LAS VEGAS (FOX5) — As the Iran War continues and ceasefire negotiations stall, President Donald Trump has suggested a pause in the federal gas tax to help out Americans struggling with high prices at the pump.
However, a state law may mean Nevadans won’t see any relief at the pump.
Nevada Revised Statute 365.185, which has been in place since 1973 and was modified in 1997, requires that the state step in to raise Nevada’s fuel tax in case the federal tax is reduced or discontinued.
“This tax must be imposed and will increase if the tax collected by the Federal Government pursuant to the provisions of 26 U.S.C. § 4081 or any other tax collected by the Federal Government relating to motor vehicle fuel is reduced or discontinued in whole or in part,” the law reads in part. “The amount of the tax so imposed by this State must be equal to the amount by which the federal tax is reduced.”
After President Trump announced the proposal Monday, lawmakers around the country, including Senator Mark Kelly of Arizona, agreed that the move was needed. Senator Josh Hawley of Missouri announced that a bill was being drafted immediately to be introduced as soon as possible.
Back in 2022, Senators Catherine Cortez Masto and Jacky Rosen also supported a bill to suspend the federal gas tax while Nevadans were struggling with inflation under the Biden Administration. However, fierce opposition in Congress led to the bill dying without much support.
FOX5 has reached out to the Governor’s Office to learn more about how Trump’s proposal may impact prices at the pump in Nevada, if at all.
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