New bill would limit federal exemptions on New Hampshire gas tax

Monitor staff
Wednesday, March 16, 2016
State lawmakers have a message for the federal government: Pay your fair share. 

U.S. agencies and diplomatic personnel are currently exempt from paying the New Hampshire gas tax, set at 22 cents per gallon. The carve-out cost the state an estimated $335,406 in revenue during the 2015 fiscal year. 

Now, the Republican-led Senate is poised to pass a bill Thursday that would limit the federal exemption to the U.S. armed forces only. The change would affect the U.S. Postal Service and other federal fleet vehicles.

“Ten to 12 other states have taken similar action to close a loophole that allows the federal government to evade paying their fair share of state road toll taxes,” said Sen. Dan Feltes, a Concord Democrat and sponsor of the bill . 

The state has been starved for gas tax revenue in recent years as vehicles have become more fuel efficient. Gas tax revenue helps pay for road and bridge maintenance. 

Lawmakers raised the gas tax by four cents in 2014. The House considered imposing a new fee on fuel efficient vehicles this year, but the proposal was quickly killed after it faced opposition from those who said the charge would dissuade people from buying environmentally friendly cars.

(Allie Morris can be reached at 369-3307 or at

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