CLARK COUNTY BOARD OF COMMISSIONERS
AGENDA ITEM
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Petitioner: |
Kevin Schiller, County Manager |
Recommendation:
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Introduce an ordinance to amend Title 4, Chapter 4.18, Sections 4.18.095, and 4.18.175 of the Clark County Code to remove the funding limit; to amend Section 8 of Clark County Ordinance No. 2931 to remove the sunset date and associated funding limitations; and providing for other matters properly related thereto; and to set a public hearing. (For possible action)
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FISCAL IMPACT:
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BACKGROUND:
The funding mechanism supporting transportation and air quality improvements in Clark County originates from a voter-approved measure adopted on the November 2002 ballot, which established the Regional Transportation Commission’s “2002 Fair Share Transportation Funding Program.” This program was designed to generate approximately $2.7 billion over 25 years through a combination of taxes on developers, aviation fuel, and retail sales, and has been used to fund transportation infrastructure, transit services, and air quality improvements.
During the 72nd (2003) Nevada Legislative Session, Senate Bill 237 was enacted, amending Nevada Revised Statutes (NRS) 377A.030, and became effective on May 22, 2003. As set forth in the 2003 Statutes of Nevada (Chapter 187), SB 237 included a sunset provision establishing that, upon reaching $1.7 billion in collected revenues or by June 30, 2028, whichever occurred first, the tax rate would be reduced from one-half of one percent (0.5%) to three-eighths of one percent (0.375%).
Consistent with this authority, in July 2003, Clark County adopted Ordinance No. 2931, effective October 1, 2003, amending Sections 4.18.095(d) and 4.18.175(d) of the Clark County Code to allocate one-quarter of one percent (0.25%) of the sales tax for transportation-related purposes, including the construction, maintenance, and repair of public roads and air quality programs. Of this amount, a minimum of 8% of the proceeds was designated for transfer to the Air Quality Fund, subject to a cumulative cap of $194 million.
During the 26th (2010) Special Legislative Session, Senate Bill 5 was enacted to revise NRS 377A.030. Senate Bill 5, effective March 11, 2010, removed the sunset provisions, including both the $1.7 billion cap and the June 30, 2028, date, and eliminated the corresponding reduction in the tax rate. The statute was amended to reflect a total tax allocation of one-half of one percent (0.5%) without limitation.
Although state law was updated to remove the sunset date and associated funding limitations, the Clark County Code was not revised to reflect these statutory updates. The ordinance revises Section 8 of Clark County Ordinance 2931 to remove the sunset and funding limitations consistent with Senate Bill 5 of the 2010 Special Legislative Session. Furthermore, staff recommends removing the $194 million cap on transfers to the Air Quality Fund in Sections 4.18.095(d) and 4.18.175(d).
The proposed ordinance addresses this inconsistency by conforming funding provisions with current statutory authority in Ordinance No. 2931 and aligns the Clark County Code with the Nevada Revised Statutes.
Staff recommends that a public hearing be set for September 15, 2026, at 10:00 a.m.