Motorists in Nevada shouldn’t maintain their breath ready for a fuel tax vacation regardless of President Joe Biden urging states to contemplate the tax break as retail costs for gasoline proceed to hover close to file highs.

In June, Biden pushed for a three-month pause of the federal 18.3 cents a gallon fuel tax and hoped every state would comply with go well with by halting their very own gasoline taxes.

It’s an effort to supply non permanent aid to motorists paying file costs for fuel. In Las Vegas, fuel costs have stayed above $5 per gallon since March 16, reaching as excessive as $5.61 on June 16.

In Clark County and Nevada, halting the gasoline tax assortment that’s important to funding much-needed highway work can be a significant endeavor.

If the tax had been paused for 3 months, it might imply tens of hundreds of thousands of {dollars} not collected for future highway tasks within the Silver State.

“Over a comparable three-month interval (July 2021 to September 2021), Nevada collected $81.5 million in state and federal fuel taxes,” mentioned Justin Hopkins, Nevada Division of Transportation spokesman.

In Southern Nevada 69.52 cents is collected as tax on every gallon of gasoline bought. Right here’s the place the cash collected from the fuel tax goes:

■ 21.64 cents per gallon goes to the Regional Transportation Fee of Southern Nevada;

■ 21.04 cents is distributed to the state;

■ 18.4 cents per gallon goes to the federal authorities;

■ 8.44 cents per gallon goes to Clark County.

The fuel tax income the RTC collects — estimated to be round $156.8 million in fiscal yr 2022 — is distributed to jurisdictions like Las Vegas, Henderson, North Las Vegas, Clark County, Mesquite and Boulder Metropolis for highway tasks in these areas.

RTC Chief Monetary Officer Marc Traasdahl mentioned the company’s estimates present that pausing the fuel tax for 3 months between July and September would imply shedding out on $51 million, impacting funding for some highway tasks.

“In all probability not close to time period. We’d keep away from stopping tasks below development, that might be tremendous costly,” Trassdahl mentioned. “However it might affect future tasks. We’d most likely have to postpone just a few tasks sooner or later.”

Statewide highway tasks are pay-as-you go. NDOT is required to make use of state freeway fund income to pay for all tasks up entrance and is then reimbursed by the Federal Freeway Administration for eligible federal tasks, Hopkins mentioned.

“Bonds are utilized to fund bigger tasks when it’s decided to be financially advantageous,” Hopkins mentioned. “Fuel tax income is pledged towards the cost of bonds, requiring bond funds to be prioritized above all different funds, together with present and future tasks. … If state fuel tax income had been to lower, it may affect our bond score and talent to fund tasks sooner or later.”

All that mentioned, it’s seemingly that the RTC or NDOT won’t have to fret a few fuel tax vacation with state and county tax funds. The method to take action is an advanced one and would take a number of approvals.

“The massive factor that causes this to be sophisticated is the bonding, that we do pay for tasks with bond proceeds,” Traasdahl mentioned. “That will actually make a tax vacation tough … we’ve got this excellent debt that we truly pledged this gasoline tax income to the bonds. That actually complicates factor attempting to do a gasoline tax vacation.”

Every bond holder must approve of halting assortment of the gasoline tax. Earlier than these approvals may even happen it might want be signed off by the RTC Board of Administrators, Clark County Board of Commissioners and the state Legislature.

“There may be an NRS (state regulation) that prohibits that type of exercise (halting gasoline tax assortment) and in addition our settlement with the bond holders prohibits that,” Traasdahl mentioned. “So, that must be modified on all these ranges.”

A particular session of the Legislature would seemingly be wanted to make these modifications, if close to time period aid is being sought. In any other case it may very well be finished in the course of the 2023 legislative session, Trassdahl mentioned.

Hopkins mentioned NDOT is extra involved with how sky-rocketing fuel costs may affect future undertaking income.

“It’s vital to notice that we haven’t seen an precise invoice stemming from President Biden’s not too long ago proposed federal fuel tax vacation, nor have there been any comparable proposals on the state stage,” Hopkins mentioned. “We’re persevering with to guage different elements, such because the downward development in fuel tax income created by growing inflation and decreased demand. Which will have a considerably bigger affect on the way forward for NDOT’s program.”

Contact Mick Akers at makers@reviewjournal.com or 702-387-2920. Comply with @mickakers on Twitter. Ship questions and feedback to roadwarrior@reviewjournal.com.