GOP: Reduce gas tax for 2 months
Highway revenue to fall $6.6 million
By Matthew Spolar / Monitor staff
April 22, 2011
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The top two members of the House rolled out a proposal yesterday to temporarily cut the state gasoline tax by 5 cents per gallon, a move intended to lower the price at the pump through the end of June while the state loses an estimated $6.6 million in highway fund revenue.
House Speaker William O'Brien and Majority Leader D.J. Bettencourt said yesterday that the plan shows the Republican-controlled Legislature understands the day-to-day struggles faced by New Hampshire residents as gas prices have leaped to nearly $4 per gallon in recent months.
"We know when we're up here talking about this bill or that bill . . . for most of our constituents, what they are concerned about on a daily basis is the cost of living," O'Brien said. "We thought about, 'How can we do something that would assist them in being able to go about their lives and transport themselves to their jobs and go to the grocery store?' "
Bettencourt, a Salem Republican, said the gas tax cut would be an economic boon to border communities by luring residents from neighboring states into New Hampshire just in time for the summer tourism season. The state tax on gasoline has been set at 18 cents per gallon since 1991; the proposal would lower it to 13 cents.
"They could conceivably see a cross-border advantage of the 5 cent decrease and end up coming up here and filling up here," Bettencourt said.
The money to cover the loss in revenue would come from a $30 car registration surcharge signed into law by Gov. John Lynch two years ago. Republicans are moving to eliminate the surcharge at the end of the fiscal year, June 30. Until the surcharge expires, the House proposal would redirect surcharge revenue to cover losses from the 5 cent reduction in the gas tax.
O'Brien said the decision to take money from the highway fund and use it to cut the gas tax presents the Democratic governor with a "straightforward decision."
"Does he see the same pain that we see in the economic life of New Hampshire?" he said.
Lynch's office wasn't impressed by the Republican leadership's proposal.
"This proposal is simply a political gimmick and would offer no relief at the pumps for the people of New Hampshire," said Colin Manning, Lynch's spokesman. "What it would do is provide less money for the people of New Hampshire to maintain our roads and bridges."
Rep. David Campbell, a Nashua Democrat who sits on the House Public Works and Highways Committee, said the tax cut "will just be gobbled up by the oil companies" in a volatile market. Rep. Candace Bouchard, a Concord Democrat on the committee, called it "political grandstanding" and said the loss of highway fund revenue would affect the state Department of Transportation's ability to complete important projects, such as the rebuilding of the Sewalls Falls Bridge in Concord.
But O'Brien said he expects the tax cut, if passed, to have an immediate impact on gas prices in the state because of competition between vendors.
"They know that their customers will be expecting the price of gasoline to, likewise, go down and those who choose not to do it would be at a competitive disadvantage," O'Brien said.
The tax cut would need to pass the House and then be agreed to by the Senate before reaching Lynch's desk. O'Brien said he has spoken with members of the Republican-controlled Senate about the cut.
"They want to fully understand it, and we think they'll move with us once they fully understand it," O'Brien said.
(Matthew Spolar can be reached at 369-3309 or
mspolar@cmonitor.com.)
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