The Lyon County Board of Commissioners will consider proposing an ordinance that would tax the retail sales of diesel fuel at a rate of 5 cents. Senate Bill 48 was passed in 2019 and authorizes the Board of Commissioners to impose the tax with a two-thirds majority vote by the commission or by a majority vote at the next general election.
On Thursday, March 5, the board will be asked to propose the ordinance and take public testimony. If the ordinance is proposed, the board will take action on the ordinance at the next board meeting in March or the first board meeting in April.
If the diesel tax is implemented, it will generate, based upon fiscal year 2019 numbers, $2.2 million for road maintenance. That funding will be distributed to Lyon County, the city of Fernley and the city of Yerington based upon the assessed valuation of each jurisdiction. Lyon County would receive $1.4 million, Fernley would receive $969,000 and Yerington would receive $90,000.
Currently, diesel is taxed by the federal government and the state. Local governments have only been allowed to tax gasoline for years. Diesel vehicles do not currently contribute to the maintenance of roads. This tax does not affect the sales of fuel for agricultural purposes.
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