Gas tax increase would be tied to consumer price index
CONCORD – A formula using the consumer price index would be used to increase the state’s gas tax under a proposal Senate Transportation Committee Chairman Jim Rausch, R-Derry, will offer next session.
Under the formula, the state’s 18-cent gas tax would increase about 4.2 cents a gallon, which would produce about $30 million in new revenue to be dedicated to transportation projects.
The formula would be reapplied every four years to adjust the gas tax to the rate of inflation.
Raush said he will not know what the increase will be until February when the 2013 consumer index is established, but he believes it would constitute an increase slightly over 4 cents.
“I’m trying to restore the purchasing power that has been eroded since the last tax increase in 1991,” Rausch said. “I want to be very clear this is a small step.”
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