EDITORIAL: A bait and switch on the Clark County gasoline tax

Surveys typically show that taxpayers harbor a dim view of the political class. Assembly Bill 530, pending in Carson City, offers an explanation for the mistrust.

In 2013, state lawmakers approved legislation to allow the Clark County Commission to increase the local gasoline tax and then index the levy to an inflation measure through 2016. The move was intended to raise millions for road improvements in the Las Vegas area. By punting to the commissioners, legislators avoided directly voting to raise taxes. But they also included a couple of sensible safeguards.

First, imposing the tax increase required the support of at least five of the seven members of the commission, a recognition of the state law mandating two-thirds majorities to pass revenue-raising bills at the Legislature. Six commissioners eventually backed the tax increase.

Second, the legislation gave voters the power to approve a 10-year extension after 2016, which they did by a 56-44 margin. County residents gave their blessing with the caveat that “additional increases to the motor vehicle and various special fuels taxes would be prohibited after December 31, 2026, unless a majority of registered voters in Clark County approve a continuation of (indexing) in November 2026,” according to a fact sheet from the Guinn Center for Policy Priorities.

Nine years later, the tax hike on autopilot has generated more than $1 billion and now raises $160 million annually. Southern Nevada drivers today pay a whopping 75 cents a gallon in gasoline taxes each time they fill their tanks, with 23 cents of that tied to the indexing program.

But the decade-long extension has nearly run its course and expires at the end of next year. Officials with the Regional Transportation Commission say they’ll cut road maintenance and construction projects if the yearly gasoline tax hikes don’t remain on the books. Lawmakers have responded with AB530 to keep the indexing in place — but without requiring a vote of the people until 2036.

Continuing the tax hike might be good policy for a region struggling with rapid growth. But this is deception, pure and simple. Clark County residents approved the levy in 2016 with the assumption that they would have the option of revisiting the issue 10 years later. Lawmakers who would deny local residents that opportunity are engaged in a cynical bait and switch and telegraph their aversion to the workings of democracy.

Gov. Joe Lombardo vetoed a similar bill in 2023, noting, “The arguments in favor of fuel revenue indexing are compelling, but a decision on this issue, which impacts household budgets every day, is most appropriately rendered by the voters.” His logic remains sound. If lawmakers refuse to amend AB530 to allow a voter referendum next year, he should again break out his veto pen.