Motorists beware: if you're in New Hampshire you're going to see your gas tax jump this July, and even if you're not in NH, your state could be eyeing a similar move, joining several states that have already raised gasoline taxes, or are looking at the subject.
In New Hampshire, Gov. Maggie Hassan signed the bill yesterday that will raise gasoline taxes (and diesel taxes) by 4 cents per gallon starting on July 1. The boost in fuel tax would raise New Hampshire's current 18-cent per gallon tax to 22-cents per gallon, which would keep New Hampshire's gas tax the lowest in New England.
Like many other states that have raised fuel taxes, the increase would provide funding to infrastructure like highways and bridges, which is the backdrop for where the tax hike was announced- on a new bridge on I-93 in Windham.
The bill directs about half of the new tax to highway improvements for two years, then about half of the revenue would be used to pay off some $200 million in loans needed to pay to finish the construction and expansion of I-93.
The only good news for motorists in New Hampshire is that the increase in gas tax is set to expire in 20 years, once the debt for the project is paid off through the increased tax.
GasBuddy previously identified New Hampshire as possibly raising their fuel tax when we wrote about the subject last December. Other states we mentioned at that time that are looking at raising fuel taxes: Iowa, Minnesota, Utah, and Washington.