(The Center Square) – Decades-long taxes at the pump and on property value have been extended to support infrastructure and police with little fanfare, while Nevada voters were left out of the equation.
The Fuel Revenue Indexing tax has funded around $1 billion for infrastructure upgrades since it was voted in by ballot in 2016. A 0.2% property tax was also renewed after voters approved it in 1996. Both taxes were renewed by the seven-person Clark County Commission despite calls for updated voter approval. The county is the state’s most populous as well as home to Las Vegas.
“I’m not going to argue whether the fuel revenue index tax has helped this community,” Commissioner April Becker (District C) told the commission. “Yes, we need roads, and we need people put to work. But it should have been done the correct way, which is by a vote of the people.”
Becker was the sole dissenting voice on a 6-1 vote to renew the FRI fuel tax Tuesday. FRI was put to ballot as “Question 5” in 2016 and won over 56% of votes, according to Ballotpedia. The 2016 vote on FRI renewed the tax from 2014.
The FRI has taxed roughly $1 billion to go toward more than 700 infrastructure projects in Southern Nevada since it was first issued in 2014, according to the Nevada Regional Transportation Commission.
“A fuel tax is a regressive tax,” said Becker. “What does that mean? It means that it hurts the poorest people in our community. Why? Because if you drive a nice shiny new car, or you drive a car that you weren’t really sure – it’s a junker – if it was going to start this morning. When you go fill up your gas, you’re paying the same amount of tax either way.”
Several local leaders were present to express support for the tax extension.
“Thanks to the FRI, millions of dollars have been invested in critical infrastructure projects throughout Southern Nevada,” Las Vegas Mayor Shelley Berkley told the commission.
Gov. Joe Lombardo publicly supported and signed AB 530 from this summer’s legislative session that allowed for the 10-year extension of FRI ahead of a Dec. 31, 2026 deadline. He also expressed concern that voters were not asked to renew the program.
“I would have strongly preferred that AB 530 go before Southern Nevada voters directly,” Lombardo said in May. “To avoid similar situations in the future, my office is exploring a statutory amendment to require all sunset bills to automatically go back to the ballot before the sunset expires. Politicians should not be the sole arbiters of sunset extensions, and if passed, this amendment would return the vote to the people.”
The county-level votes may have gone under the radar, with the commission meeting in the middle of the 36th Nevada legislative special session. The session has seen several highly publicized legislation such as the Republican governor’s criminal justice bill and Assembly Majority Leader Sandra Jauregui’s film tax incentives bill go to vote, with billions of dollars in public spending on the line. Jauregui is a Democrat from Clark County.
The property tax provision renewed a 0.2% tax on a property’s market value, with the major exception being that tax collection can only increase 3% and 8% for residential and commercial property respectively. It taxes property in Las Vegas and unincorporated areas of Clark County. It was approved by voters in 1996 and pays for about 825 Las Vegas Metropolitan Police Department jobs, about 25% of the department. The agency provides law enforcement in both the city and unincorporated areas.
The decades-long property tax was set to expire in 2027, but SB 451 from this summer allowed for its renewal for another 30 years until 2057.
Nobody spoke in opposition to the property tax at the Clark County Commission’s public hearing Tuesday. The only public comment came from the Vegas Chamber.
“The chamber strongly supports funding for more than 800 LVMPD officers because it is critical to public safety in Southern Nevada,” said Vegas Chamber Manager of Political Affairs Taylor Avery. “Properly funding Metro promotes economic growth by combatting crime, which fosters a secure environment for businesses, residents and visitors.”
The property tax renewal promptly received unanimous approval by the commission.
