Nevada DMV reports $1.8 billion in FY24 collections, seeks extended highway-fund cap to continue IT modernization

The Nevada Department of Motor Vehicles told the Assembly Committee on Revenue that it collected roughly $1.8 billion in fiscal 2024 and is seeking continued flexibility to use a larger share of highway funds for operations while it completes a multi-year computer modernization effort.

Deputy Director Angela Smith Lam said the department processes about 8 million transactions annually and that roughly $5 million of those are financial transactions processed daily through a mix of in-person and online channels. Smith Lam said DMV operations are primarily funded through highway funds, fees and commissions; she said DMV currently receives about 6% of fees collected for operational expenses and that the department is requesting to extend a cap on highway fund appropriations at 27% through the next biennium to continue modernization efforts.

"We have determined that the project needs to occur for more years," Smith Lam said of the DMVtransformation effort. She told members the vendor that assessed the modernization estimated an eight-year timeline for a project of the department's size and scope and that DMV had been attempting an accelerated, four-year approach. "We will continue to ask for funds for the transformation effort with vendor support through this next biennium," she added.

Fiscal detail and taxes: Bethany Musselman, DMV's fiscal operations administrator, explained the calculation and distribution of the basic governmental services tax (BGST) and supplemental governmental services tax (SGST), both collected at registration and based on depreciated vehicle value, weight, age and MSRP. Musselman said BGST receipts are split among DMV commission (6%), highway fund, school operating funds, school debt funds and the county where the vehicle is registered; SGST is calculated similarly at one-quarter the BGST rate and is retained in part by DMV and otherwise sent to the county (currently collected only in Churchill and Clark counties).

Karen Stoll, administrator of the motor carrier division, described fuel-tax collections. She said DMV collected about $873,000,000 in fuel-related revenues in FY24, of which about $663,000,000 was motor fuels and about $210,000,000 was special fuels. Stoll said suppliers are allowed to retain 2% of tax collections to cover collection costs and sample losses (2% amounted to approximately $16,130,000 in 2024). She also explained county option fuel taxes and indexed fuel taxes enacted by Clark and Washoe counties and described how distributions are allocated using Department of Taxation and Department of Transportation demographic and road-mile reports.

EVs and registration: Addressing how electric vehicles affect revenue, Musselman told the committee that "Currently electric vehicles pay their registration the same as any other standard vehicle. So, it's based on the depreciated value of the vehicle and then a $33 registration fee." DMV also provided vehicle counts as of January 2025: roughly 2,200,000 standard-fuel vehicles, 78,000 hybrid vehicles, 75,000 "alternative" and 62,000 electric vehicles.

Customer service and modernization impacts: Lawmakers asked about SR-22 procedures, appointment availability and staffing. On SR-22 (the insurance/financial responsibility filing associated with certain reinstatements) Deputy Director Smith Lam said DMV offers a stay during hearings but acknowledged constituents can experience long gaps in license reinstatement and that she would follow up on specific cases. On modernization and service access, Smith Lam said DMV's new queuing system has reduced appointment waits (pre-pandemic appointment availability near 90 days is now closer to 15 days) and that the agency plans to transition from vendor support to internal IT staff over time.

Questions and next steps: Assemblymembers pressed on the timeline and cost of the IT effort; Smith Lam said core vehicle products are scheduled to be rolled out during the coming biennium while credentialing and other products will continue beyond that timeline. She said DMV expects to continue requesting transformation funding during the next biennium and to provide the committee with the department's roadmap and updated projections.

Ending note: DMV's presentation provided numbers on fee and fuel-tax collections, explained BGST/SGST mechanics and confirmed DMV will follow up with members on SR-22 individual cases and provide its modernization roadmap and updated revenue projections to the committee.