LAS VEGAS, Nev. (FOX5) – Ads across Las Vegas Valley gas stations are fueling a debate over the future of taxes at the pump, all surrounding proposed legislation to manage a source of funding for transportation projects for the next ten years.
The ads center around Assembly Bill 530: petroleum companies, and gas stations and some organizations have voiced opposition, but the bill is backed by unions, trade and construction workers, and local leaders across Clark County.
Fuel Revenue Indexing (FRI) adjusts the fuel tax to inflation, all to make sure funding keeps pace with inflationary forces. In 2016, Clark County voters approved a ten-year extension through 2026.
Fuel Revenue Indexing generates $0.156 per gallon of fuel sold for the Regional Transportation Commission of Southern Nevada. According to RTC, since the FRI’s inception, it has led to 702 roadway projects, 20,400 jobs, and $3 billion in transportation investments to improve safety and tackle congestion.
If indexing expires after December 31, 2026, RTC estimates it could lose $200 million in funding annually for crucial projects across the growing Las Vegas Valley.
“Assembly Bill 530 is a vital piece of legislation that would ensure continued funding for the infrastructure needed to support our rapidly growing population, projected to reach 2.7 million by 2034, as well as enhance safety, create capacity and keep Southern Nevada moving,” said M.J. Maynard, CEO of the Regional Transportation Commission of Southern Nevada, in a statement to FOX5.
The legislation would allow Clark County Commissioners to continue Fuel Revenue Indexing for ten years, and could only be passed with a 2/3 vote. According to Commission Chair Tick Segerblom, the index would be adjusted for inflation. In 2036, voters would once again decide the future of the Fuel Revenue Indexing on the ballot.
Commissioners would be held accountable and beholden to the will of voters with their decisions on the indexing, according to the bill’s supporters.
At Terrible’s gas stations across Southern Nevada, ads opposing AB 530 play as drivers fuel their vehicles, directing them to Stop AB530.
“If politicians can bypass voter approval for tax increases here, it could open the door for more taxes being raised without direct public consent,” the website states.
Other groups share the same concerns.
“Are we afraid of a vote by the people? Do we believe in democracy? I think it’s very important that we have the vote of the people,” said Janine Hansen of Nevada Families for Freedom.
“Nevada voters deserve the right to weigh in when it comes to taxes that affect the cost of commuting goods and everyday living. Right now, Nevadans are already paying some of the highest gas prices in the region,” said Victoria Supple, representing Western States Petroleum Association.
A different version of the bill was vetoed by Governor Joe Lombardo in 2023; that bill had no “sunset” clause.
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