N.H.'s Gas Tax Increase: Where Your Money Is Going

Jul 1, 2014

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As you're paying more at the pump today, you may be wondering where all that extra money is going.

New Hampshire's 4.2 cent increase to the state's gas tax goes into effect July 1.

The increase, the first since 1991, is expected to generate an additional $32 million annually for the state's Department of Transportation.

The legislation that enacted the increase mandates that 42 percent of that money go towards bonding for the widening of Interstate 93.

A third of the money - 33 percent - will go to local towns and cities to help them pay for road and bridge projects in their communities.

As for the rest of it, 25 percent is earmarked for repairs of secondary roads over the  next two fiscal years.

There is some good news. The increase is set to be repealed in 20 years, or when the bonding for I-93 is paid off, whichever comes first.

Even with the increase, New Hampshire's gas tax remains the lowest in New England.

The bill that created in the increase also establishes a commission to study whether the Department of Transportation is operating efficiently. 

The town of Merrimack is also getting some toll relief. The legislation includes the removal of the toll ramp at Exit 12 on the F.E. Everett Turnpike.

The state will stop collecting the toll July 18. Its closure will mean a loss of roughly $600,000 a year in revenue.