Shoppers reacted with a mix of anger and disbelief to a court dispute between Massachusetts and a Connecticut-based retailer that might result in a 5 percent sales tax for Bay State residents making purchases in New Hampshire.

On a quiet afternoon inside the Mall at Rockingham Park, consumers – many from across the state border to the south themselves – came out staunchly against the idea that Massachusetts residents might now have to look forward to paying a sales tax, even while doing their shopping out of state.

The reactions came as the Massachusetts Department of Revenue issued an order to Town Fair Tire Centers – which has locations across New England, including New Hampshire – to collect a 5 percent use tax on Massachusetts residents making purchases out of state.

For Haverhill, Mass., residents Jim Schiavoni and Helen Hoffman, paying a potential sales tax on their cross-border purchases would take all of the incentive out of making the 15-minute drive to Salem.

“It’s not fair, we pay plenty of taxes in Massachusetts and now they are raising those too,” Schiavoni said. “That would be like a tax for just being from Massachusetts … I’m against it.”

He also questioned whether requiring customers to verify their state of residence would cause a slowdown at the cash register and create headaches for out-of-state business bookkeepers.

Hoffman, who shops occasionally at the mall and at stores in the surrounding area, said she could easily see her friends who drive up from Massachusetts to buy cigarettes and alcohol just staying home.

“I live in Massachusetts and I already can’t afford it,” she said. “You can’t barely afford anything.”

While Joe O’Brien, a native of Dracut, Mass., does his shopping in Salem because of the proximity to his house and not TAXES: Town Fair Tire could charge 5 percent tax Continued from page A-1 Derrick Perkins Photo Town Fair Tire may require Massachusetts residents to pay a 5 percent tax on purchases made in New Hampshire.

Town and School District Meetings because of the tax-free savings, he said consumers ought to have the freedom to shop where they want, regardless of the state tax. Raising taxes would be detrimental for the slumping economy as well, he said.

“I don’t think it’s right to raise taxes. It’s not good for anybody. We are trying to save as much as we can,” O’Brien said.

Given the economy, Mike Handy – a newcomer to New England originally from New Jersey who resides in Andover, Mass. – said he wasn’t surprised by the steps the commonwealth was taking to recover lost taxes.

“Every state is looking for money wherever they can. New Hampshire is talking about tolls and Massachusetts is talking about gambling,” Handy said. “(Tax-free shopping) is good for Southern New Hampshire. If it’s not tax free I doubt shoppers would come unless it’s a convenient (distance).”

Gov. John Lynch has announced that the state will file a brief in the court dispute. The retailer has already lost its case at the Massachusetts appellate tax board and is now being heard in front of the Massachusetts Supreme Court.