NJ Anti-Incentives for EV Adoption

[ScouterJohn]

As I was checking if the old NJ $4K state rebate for buying or leasing a new, eligible zero-emission vehicle got renewed for 2024 (it did not), I came across an anti-incentive. New Jersey signed a law approving a punitive new EV registration fee – and at $250, it's the highest in the country? New Jersey's EV registration fee kicks in July 1, and then rises by $10 each year before it caps out at $290 in July 2028. Apparently this is to make up for the fact that we EV owners are no longer paying the Gas Tax and contributing to the Transportation Fund.

For any of the recent CT NJ buyers, was your over $100K CT vehicle still totally NJ State Sales Tax free? That is worth something!

I guess we can’t all live in Colorado and enjoy their $5K refundable state tax credit.

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[mcdull]

This makes EV registration fee goes up by 1K starting July 1st since new EV is registered for 5 years in NJ. EV is still sales tax exempt but they introduced a phase-out which is supposed to start July 1st but it got delayed for 3 months. Nobody knows any details about the phase-out yet.

 

[ScouterJohn]

This makes EV registration fee goes up by 1K starting July 1st since new EV is registered for 5 years in NJ. EV is still sales tax exempt but they introduced a phase-out which is supposed to start July 1st but it got delayed for 3 months. Nobody knows any details about the phase-out yet.

I thought I read that we had to pay four years up front but when I went back, I didn't see that. It kinda feels like the NJ State sales tax...

 

[mcdull]

I thought I read that we had to pay four years up front but when I went back, I didn't see that. It kinda feels like the NJ State sales tax...

Yes, it’s paid upfront and the whole math works out to be 1K more based on an email Tesla sent to people in NJ to encourage taking delivery this quarter.

 

[Woodrick]

As I was checking if the old NJ $4K state rebate for buying or leasing a new, eligible zero-emission vehicle got renewed for 2024 (it did not), I came across an anti-incentive. New Jersey signed a law approving a punitive new EV registration fee – and at $250, it's the highest in the country? New Jersey's EV registration fee kicks in July 1, and then rises by $10 each year before it caps out at $290 in July 2028. Apparently this is to make up for the fact that we EV owners are no longer paying the Gas Tax and contributing to the Transportation Fund.

For any of the recent CT NJ buyers, was your over $100K CT vehicle still totally NJ State Sales Tax free? That is worth something!

I guess we can’t all live in Colorado and enjoy their $5K refundable state tax credit.

It's indeed the same type tax that gas buyers pay per gallon. Since you don't buy gas for an EV, you need to be a parity.

I think that the NJ tax should be even higher, yall got some roads that really need fixing!

 

[carsly]

I was happy to take delivery of my Cybertruck in NJ before this new $1K EV penalty/super-high registration fee goes into effect.

 

[ScouterJohn]

I was happy to take delivery of my Cybertruck in NJ before this new $1K EV penalty/super-high registration fee goes into effect.

Excellent to squeak in under the wire! I would have loved to but no VIN yet. Enjoy your new ride!

 

[mcdull]

It's indeed the same type tax that gas buyers pay per gallon. Since you don't buy gas for an EV, you need to be a parity.

I think that the NJ tax should be even higher, yall got some roads that really need fixing!

Gas tax is pay per mile driven. EV tax is a blanket fee that assumes you drive certain miles. Billing your fair share based on mile is more fair than a flat fee which is often based on high mileage that most people don't drive in a year.

 

[Woodrick]

Gas tax is pay per mile driven. EV tax is a blanket fee that assumes you drive certain miles. Billing your fair share based on mile is more fair than a flat fee which is often based on high mileage that most people don't drive in a year.

I don't disagree, We went through the argument here in Georgia many years ago.

The alternative is the odometer police. Do you want to have to take your vehicle in and the odometer checked every year?

 

[mcdull]

I don't disagree, We went through the argument here in Georgia many years ago.

The alternative is the odometer police. Do you want to have to take your vehicle in and the odometer checked every year?

To be fair for both ICE and EV drivers, I think showing odometer is better. Upload/share a photo of your odometer at each tab renewal, showing that day's newspaper/CNBC's front page in the same frame (so that you are not showing an old photo)

 

[carsly]

Excellent to squeak in under the wire! I would have loved to but no VIN yet. Enjoy your new ride!

I actually changed my config from all seasons and tactical grey to all terrains and white in order to have a chance of squeezing in before the registration fee increase. Had a VIN five days later and the truck four days after that. So, earlier Cybertruck and saved nearly $1,000!

 

[mcdull]

I was happy to take delivery of my Cybertruck in NJ before this new $1K EV penalty/super-high registration fee goes into effect.

Lucky you! I would have done the same if it was a non-FS. Funny thing is the $1K has not been passed into law yet b/c they are still scrambling to get the 2024 Budget passed before July 1st. Given Democrats have control in the chamber, whatever they put thru will pass at the end. I was hoping they would get this 1K fee and the sale tax exemption phase-out removed given the public backlash. However, these 2 items are low on their priority list so they will most likely stay in the 2024 budget.

 

[carsly]

Lucky you! I would have done the same if it was a non-FS. Funny thing is the $1K has not been passed into law yet b/c they are still scrambling to get the 2024 Budget passed before July 1st. Given Democrats have control in the chamber, whatever they put thru will pass at the end. I was hoping they would get this 1K fee and the sale tax exemption phase-out removed given the public backlash. However, these 2 items are low on their priority list so they will most likely stay in the 2024 budget.

Agreed, very frustrating. The sales tax exemption for EV's has been huge and often overlooked. It really changes the affordability equation helping substantially reduce the upfront delta vs ICE along with the on again/off again state-level incentives for certain EV purchases that they monkey with every year and sometimes is only in place for a couple of months.

 

[mcdull]

Agreed, very frustrating. The sales tax exemption for EV's has been huge and often overlooked. It really changes the affordability equation helping substantially reduce the upfront delta vs ICE along with the on again/off again state-level incentives for certain EV purchases that they monkey with every year and sometimes is only in place for a couple of months.

Good thing is they delayed the phase-out until Sep. 31, 2024. So hopefully I take a delivery of a non-FS before then. Since it's a 3-year phase-out, I was guessing it would be 6.625%/3 for 1st year, (6.625%/3) *2 for 2nd year, and 6.625% for the 3rd year. Just my guess. Nobody knows because the gov refuses to give out any details.

Here is source about the 3-month delay. :https://www.nj.gov/treasury/news/2024/05152024.shtml

 

[Killlbox]

It's indeed the same type tax that gas buyers pay per gallon. Since you don't buy gas for an EV, you need to be a parity.

I think that the NJ tax should be even higher, yall got some roads that really need fixing!

It’s adorable to think that the tax money in NJ will go to roads and not vacation homes for politicians.

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