Politics & Government

Bedford Senator Leads Fight, NH Senate Nixes Gas Tax Hike

Senate also squashes cigarette tax.

The New Hampshire Senate has blocked a bill to increase the state's gas tax by 12 cents over three years.

The Senate voted 18-6 today to "indefinitely postpone" House Bill 617, with Sen. Andy Sanborn (R-Bedford) among the Republicans leading the fight against the bill.

The bill, which was sponsored by Rep. David Campbell (D-Nashua), aimed to dedicate revenue raised for road and bridge improvement projects around the state.

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A committee recommendation to re-refer the bill to committee, effectively nixing it this session, failed by a 13-11 vote. Sen. Jeb Bradley (R-Wolfeboro) proposed the bill be killed before Sanborn moved to indefinitely postpone the bill for this session.

That motion led to discussion about whether or not the Senate could consider any type of a gas tax increase during this biennium.

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"The taxpayers are struggling," Bradley said. "The small businesses are struggling."

Sanborn maintained that New Hampshire has made investments in its transportation infrastructure, even at the peak of the recession.

Sen. Martha Fuller Clark (D-Portsmouth) countered that the bill would ensure the state's economy remains competitive. She cited aging infrastructure, such as the Sarah Mildred Long Bridge, which remains a key economic link.

The Senate action has fiscal ripples, too, for the state budget soon to be negotiated and finalized by Senate and House leaders. Some senators, during the debate Thursday, said that the Senate moving to indefinitely postpone the gas tax bill was retribution for the House voting Wednesday to kill the Senate-passed casino bill.

In other business Thursday, the Senate voted 13-11 to kill House Bill 659, which proposed raising the cigarette tax by 20 cents per pack; defeated House Bill 390 to allow companion dogs in outdoor areas of restaurants; and rejected a bill to institute a state minimum wage – the state established a minimum wage in 1949, but it was the GOP-led Legislature abolished it in 2011; the federal minimum wage of $7.25 per hour remains.

House Republican Leader Gene Chandler (R-Bartlett) hailed that vote in a statement:

"I would like to commend the Senate for voting to ITL HB659 and killing the increase in the tobacco tax. The tobacco tax is a regressive tax that makes businesses less competitive to begin with. Raising the tax by 20 cents would cause our state to lose revenue in many areas. Not only will it hurt revenue, but considering the state of our economy, the last thing businesses on the borders need is a tax increase that drives consumers away. When consumers come to New Hampshire to purchase tobacco because of the lower tax rate, they also purchase non-tobacco products. Raising the tax will encourage consumers to go elsewhere, and make it more difficult for businesses to succeed and grow."

Sen. Chuck Morse (R-Salem) argued the increase in tobacco taxes would have eroded a competitive advantage for businesses, especially in the southern part of the state.


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