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Senate Transportation Chair Proposes Gas Tax Hike To Boost Infrastructure Funding

A Derry Republican is proposing using an inflation formula to increase New Hampshire's gas and diesel tax about 4 cents next July.  

State Sen. Jim Rausch said Thursday that his bill would begin restoring purchasing power to the Department of Transportation. New Hampshire's 18 cent tax is used to maintain highways and bridges, but has not been increased since 1991.  

Rausch said the price of a gallon of gasoline was $1.14 in 1991 which meant 18 cents was roughly 16 percent of the price. He said a gallon costs about $3.20 now and 18 cents is only 5.6 percent of the price. He said New Hampshire needs more money to maintain its infrastructure.  

Rausch proposes using the Consumer Price Index in a formula to set the price going forward.
 

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