Washoe County electric and hybrid vehicle drivers who've avoided pain at the gas pumps could soon feel the squeeze on their wallets in a different way.

An advisory question on Washoe County ballots asking if electric and hybrid vehicle drivers should pay an annual road use fee to help fund the county's road construction and repairs drew overwhelming support, with more than 65 percent of voters supporting it.

Because it was an advisory question, the question's approval doesn't implement any sort of fee. It does, however, allow Washoe County Regional Transportation Commission (RTC) to pursue legislation that could add fees during the upcoming legislative session, which begins in February.

The issue of how to fund road repairs in the face of rising costs, more efficient gas-powered vehicles and the increased popularity of electric and hybrid vehicles is a nationwide issue. While gas and diesel drivers pay federal, state and local fuel taxes at the pump that are used to fund road construction and repairs, electric and hybrid vehicle drivers don't, or they pay reduced amounts. 

Most states have taken approaches that range from one-time fees to charging drivers per mile driven. Nevada, however, doesn't charge electric or hybrid vehicle drivers a dedicated surcharge, and because they don't use gas — or as much gas — electric vehicle (EV) drivers pay no fuel taxes and hybrid drivers pay reduced fuel taxes.

And their numbers in Washoe County are increasing.

Between 2020 and 2024, EV and hybrid registrations grew from 2.2 percent to more than 5 percent of all vehicle registrations. Last year, that grew to a combined 6 percent of the roughly 500,000 vehicles registered in the county. 

"While 6 percent doesn't seem like a huge number, we know it's going to continue to grow," said Paul Nelson, government affairs officer for RTC.

RTC requested the advisory question be placed on the ballot as it looks to address a more than $1 billion road maintenance funding shortfall. During polling leading up to the ballot question, Nelson said that, "People that were supportive of it said it was a fairness question … That's really what it came down to."  

Nelson said the commission will ask its board to approve moving forward with a bill for the upcoming session. RTC is allotted one bill draft request per legislative session. 

Then, "it will be up to the Legislature," Nelson said. 

Highest fuel tax in the state 

Last year, the nonprofit, nonpartisan Kenny Guinn Center for Policy Priorities drafted a report analyzing revenue options as more drivers shift to electric vehicles and hybrids. According to the study, additional registration fees on EVs and hybrids "may be the best option for Washoe County due to its ease of implementation, cost-effectiveness, and revenue-generating potential."

Regular hybrid vehicles recharge their own, small batteries through regenerative braking and power from the gas engine. They are not plugged into outlets and are not designed to drive on electricity.

Plug-in hybrids, however, connect to electrical outlets and can typically drive up to 50 miles on electricity. Once their electric range is depleted, they convert to gas and operate like a traditional hybrid.

The annual fees currently being considered — starting at $250 for EVs and $125 for hybrids — are still less than most gas drivers would pay annually in fuel tax. Those drivers pay an estimated $480 annually, according to Nelson.

The fee would extend to passenger cars only and include indexing. Each July 1, when the county's fuel tax increases, the EV and hybrid fees would also increase. 

Indexing fuel taxes to inflation has long been a way to solve transportation funding problems. In 2010, Washoe County's fuel tax was aligned with the producer price index, which tracks changes in nonresidential construction costs, to align gas tax revenue with rising costs for road construction projects. 

At less than 25 cents per gallon, Nevada's state gas tax is 37th highest in the nation. The diesel tax of 27.75 cents per gallon is 34th in the nation.

But Washoe County drivers pay much more.

Drivers pay another more than 58 cents per gallon in local taxes on gas and diesel sold in Washoe County — higher even than Clark County. Critics claim that Washoe County's fuel tax is the highest in the nation. Nelson said he isn't sure how the county stacks up nationally, but did confirm Washoe County has the highest fuel tax in the state. 

But to RTC, those funds are critical, serving as the largest source of funding for road construction and maintenance projects in Washoe County, covering roughly $420 million in road improvements over the last five years.

RTC estimates it is facing a roughly $1.4 billion funding shortfall for road repairs over the coming decade. It also estimates that the increase in electric and hybrid registrations between 2020 and 2025 led to roughly $15.6 million in lost fuel taxes.