Sales Tax Holiday and Zero Emissions Vehicle Exemption Eliminated in New Jersey

New Jersey enacted legislation on June 28, 2024, that eliminates its annual sales tax holiday after 2024 and phases out the sales and use tax exemption on zero emission vehicles. The 2024 sales tax holiday, for individuals only, will still take place, is scheduled for August 24through September 2, and applies to retail sales of computers, school supplies, and sport or recreational equipment. The sales tax holiday is repealed effective October 1, 2024.

The exemption for zero emissions vehicles will begin phasing out October 1, 2024:

• The sales tax rate will be 3.3125 percent on sales on or after October 1, 2024 and before July 1, 2025.
  
  
• For zero emission vehicles sold on or after July 1, 2025, the sales tax rate will be 6.625 percent.

New Jersey also created a $250 registration fee for electric vehicles that commences on July 1, 2024.

To read the New Jersey Department of Treasury News Release, go to:  https://www.nj.gov/treasury/news/2024/06292024.shtml

If you have questions on New Jersey’s sales tax or other SALT matters, please contact HBK’s SALT Advisory Group at hbksalt@hbkcpa.com.