House Passes Gas Tax Increase

The New Hampshire House of Representatives has voted 193-141 to pass a 4-cent increase in the state's gas tax, sending the bill onward to Gov. Maggie Hassan, who has said she will sign it into law.

The state Senate voted last month to pass the bill, which would increase the tax from 18 cents per gallon to just over 22 cents per gallon. 

It would mark the first time since 1991 that New Hampshire raised its state gas tax, also known as the "road toll." There is widespread support for road and bridge improvements, but mixed public opinion on increasing the gas tax.

The 4-cent increase would generate about $33 million a year, and the money would be dedicated to completion of the bonding of the widening of Interstate 93.

The bill also contains language authorizing the Department of Transportation to eliminate the northbound and southbound tolls at Exit 12 on the F.E. Everett Turnpike in Merrimack.

Hassan issued a statement after the vote April 23:

"A solid, modern transportation infrastructure is the foundation for long-term economic growth, critical to the success of New Hampshire’s people and businesses. Today’s bipartisan vote to strengthen infrastructure investment reinforces that there is broad agreement about the need to take action, and I applaud the House of Representative for taking action to improve our roads and bridges.

"I also thank Senator Rausch for his bipartisan leadership, as well as the Business and Industry Association of New Hampshire, various chambers of commerce and other representatives of the business community across the state for their advocacy to support this important legislation.

Today’s vote represents an important step toward addressing our transportation needs. I look forward to signing this bipartisan legislation into law so we can keep New Hampshire's economy moving forward by advancing critical road and bridge projects and finishing the long-overdue expansion of I-93."

The House debated more than an hour on the bill, with floor fights on amendments to remove additional tolls on the F.E. Everett in Merrimack.

Rep. Lenette M. Peterson, R-Merrimack, offered an amendment to remove two other tolls on the turnpike, but the amendment was defeated.

"The town of Merrimack should be released from bondage," Peterson said. 

Rep. Daniel Tamburello, R-Londonderry, called the toll removal the moral thing to do. "These people have been suffering with these tolls long enough," he said.

Rep. David Campbell, D-Nashua, maintained that removing additional tolls would have a negative impact on the revenue fund and the bond council would certainly oppose it. 

Reps. Laurie Sanborn, R-Bedford, and Gene Chandler, R-Bartlett, argued against the 4-cent increase in the gas tax.

Sanborn questioned whether the bill would really dedicate all of the revenue from the gas tax increase to transportation improvements.

"My concern isn't just about increasing a tax on people, especially on working families and people on fixed incomes that are already feeling pain at the pump. And my concern isn't just about increasing a tax and burden on businesses, which in turn increase consumer prices for all people," Sanborn said. "It's also about trust. Will this bill really put every additional penny raised into fixing roads and bridges?"

Sanborn pointed to a state statute that allows the Legislature to divert up to 27 percent of highway fund revenue to other state agencies. She said the last budget did just that.

Rep. Kevin Waterhouse, R-Windham, said the 4-cent increase would help New Hampshire complete the widening of I-93 from Manchester to Salem, a corridor he called the state's "economic lifeline."

"It's time has finally come," Waterhouse said. "That money will not be diverted for any purpose."

After the various amendments were rejected, Campbell offered a final word on the bill itself. While critics say the gas tax increase represents a 23 percent hike in the rate, Campbell noted fuel prices increased 300 percent since the last rate adjustment.

"It's time to fix our roads and bridges," he said.