LAS VEGAS (KLAS) — Gas prices continue to set records, with the national average crossing $5 per gallon.
Here in Las Vegas, we are much higher at $5.59 per gallon. That’s up 45 cents from a month ago and $2.23 from one year ago.
Can local officials do anything to provide relief?
While some states have been reducing or suspending their gas taxes during our record high prices, Clark County drivers will be getting a gas tax hike soon.
That’s because of a ballot initiative that raises our gas tax every year through 2026 to pay for roads. And that increase goes up as inflation goes up. The next increase is July 1 — an extra 1.6 cents a gallon. It’s called Fuel Revenue Indexing (FRI).
Here is a breakdown of taxes you pay per gallon of gas right now:
- 68 cents of every gallon goes to Clark County.
- 23 cents goes to the state of Nevada.
- The federal government takes 18 and a half cents.
So about a $1.10 cents of every gallon is in taxes.
As for the state tax, suspending or reducing it would have to be done by state lawmakers.
As for the federal tax, suspending it wouldn’t do Nevadans any good because we have a state law automatically raising the state tax to offset any drop in the federal one.
As for the county tax, the Regional Transportation Commission (RTC) says it cannot reduce or suspend the tax. “Adjustments to either stop indexing or decrease the FRI rate cannot be made at this point due to outstanding FRI bonds because it would impair the bond holders’ lien on the revenue generated by FRI,” according to an RTC statement on Monday.