No sales tax in NH draws MA shoppers

GREENFIELD, Mass (WWLP) - Some Massachusetts residents cross the state line to shop because New Hampshire has no sales tax.

If you buy a $100 item in Massachusetts you'd pay that plus a 6.25% sales tax. In New Hampshire... just the ticket price. And for many a few dollars they can save in sales tax still means a lot.

Just over the border in New Hampshire, shoppers don't pay any sales tax. An opportunity for Massachusetts residents who live close by to save some money.

Ken Bacigalupo of Greenfield told 22News he goes to New Hampshire frequently to shop. He said “It was over $1,000 in Mass. So that's why I came up here.”

Greenfield is less than 30 minutes from Hinsdale. But many shoppers told 22News even after paying for gas, the money they save, especially on big ticket items like a TV, makes their trip worthwhile.

Recently Mass. Governor Deval Patrick proposed decreasing the sales tax to 4.5%.

Richard Rockstroh of Colrain said “Being retired, I'm very concerned about taxes, so any decrease in taxes is going to be helpful for me because I'm on a fixed income.”

But when it comes to making big purchases - like buying electronics... or buying groceries for the whole family, many people said they will still go to NH.

They say with the increased payroll tax, they need to save wherever they can.

Bacigalupo said “I'd buy some things in Mass. But still, 4% on $1,000. That's a lot of money. Every penny counts. I've got two kids, so I have to save any way I can.”

Penelope Hiller of Mattapoisett said “I'm not happy at all. I'm wondering where all the gas tax money has gone. Our roads are a mess down there. It's just frustrating. Everybody is frustrated.”

Under the new plan, all proceeds from sales tax would go to a public works fund that will maintain and improve highways, bridges and public transit.