Beginning today, consumers in New Jersey who are purchasing an electric vehicle will have to pay a 3.3% sales tax charge, as the previous 0% tax is now phased out.
As earlier reported, a phase-out of the popular Electric Vehicle Tax Exemption was included in the Fiscal Year 2025 state budget signed by Governor Phil Murphy in June.
As of October 1st, all EV buyers in the state will have to pay a 3.3% sales tax and starting July 1, 2025, all electric vehicles sold will be subject to New Jersey’s sales tax of 6.625%.
The sales tax exemption has been in place since 2003 but with a skyrocketing number of electric vehicles in the state, combined with declining revenues, lawmakers struck the exemption.
The phase-out is expected to bring in $75 million to the state’s coffers.
Additionally, there is also a new $250 registration fee for electric vehicle owners in the state.
Electric Vehicle sales are slowing down as it is, and adding sales tax to them will not help matters; However their manufacturing cost is much lower than a gas vehicle as EV’s contain less than half the parts of a gas vehicle & they are manufactured in giga factories requiring less than half the amount of employee’s , so what I think is going to happen as a result of this taxation is that manufacturers will further discount EV’s and offer to pay the customer sales tax.
Cost of manufacturing is actually much higher than gas vehicles. The Democrats have been subsidizing production, and offering specialties to make them affordable. Now the subsidies are running out, so you need to pay real prices.
Yup , just like NY . Keep spending ,& just raise taxes !!!!
I don’t like those type of vehicle guess how much you have to pay for their battery?
$25,000