Diesel Tax Bill Gains Traction in Nevada

A bill that would levy a 5-cent tax on diesel fuel is getting overwhelming support from county officials, agencies and trucking associations in Nevada.

Senate Bill 48 seeks to allow rural counties and municipalities to collect a 5-cent diesel tax. Despite impacting diesel trucks like semis, it surprisingly enjoys strong support from trucking associations.

This is because the proceeds will be used to maintain the state’s highways and infrastructure, especially rural roads, 65% of which happens to be in rural counties that lack enough funds.

In addition to rural road repairs, 10% of the income generated from the tax will be used to build new truck parking areas.

One such proponent includes the Nevada Trucking Association. According to CEO Paul Enos, the lack of proper truck parking is one of the primary issues of truckers transiting the Sagebrush State, compounded by the fact that Nevada receives 92% of freight via long-haul trucks. This has resulted in semis “parking on the interstates, off ramps and in neighborhoods” across the state.

Other supporters include the Navada Taxpayers Association, the Nevada Builders Alliance, and 12 of the state’s 15 rural counties. Only the Nevada Families for Freedom and the local chapter of Americans for Prosperity have so far opposed the bill.

It should be noted that similar bills in the past didn’t fare so well. In 2016, Assembly Bill 191 sought to levy fuel taxes tied to the rate of annual inflation, while in 2017 Senate Bill 439 proposed a similar 5-cent diesel tax for road maintenance and new truck parking areas. Both bills failed to pass.

The latest bill, SB48 will apply to rural counties and municipalities with less than 100,000 residents and sell more than 10 million gallons of diesel annually. Excluded from the proposed tax is red diesel used for agricultural and mining purposes.

If it passes, the bill will make Nevada the first state in the US to provide state-funded truck parking.