal to
the product obtained by multiplying 22 cents per gallon by the lesser
of the applicable percentage or the adjusted average highway and
street construction inflation index for the fiscal year in which the
ordinance becomes effective; and
(2) Except as otherwise provided in subsection 5, an annual
increase in the tax imposed pursuant to subparagraph (1), on the first
day of each fiscal year fol lowing the fiscal year in which that tax
becomes effective, in the amount determined by adding 22 cents per
gallon to the amount of the tax imposed pursuant to subparagraph
(1) during the immediately preceding fiscal year, then multiplying
that sum by the lesser of the applicable percentage or the adjusted
average highway and street construction inflation index for the fiscal
year in which the increase becomes effective.
(i) The board may by ordinance impose:
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(1) An excise tax on each gallon of special f uel that consists
of compressed natural gas sold in the county in an amount equal to
the product obtained by multiplying 21 cents per gallon by the lesser
of the applicable percentage or the adjusted average highway and
street construction inflation index for the fiscal year in which the
ordinance becomes effective; and
(2) Except as otherwise provided in subsection 5, an annual
increase in the tax imposed pursuant to subparagraph (1), on the first
day of each fiscal year following the fiscal year in whic h that tax
becomes effective, in the amount determined by adding 21 cents per
gallon to the amount of the tax imposed pursuant to subparagraph
(1) during the immediately preceding fiscal year, then multiplying
that sum by the lesser of the applicable perce ntage or the adjusted
average highway and street construction inflation index for the fiscal
year in which the increase becomes effective.
(j) The board may by ordinance impose:
(1) An excise tax on each gallon of special fuel sold in the
county, other than any special fuel described in paragraph (g), (h) or
(i), in an amount equal to the product obtained by multiplying 27.75
cents per gallon by the lesser of the applicable percentage or the
adjusted average highway and street construction inflation inde x for
the fiscal year in which the ordinance becomes effective; and
(2) Except as otherwise provided in subsection 5, an annual
increase in the tax imposed pursuant to subparagraph (1), on the first
day of each fiscal year following the fiscal year in wh ich that tax
becomes effective, in the amount determined by adding 27.75 cents
per gallon to the amount of the tax imposed pursuant to
subparagraph (1) during the immediately preceding fiscal year, then
multiplying that sum by the lesser of the applicable percentage or
the adjusted average highway and street construction inflation index
for the fiscal year in which the increase becomes effective.
(k) The board may by ordinance impose:
(1) An excise tax on each gallon of special fuel that consists
of liquefied petroleum gas sold in the county in an amount equal to
the product obtained by multiplying 18.3 cents per gallon by the
lesser of the applicable percentage or the adjusted average highway
and street construction inflation index for the fiscal year in which
the ordinance becomes effective; and
(2) Except as otherwise provided in subsection 5, an annual
increase in the tax imposed pursuant to subparagraph (1), on the first
day of each fiscal year following the fiscal year in which that tax
becomes effective, in the amount determined by adding 18.3 cents
per gallon to the amount of the tax imposed pursuant to
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subparagraph (1) during the immediately preceding fiscal year, then
multiplying that sum by the lesser of the applicable percentage or
the adjusted average highway and street construction inflation index
for the fiscal year in which the increase becomes effective.
(l) The board may by ordinance impose:
(1) An excise tax on each gallon of special fuel that consists
of compressed natural gas sold i n the county in an amount equal to
the product obtained by multiplying 18.3 cents per gallon by the
lesser of the applicable percentage or the adjusted average highway
and street construction inflation index for the fiscal year in which
the ordinance becomes effective; and
(2) Except as otherwise provided in subsection 5, an annual
increase in the tax imposed pursuant to subparagraph (1), on the first
day of each fiscal year following the fiscal year in which that tax
becomes effective, in the amount dete rmined by adding 18.3 cents
per gallon to the amount of the tax imposed pursuant to
subparagraph (1) during the immediately preceding fiscal year, then
multiplying that sum by the lesser of the applicable percentage or
the adjusted average highway and street construction inflation index
for the fiscal year in which the increase becomes effective.
(m) The board may by ordinance impose:
(1) An excise tax on each gallon of special fuel sold in the
county, other than any special fuel described in paragraph ( k) or (l),
which is taxed by the Federal Government at a rate per gallon or
gallon equivalent of 24.4 cents or more, in an amount equal to the
product obtained by multiplying 24.4 cents per gallon by the lesser
of the applicable percentage or the adjusted average highway and
street construction inflation index for the fiscal year in which the
ordinance becomes effective; and
(2) Except as otherwise provided in subsection 5, an annual
increase in the tax imposed pursuant to subparagraph (1), on the first
day of each fiscal year following the fiscal year in which that tax
becomes effective, in the amount determined by adding 24.4 cents
per gallon to the amount of the tax imposed pursuant to
subparagraph (1) during the immediately preceding fiscal year, then
multiplying that sum by the lesser of the applicable percentage or
the adjusted average highway and street construction inflation index
for the fiscal year in which the increase becomes effective.
2. An ordinance authorized by this section must be approv ed
by a two -thirds majority of the members of the board. If the board
adopts an ordinance authorized by this section, the ordinance must
impose all of the taxes authorized by this section. Upon the adoption
of such an ordinance, and except as otherwise pro vided in
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subsection 5, no further action by the board is necessary to
effectuate the annual increases in the taxes imposed by the
ordinance.
3. If the board adopts an ordinance imposing the taxes
authorized by this section, the ordinance:
(a) Must be adopted before October 1, 2013;
(b) Must become effective on January 1, 2014; and
(c) Is not affected by any changes in the population of the
county which occur after the adoption of the ordinance.
4. The applicable percentage specified by the board for the
taxes imposed pursuant to this section must be the same percentage
for each tax imposed pursuant to this section. Except as otherwise
provided in subsection 5, the board may amend the applicable
percentage by ordinance from time to time, but any such amendment
must not become effective earlier than 90 days after the date of the
adoption of the ordinance amending the applicable percentage.
Except as otherwise provided in subsection 4 of NRS 373.120, the
applicable percentage must not be amended to reduce the applicable
percentage at any time that bonds are outstanding which are secured
by the taxes imposed pursuant to this section.
5. Upon the adoption of an ordinance authorized by this
section:
(a) For the period beginning on January 1, 2014, and endi ng on
December 31, [2016,] 2026, no further action by the board is
necessary to effectuate the annual increases in the taxes imposed by
the ordinance.
(b) For the period beginning on January 1, [2017,] 2027, and
ending on December 31, [2026,] 2036, the annual increases in the
taxes authorized by this section and imposed by the ordinance may
not be effectuated unless [a question is placed on the ballot at the
general election on November 8, 2016, which asks the voters in the
county whether to authoriz e the board to impose, for the period
beginning on January 1, 2017, the increases authorized by this
section in the taxes imposed by the ordinance and the question is
approved by a majority of the registered voters voting on the
question. If the question is approved by a majority of such voters, no
further action by the board is necessary to effectuate the annual
increases in the taxes authorized by this section and imposed by the
ordinance.] , on or before December 31, 2026, the board adopts an
ordinance approved by a two-thirds majority of the members of the
board authorizing the effectuation of the annual increases. If [the
question is not approved by a majority of such voters, ] such an
ordinance is not adopted by the board on or before December 31,
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2026, the board shall not impose any additional annual increases in
the taxes authorized by this section and imposed by the ordinance
after [November 8, 2016, ] December 31, 2026, but any annual
increases in such taxes imposed by the ordinance on or before
[November 8, 2016, ] December 31, 2026, are not affected,
amended, reduced or eliminated and must be continued for any
period during which bonds are outstanding that are secured by such
taxes imposed by the ordinance. If the board adopts an ordinance
pursuant to this paragraph, the ordinance is not affected by any
changes in the population of the county which occur after the
adoption of the ordinance.
(c) For the period beginning on January 1, [2027, if the question
placed on the ballot pursuant to paragraph (b) is approved by a
majority of the registered voters in the county voting on the
question,] 2037, the annual increases in the taxes authorized by this
section and imposed by the ordinance may be effectuated if
a question is placed on the ballot at the gene ral election on
November [3, 2026,] 4, 2036, which asks the voters in the county
whether to authorize the board to impose, for the period beginning
on January 1, [2027,] 2037, the increases authorized by this section
in the taxes imposed by the ordinance and the question is approved
by a majority of the registered voters voting on the question. If the
question is approved at the general election on November [3,
2026,] 4, 2036, by a majority of such voters, no further action by the
board is necessary to effectuate the annual increases in the taxes
authorized by this section and imposed by the ordinance. If the
question is not approved by a majority of such voters, the board
shall not impose any additional annual increases in the taxes
authorized by this section and imposed by the ordinance after
November [3, 2026,] 4, 2036, but any annual increases in such taxes
imposed by the ordinance on or before November [3, 2026, ] 4,
2036, are not affected, amended, reduced or eliminated and must be
continued for any period during which bonds are outstanding that
are secured by such taxes imposed by the ordinance.
6. As used in this section:
(a) “Adjusted average highway and street construct ion inflation
index” means:
(1) For the fiscal year in which an ordinance adopted
pursuant to this section becomes effective, the percentage obtained
by adding the average highway and street construction inflation
index for that fiscal year to:
(I) If the average highway and street construction
inflation index for the immediately preceding fiscal year is greater
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than the applicable percentage, the remainder obtained by
subtracting the applicable percentage from the average highway and
street constructi on inflation index for the immediately preceding
fiscal year; or
(II) If the average highway and street construction
inflation index for the immediately preceding fiscal year is less than
or equal to the applicable percentage, zero; and
(2) For each fiscal year following the fiscal year in which the
ordinance becomes effective, the percentage obtained by adding the
average highway and street construction inflation index for that
fiscal year to:
(I) If the adjusted average highway and street construction
inflation index for the immediately preceding fiscal year is greater
than the applicable percentage, the remainder obtained by
subtracting the applicable percentage from the adjusted average
highway and street construction inflation index for the imme diately
preceding fiscal year; or
(II) If the adjusted average highway and street
construction inflation index for the immediately preceding fiscal
year is less than or equal to the applicable percentage, zero.
(b) “Applicable percentage” means the lesser of 7.8 percent or
the percentage specified by the board in any ordinance imposing a
tax pursuant to this section.
(c) “Average highway and street construction inflation index”
means for a fiscal year the average percentage increase in the
highway and street construction inflation index for the 10 calendar
years immediately preceding the beginning of that fiscal year.
(d) “Highway and street construction inflation index” means:
(1) The Producer Price Index for Highway and Street
Construction until that Index ceased to be published; and
(2) The Producer Price Index for Other Nonresidential
Construction thereafter or, if that Index ceases to be published by
the United States Department of Labor, the published index that
most closely measures inflat ion in the costs of highway and street
construction, as determined by the commission.
(e) “Special fuel” has the meaning ascribed to it in
NRS 366.060.
Sec. 2. This act becomes effective upon passage and approval.
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