Lyon County takes first step toward diesel tax
The Lyon County Board of Commissioners has proposed an ordinance to set a 5 cent per gallon tax on diesel fuel, according to an email from Lyon County Manager Jeff Page.
The board heard public testimony in support and opposition and will conduct a second hearing, scheduled for March 19.
Senate Bill 48, which passed in the 2019 Legislature, authorizes the county commission to impose the tax with a 2/3 majority vote of the board.
If the ordinance is approved it is estimated to generate $2.2 million in revenue for road maintenance. That funding is then split between the county and two cities based upon assessed valuation of the respective jurisdictions.
Currently local government does not receive any tax dollars on diesel fuel sales. Gasoline is currently taxed at 9 cents/gallon for the Regional Transportation Commission (split based upon assessed valuation between the county and both cities) and 6.35 cents for the county road fund.