Establishes a road usage fee for motor vehicles registered to travel on New Hampshire roads based on the equivalent miles per gallon of the vehicle.
A bill to increase the state's gasoline tax, SB 367, was signed into law in 2014.
The tax (officially known as the road toll) had stood at 18 cents per gallon since 1991. The tax was increased to 22.2 cents per gallon, effective July 2014.
The increase is projected to generate $32 million in annual revenue. Here's a breakdown on where the revenue will be spent*:
- 42% for bonding for the I-93 widening project
- 33% to municipalities for local road and bridge repair
- 25% to repair secondary state roads in 2015-16
The primary sponsor of SB 367 was Sen. Jim Rausch (R-Derry). The measure passed the House (193-141) and Senate (15-9) before it was signed by Gov. Maggie Hassan. The law also removes the Everett Turnpike's toll at Exit 12 in Merrimack and creates a commission to study the efficiency of the Department of Transportation. The 4-cent increase is to be repealed in 20 years, or when the I-93 project bonding is paid off.
NH ranks 32nd in the nation for motor fuel taxes, according to the American Petroleum Institute.
*Source: Concord Monitor
PROS & CONS
The call for a road toll increase was brought on by a nearly $50 million funding shortfall in the Department of Transportation. DOT Commissioner Christopher Clement warned of hundreds of layoffs, the closure of highway sheds and the elimination of 6 of 13 bridge maintenance crews unless revenue increased.
Opponents of a gas tax increase argue that the increase would unfairly burden low-income residents.
"I continue to oppose any increase in the gas tax; I believe it hurts the families of New Hampshire who can least afford it, and it burdens our businesses trying to make ends meet in a fragile economy," Senate President Chuck Morse (R-Salem) said in a statement (Dec 2013).
Opponents of a gas tax increase also argue that the state could reallocate existing revenue to pay for infrastructure repairs.
Establishes a special annual registration fee for hybrid and electric vehicles of $100 and $200, respectively.
Establishes a road usage fee ranging from $0 to $123.33, based on a vehicle's miles per gallon, as part of annual car registration. The fee would go to construction and maintenance of state roads and bridges.
Establishes prepaid road tolls for motor vehicles powered by alternative energy sources, such as batteries, solar cells, and natural gas. The House amended the bill to only create a prepaid road toll for electric vehicles.
Repeals the gas tax exemption for federal government fuel purchases, except for the armed forces.
Establishes a road usage fee for motor vehicles registered to travel on state roads based on the equivalent miles per gallon of the vehicle.
Establishes a commission to study revenue alternatives to the gas tax for the funding of the state’s highways and bridges.
Repeals the increase in the gas tax passed in 2014 and eliminates funding for highway projects supported by the increase.
Imposes the road toll (a.k.a. gas tax) on alternative fuels such as natural gas and propane.
Adds a road toll fee for hybrid and electric vehicles at the time of registration.
Creates a committee to study alternatives to the gas tax for infrastructure funding.
Requires that all gas tax revenue be spent on infrastructure repairs. This bill would eliminate gas tax revenue for the Department of Safety.
Increases the gas tax by four-cents per gallon and removes the toll at Exit 12 in Merrimack.
Was NH right to raise the gas tax in 2014?
A bill that would impose a road use fee, based on a vehicle's average miles-per-gallon, was sent to interim study. As of October, no work sessions to study the bill had been held.
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