On Wednesday, June 22, President Biden called on congress and states to suspend the federal gas tax through the end of September. “By suspending the 18 cent gas tax - federal gas tax - for the next 90 days, we can bring down the price of gas and give families just a little bit of relief."
That 18 cents per gallon tax is used to fund repairs for major highways, but the administration says other money could be used in the interim.
Gasbuddy says cutting the tax could spur more drivers to buy, which could ultimately raise prices. The president's plan is also expected to face opposition in congress, where even democratic lawmakers are divided.
And while that cut to the federal gas tax would save Americans an average of 3 to 5 dollars a week at the pump, the same cannot be said for Nevadans.
If this bill passes, Americans will see a gas tax holiday, and who doesn't like holidays? Well unfortunately, Nevadans were not invited to participate in this vacation, because here in the silver state if the federal gas tax goes away, the state tax is instantly increased by the same amount.
This is due to a law put in place in 1973 and then modified in 1997, which will raise Nevada state fuel tax by the exact amount of any reduction in federal taxes.
Nevada revised statute states: "This tax must be imposed and will increase if the tax collected by the Federal Government pursuant to the provisions of 26 U.S.C. § 4081 or any other tax collected by the Federal Government relating to motor vehicle fuel is reduced or discontinued in whole or in part. The amount of the tax so imposed by this State must be equal to the amount by which the federal tax is reduced."
“Whether they add it to the state tax or add a new line, I don't know. But the result will be we as motorists won't see any savings," said Peter Krueger with Nevada Petroleum Marketers.
The current Nevada state tax for gas is 23 cents a gallon for normal unleaded. For the average American, 3-5 dollars a week off gas would have been a nice surprise, but for truckers, the savings could have been a bit more noticeable as their federal tax is 24.4 cents a gallon...
“If you have a 300 gallon tank, that's about 72 bucks on a fill up," said CEO for the Nevada Trucking Association Paul Enos, who goes on to say the big problem is the supply of oil and lack of funding in increased oil production, as well as the transportation of refined petroleum...which has a direct correlation with the price of everyday commodities. “95.3% of everything that we get in this state comes on trucks, 97% of those fuels run on diesel fuel, it does have an impact on every single thing we buy."
As of right now, the only way to lift this law would be if the governor called a special session of the state legislature.
”The governor or the legislature because they can call themselves into special session as well, could go in and void or change this statute,” said Krueger.
We did reach out to the Governor's office to see if this option is on the table, who was told they are "examining all options to ensure Nevadans could benefit from any federal legislation that moves forward."
So as of right now, these $6.06 average gas prices we are seeing in Washoe County are here to stay regardless of what happens to the federal tax.
