West Lebanon, New Hampshire - April 27, 2011
A gas station is a good place to get a grip on buying habits in the Upper Valley. And only one word is needed to explain why a station in West Lebanon, N.H., is more crowded on a random Wednesday morning compared to one just a mile away in White River Junction, Vt.
"It's cheaper," said Steve Henderson of Sharon.
On this day-- about 4 cents cheaper for a gallon of gas. An added incentive to fill up in the Granite State, which has long had the advantage over bordering states because of its lack of sales tax.
"When I am coming down to West Lebanon to get groceries or whatever, I will plan to get gas at the same time as I come down to go shopping," Henderson said.
The same is true for people buying cigarettes.
"Cheaper, a lot cheaper," said Butch Emery of South Royalton. "They are almost nine bucks a pack where I'm at now."
And that is likely to increase. Lawmakers in Montpelier are voting to raise the tax on cigarettes-- possibly an additional 53 cents-- to help balance the books.
"People can't afford it," Emery said. "I know a lot of people who come to New Hampshire just for cigarettes and while they are here get gas or whatever. I mean I live 20 miles up the road but it is worth it coming here."
The excise tax on gas in New Hampshire is currently 18 cents. It's $1.78 for tobacco. In Vermont, the tax on a gallon of gas is 20 cents and it's $2.24 for tobacco.
Lawmakers in New Hampshire have proposed reducing taxes on both tobacco and gas-- 10 cents and 5 cents respectively-- to encourage even more cross-border commerce. Though at least one Granite State senator says neither proposed increase has legs.
"The cigarette tax reduction has been tabled. It was tabled (Wednesday) morning and I don't know what the fate of the gasoline tax reduction would be, but I have a feeling it will not get a good landing in the state Senate. And as Chairman of the Ways and Means Committee, each of these is a blow to revenues and this is the wrong time to be doing it," said Sen. Bob Odell, R-Lempster.
But for consumers the difference is already apparent and tempting to those like Jill Koppers of Thetford who tries to buy local whenever she can.
"Yeah, if the difference is greater that even I would go across the border, so does it concern me? Yes, because that is part of what keeps Vermont strong," Koppers said.
"It's all about the almighty dollar," Henderson said. "They are going to come where it is cheaper."
How much cheaper is in the hands of lawmakers.
Originally a $1 cigarette tax increase was thrown around in Montpelier. But Gov. Peter Shumlin spoke out against the idea, fearing it would drive shoppers across the border.
Adam Sullivan - WCAX News
