In what will be a true test for the resiliency of the electric vehicle market in New Jersey, starting Tuesday, consumers no longer will receive a full tax exemption incentive to purchase an EV.
From Oct. 1 through June 30 of next year, consumers will get a 3.3125% tax when purchasing, leasing or renting new and used electric vehicles. On July 1 of 2025, the full sales tax of 6.625% will be added to these transactions.
The impact of this measure will be closely watched.
The full sales-tax exemption was first enacted in 2003—one of many incentives to convince a skeptical public to buy an EV.
It has taken two decades, but EV sales are on a steady rise and now make up approximately 10% of all sales. Last year, more than 150,000 EVs were purchased, up from just over 90,000 the year before.
The move comes months after EV owners were hit with a different tax. On July 1, a new $250 registration fee for zero-emission vehicles. That fee will increase annually until it reaches $290 in 2028.
