More than 20,000 oppose increase in Vermont gas tax

The Vermont Petroleum and Grocers Associations today posted a revised stack of petitions containing more than 20,000 signatures from Vermonters opposing the increase in the gasoline tax proposed by the Shumlin administration and revised by the House Transportation Committee. The petitions were collected in all areas of the state.
‘ What began as an effort to raise awareness of the proposed tax increase has now exploded,’ said Joe Choquette, who represents the Vermont Petroleum Association. ‘ We have long heard from Vermonters that they are very concerned about high gas prices. They appear to be equally upset about the government raising the price.’
The association has urged the legislature to share the burden among other funding sources and to take a close look at spending. ‘ We’ ve learned that the state needs only $12-14 million in new revenue to draw down federal funds. The proposed gas tax increase raises $22 million in the first year. A one-time increase of four cents per gallon would appear to fully meet the federal matching requirements .’
Under the latest plan before the legislature, total state and federal gasoline taxes in Vermont would go from 45.1 cents per gallon today to 51.8 cents per gallon on May 1. The tax would increase automatically with the price and with inflation.
‘ In 2009 the legislature added a two percent sales tax that has now grown from 3.5 to 6.7 cents a gallon,’ according to Jim Harrison of the Vermont Grocers Association. ‘ We’ re not even spending all of the money we raised the last time on infrastructure. Only $25 million of $100 million in bonding capacity has been committed.’
Both groups are particularly concerned about the impact of the higher tax on the gasoline and convenience store businesses in towns along the New Hampshire and Massachusetts borders. Total taxes New Hampshire remain at 38 cents per gallon. Massachusetts’ gas tax totals 41.9 cents.
‘ As the tax difference grows, more and more Vermont businesses are hurt by the difference,’ Choquette said. ‘ Vermonters will drive from farther into Vermont to buy gas in New Hampshire, and they will also buy a lot of their other goods while they’ re there. Vermont economists have repeatedly shown the impact of tax differences at the border.’
A link to the petitions follows:
http://www.vtgrocers.org/files/files/gas.tax.petitions%203.11.13.pdf
(Montpelier, Vt.) The Vermont Petroleum and Grocers Associations 4.9.2012