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Indexed Fuel Revenues

How the Fuel Revenue Index is Fueling Our Future

During the Clark County Commission’s September 3 meeting, the Board of Commissioners approved an ordinance that will index the fuel tax to inflation in Clark County, generating up to $700 million in bonding capacity. This revenue will fund 185 regionally and locally significant transportation projects throughout Southern Nevada and create between 8,931 and 9,467 jobs starting in spring 2014.

Indexing fuel revenues is the practice of tying the fuel tax to the rate of inflation to provide funds for transportation infrastructure projects. The Fuel tax is a common phrase describing the amount we all pay when we buy gas to fill-up our cars, busses and trucks.

The ordinance will go into effect Jan. 1, 2014 and last through Dec. 31, 2016, resulting in an approximate three-cent increase per gallon of gas per year. As a result, the annual impact to an average driver in Southern Nevada equates to roughly a dime a day over the next three years.

Over the next three years, the local community will be making a local investment into Southern Nevada’s future creating needed jobs for people that will build, maintain and enhance transportation infrastructure; improve overall commute times; accommodate growth; diversify the economy; and help ensure Southern Nevada’s community is able to compete globally with other communities.

The Regional Transportation Commission of Southern Nevada (RTC), both the local transportation planning agency and the regional traffic management agency, will work with the jurisdictions to fund the design and construction of transportation projects utilizing fuel indexing revenues. Without indexing, the RTC was forecasting only $22.4 million a year over the next 10 years, in available funds for street and highway projects, which is only enough to build one interchange per year, one mile of roadway per year in each jurisdiction, or one beltway segment without bridges per year.

Note: Data associated with jobs, projects and bonding revenues could change pending variables that impact the economic environment, including: ten-year rolling average of the PPI (Producer Price Index), interest rates, fuel consumption, etc. For more information, please email the RTC at: or call (702) 676-1754.