4-cent gas tax increase takes effect in New Hampshire; revenue to fund road repairs

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CONCORD, New Hampshire — A 4-cent tax in New Hampshire on gasoline and diesel fuel has taken effect, the first increase since 1991.

Gov. Maggie Hassan signed a bill in May that raises the tax as of Tuesday. It's still the lowest in New England.

The tax helps fund highway improvements for two years, then earmarks about half the proceeds to pay off $200 million in borrowing to finish the Interstate 93 expansion.

Once the debt is paid off in roughly 20 years, the tax increase would expire.

On Monday, the conservative groups Americans for Prosperity and Citizens for a Strong New Hampshire held a protest at a Hooksett gas station, saying the increase will hurt motorists and businesses.

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