County proposes 5 cent diesel tax

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Robert Perea, The Fernley Reporter

The Lyon County Board of Commissioners on March 5 proposed an ordinance to set a 5 cent per gallon tax on diesel fuel. 

The Board heard public testimony both in support and opposition. The Board will conduct a second hearing currently 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.

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If the ordinance is approved, If Diesel tax is implemented it is estimated to generate, based upon fiscal year 2019 numbers, $2.2 million dollars for road maintenance. That funding would be distributed to Lyon County, the City of Fernley and the City of Yerington based upon the assessed valuation of each jurisdiction. At that figure, Lyon County would receive $1.4 million, Fernley would receive $969,000 and Yerington would receive $90,000.

Currently, local government does not receive any tax dollars on diesel fuel sales. Gasoline is currently taxed at 9 cents per 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.

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