Thursday, July 28, 2005
Subsidizing Massholes.
New Hampshire has long lured Massachusetts residents with low-priced liquor and other bargains. Now drivers can score another deal: a toll transponder for only $5.
The Massachusetts Turnpike Authority charges $27.50 for a Fast Lane transponder, the steepest fee of the 10 states that belong to the E-ZPass toll-collection network that stretches from Maine to Virginia. That high charge has long riled some area drivers who have steadfastly boycotted the Fast Lane program, which allows them to pay tolls without stopping at a booth.
The $5 introductory special offered by the New Hampshire Department of Transportation has been too good for many to pass up: More than 5,000 Massachusetts motorists have snagged a Granite State toll tag since they went on sale a month ago.
New Hampshire had planned on offering the $5 bargain until May 1, 2006. But lawmakers voted to cut short the discounts, worried about a rush of out-of-staters snatching up the transponders and creating a financial hit for the Transportation Department. Each tag costs the agency $23.85, plus a few dollars to process the order and mail the devices.
More than 160,000 transponders have been sold since orders began June 20, with about 90,000 accounts established. (Families and companies are able to set up one account for their multiple E-ZPass tags). The discounted initial offering has already cost the department, which brings in about $66 million in toll revenue annually, some $3.5 million.
''For every transponder New Hampshire is selling, we're losing $22," said Bill Boynton, Transportation Department spokesman.
from boston.com news