By Greg Haas, KLAS, May 22, 2023
LAS VEGAS (KLAS) — Gov. Joe Lombardo’s promise to Nevadans to suspend the state gas tax for a year arrived in the Nevada Legislature on Monday.
Senate Bill 502 (SB502) also contains a big adjustment to the state’s commerce tax, an effort to help more small businesses.
If SB502 passes in the legislature, the portion of gasoline taxes that go to the state would be eliminated from July 1 2023-June 30, 2024 — the 2023-24 fiscal year. The bill states the excise tax of 17.65 cents per gallon would be suspended. How much that means in actual savings depends on a lot of things.
That 17.65 cents in savings adds up. It equates to about $2.82 savings on a full tank (16 gallons for older vehicles), or about $2.12 if you have smaller 12-gallon tank. Beyond that, it depends how often you fill up your tank. The more gallons you use, the more savings will add up.
On average, Americans use about 489 gallons of gas per vehicle each year, according to the American Petroleum Institute. If you’re that average user, you’ll save $86.31 over the course of a year.
Some analysis that followed last summer’s temporary suspension of the federal gas tax — which didn’t happen in Nevada because the state law automatically increased the tax when the federal rate dropped — showed that not all the savings trickled down to consumers. SB502 has provisions for “investigations and enforcement” by the Nevada Attorney General’s Office to ensure the savings go to consumers.
The commerce tax usually hits any business that does over $4 million in gross revenue. Lombardo’s proposal would permanently lift the threshold to $6 million.
The bill is scheduled for a hearing on Tuesday at 1 p.m. before the Senate Revenue and Economic Development Committee.