Gas tax revenue shifted to big counties

Friday, Dec. 8, 2000 | 10:43 a.m.

CARSON CITY -- Despite concerns of rural representatives, a legislative committee Thursday stamped its final approval on plans to shift more of the receipts of the gasoline tax to the big counties of Clark and Washoe.

Marvin Leavitt, director of administrative services for the city of Las Vegas, said that while some in the "cow counties" don't like the results, they agree the new formula of distributing the tax is fairer.

But Assemblyman Roy Neighbors, D-Tonopah, said the tax revenue shift plan would mean that some rural counties would not get an increase in revenue. And some suggested the distribution be based also on inflation.

But Leavitt said the proposal calls for all rural counties to receive what they are allocated this year. And the revenue from the gasoline tax doesn't equate with inflation. It is based on the amount of gasoline sold.

Currently 3.6 cents of tax on every gallon of gasoline goes back to the counties. That yields about $38 million a year. The distribution to counties is now based on road miles, the size of the county, the miles traveled and population.

The new formula would divide the money among counties with two-thirds based on population and one-third on road miles. The committee, headed by Sen. Ann O'Connell, R-Las Vegas, had previously given tentative approval to the proposal. The new system would work to the advantage the fast growing areas in the state.

Leavitt, a member of the Legislative Committee to Study the Distribution Among Local Governments of Revenue From State and Local Taxes, said some rural people have suggested that the number of tourists traveling the highways in their counties be factored into the formula. But Leavitt said that would work to the disadvantage of rural Nevada because of the heavy visitor volume in Clark County.

Clark County now receives about $16 million a year from the tax. That would rise to about $16.5 million next year if the new formula was adopted. And its share would grow as its population increases.

Neighbors said this proposed formula "would have to be fine-tuned" in the Legislature.

The committee was also informed Thursday that a state commission on school construction is proposing a plan to modify the $3.64 property tax limit. The state Planning Commission on New Construction, Design, Maintenance and Repair of School Facilities wants to allow the property tax to be raised by governments beyond the $3.64 limit if they get voter approval.

The planning commission is also recommending that school districts be allowed to place issues on the ballots to raise taxes.

Mary Peterson, state superintendent of public instruction, said in a letter to the tax distribution committee that school districts have "relatively few options for funding school facilities."

"Of these sources, the only one a school district can access under its own authority is property taxes," Peterson said. The school districts, Peterson said, must go through county governments to raise the sales tax or the residential construction tax.

"We recommend allowing school districts to propose ballot questions for revenue sources that are available to them for capital projects," said Peterson.

All of these recommendations will be forwarded to the 2001 Legislature.