MA gas tax Benefits NH
Mass. gas tax seen as boost to NH
Courtesy of: Union Leader
By DERRICK PERKINS
Sunday News Correspondent
SALEM – Local station owners are hopeful a proposed 19-cent jump in the Massachusetts gas tax will bring in more customers from across the border, although talk of the tax hike has left Bay State motorists steaming at the pumps.
Massachusetts Gov. Deval Patrick on Friday unveiled a plan to increase the gas tax as part of an overall transportation package aimed at raising $500 million a year to help offset the cost of repairing the commonwealth’s deteriorating roads, bridges and tunnels.
Reaching a total of 42.5 cents per gallon, the increase would leave Massachusetts surpassing New York and California with the highest gas tax in the nation.
By comparison, the current gasoline tax in New Hampshire is 19.6 cents per gallon, which includes a 1.6-cent environmental fee, although legislators here are eyeing a gas tax hike of 15 cents a gallon — 5 cents per year over the next three years, to 34.6 cents — as a way to fund the upkeep of the state’s transportation infrastructure.
If passed, it would be the first gas tax hike here since 1991.
Across the country, motorists are already paying an 18.4-cent federal tax on each gallon of gasoline purchased.
“If you keep on taxing people, they are not going to buy it,” said Jim Massahos, owner of Salem’s R and J Getty. “People from Massachusetts will start coming over here. If someone gets 20 gallons, that’s like 8 to 10 bucks a week. That’s a lot of money, especially now.”
Massachusetts resident Gary Roding predicts his state’s 19-cent gas tax would cost him an extra $30 a month. (DERRICK PERKINS)
Massahos, who has been operating his Main Street gas station since 1972, said a Massachusetts tax hike would be good news for border communities such as Salem, inviting Massachusetts residents to consider crossing the border for gas as one way to save money.
Frank Laratonda, manager of the Route 28 One Stop Retail Shoppe, said he already had seen a roughly 7 percent increase in the amount of customers from Massachusetts filling up at his pumps, a figure he expects to rise if the Commonwealth increases its gas tax.
“I believe that it will help our sales, at least on-the-border stores,” he said. “People are coming up here right now for other items; why not come up for gas, too? This should definitely be a benefit for us.”
While many New Hampshire motorists view an increase in Massachusetts as making the Granite State a more attractive location for out-of-state consumers — like Derry resident Mike Stankus, who called the proposed move “great news” for the economies of border communities — the plan has left a sour taste in the mouths of Massachusetts motorists.
Topping off his gas tank at Salem’s North Broadway Street Hess station, Richard Bartholdson, a resident of Massachusetts’ South Shore, said the proposed tax increase disgusted him.
“Where does it end?” he asked. “Between that and the cost of food, the lack of jobs, and then the little guy gets to pay more for gas. Do you have to lose your home before you get relief?”
A comparison of the current gas prices here and in Massachusetts, as tracked online at gasbuddy.com, shows little difference at the pump right now — the lowest in New Hampshire was $1.71 per gallon at the Gulf on Union Street in Manchester, compared with prices ranging from $1.85 to $1.89 at stations in Methuen, Mass., with the average in both states hovering around $2 per gallon.
Last week, a New Hampshire gas tax proposal, House Bill 644, sponsored by Rep. David Campbell, D-Nashua, won backing from municipal groups, regional planners and construction companies during a House Public Works and Highways Committee meeting in Concord.
Supporters say the increase is long overdue as a remedy for fixing the state’s depleted highway fund.
Casting a critical eye on such a move here in New Hampshire, Massahos predicted an increase would backfire, inspiring motorists to stay off the roads and dampening business for gas station owners. If the state wanted to lend residents a helping hand during the recession, he said, it ought to cut taxes, rather than raise them.
“These people have already adjusted to where they’re learning not to use two cars anymore because of the price of fuel. All (a tax increase) is going to do is keep people from driving,” Massahos said. “If (legislators) were smart, they wouldn’t raise the tax, and everyone will come over here. It’s a no-brainer.”
Carol Robidoux of the New Hampshire Union Leader staff contributed to this report.
YOUR COMMENTS
Greg, The state leaves it up to each MA resident to properly declare and pay the use tax or sales tax on ANYTHING they purchased elsewhere and had sent to or took home with them to MA. Each state is limited in its power to tax sales in other states, but not in taxing its own residents who return home with good purchased elsewhere. So, yes, MA residents are expected to pay the MA tax on things they purchase in NH, including gasoline for motor vehicles. But MA cannot generally force NH vendors to collect sales taxes from MA residents, unless (perhaps) the vendor is also “doing business” in MA.
- Barry, Jefferson
Yeah, Yay that’s exactly what NH needs more Massplants!!!
Yes, because things as of late have been going sooooo great with our roads being flooded with Mass drivers. Oh, and safer too!
And I beg to differ with the comment “Deval Patrick is what’s wrong with Mass.” Patrick is a symptom of whats wrong with Mass, the people are the real problem.
Yes yes not ALL, but quite frankly; most.
You Mass people let all this happen and then keep on electing the same people. My sympathy for Mass residents is all but gone.
- Craig D, Manchester
Well we may not see that much of a difference in people coming to NH. It’s only about $2 for a tankful of gas. I don’t think people are going to go far out of their way for $2. Steve Vaillancourt a local Manchester politician and gadfly said it best in a qoute of another politician “the government that governs best governs least”. I guess you need no further example than to look at Massachusetts and look at how complex and expensive their beauracracy is.
- Jack Alex, Manchester
Bob,
You seem to be contradicting yourself.
- Mark, Bedford
Watch out gas station owners…like Taxachussetts trying to get their money from the tire warehouses selling tires to their residents, they may require their residents, via their chip on their decal whom travel across the border to pay their taxes per gallon. I hope Deval (Obama Mini Me) doesn’t have this in his evil plans.
- Mark, Milford
Bob Thornton, Milford. Ya Bob, good idea. Cans of gas bombs in their trunks as they travel at ninety miles per hour on route 3 and 93. Should be great for New Hampshire.
Leno, Raymond
- Leno Hebert, Raymond
This is a prime example of what happens when you vote in a liberal government verses a conservative government…generally they would rather raise taxes to cover fiscal irresponsibilities, rather then find ways to become fiscal responsible.
Remember any successful gas tax increase in MA, will eventually find it’s way into NH since the majority of our government representatives endorse liberal policies and will use the MA gas tax as an excuse to raise gas taxes here.
Richard Bartholdson quoted in the article has it dead one…you can’t tax you way out of an economic downturn, but clearly MA is going to try its earnest to do just that!
The funny thing I hear from my MA friends is how many of them wish Mitt Romney was still governor!
- Mike, Epping
I suspect our politicians will see it as an opportunity to raise the NH gas tax and keep it a few pennies below MA so we can still claim a NH advantage.
This would have been unthinkable in July when gas was $4 a gallon. Does anyone believe we won’t see $147 a barrel oil and $4 a gallon gas again?
Gov’t needs to continue to downsize along with the economy not increase taxes which will only make it harder for the economy to recover.
- Pete, Dover
“Supporters say the increase is long overdue as a remedy for fixing the state’s depleted highway fund.”
Let’s first see an accounting of how much of the previous gas tax was used for its stated purpose. I suspect it’ll be a bit less than 100%.
- Harvey B, Wilton
Much ado about nothing as usual. Gas in Massachusetts, even with their higher taxes, is cheaper than here in tax free New Hampshire. It turns out that there are a lot of other things involved in pricing. According to gas station owners, in less your station is across the street, people don’t go to other states to buy gas no matter how much credit you give them for being cheap.
- Robert, Deerfield
Deval Patrick is what’s wrong with Massachusetts .
- Lew, Manchester
If a Mass. motorist buys gas in New Hampshire, does Deval Patrick expect the motorist to send the difference in gas taxes to him? And does Deval expect NH gas stations to collect the Mass. gas tax on anyone putting gas into a car with Mass. plates?
- Greg, Manchester
Marie it depends on how close to the border you are. If you are close enough then you can save money. Also, some people drive up here to NH for other things too so they will fill up before they leave and possibly fill up a few extra cans of gas to bring home with them.
Taxachusetts is going to tax and spend itself out of its entire population. The only people left down there will be the political hacks and their parasite families along with the lazy welfare skanks.
- Bob Thornton, Milford
How many people drive farther away to purchase cheaper gas?
Doesn’t that defeat the purpose of saving money?
- Marie, Concord
