As previously announced, the Division of Taxation began phasing out the Sales and Use Tax exemption on retail purchases of zero emission vehicles (ZEVs) YESTERDAY. This phase-out process will occur in two stages:
- Beginning October 1, 2024, through June 30, 2025, a tax rate of 3.3125% will be imposed on the sale of ZEVs;
- As of July 1, 2025, zero emission vehicles will be taxed at the full statutory rate, which is currently 6.625%.
Treasury just made NJ CAR aware, this afternoon, that ZEV dealers will now be required to complete Form ST-4ZEV, to calculate the Sales Tax due on sales, rentals, or leases of ZEVs, and submit it directly to the Division of Taxation during the first portion of the phase-out from October 1, 2024, through June 30, 2025. Dealers can then use the information on the completed ST-4ZEV forms to correctly file their monthly or quarterly Sales Tax returns.
ZEV dealers should mail the completed ST-4ZEV forms to the Division and keep a copy for their records.
- Treasury has recently added details on Sales Tax for ZEVs to their website: NJ Division of Taxation – Sales Tax Exemption – Zero Emission Vehicles Exemption
- There is also an FAQ that dealers and the public may find helpful: NJ Division of Taxation – Sales Tax Exemption – Zero Emission Vehicles Frequently Asked Questions
If you have any questions on anything discussed above, please contact Greyson Hannigan, NJ CAR Director of Legal & Regulatory Affairs, at [email protected] or (609) 883-5056 – x340.