Today, the Division of Taxation has updated the ST-4ZEV form with clearer explanations for purchases and created a separate ST-4ZEV form for leases. The new form for leases allows dealerships to simply include the taxable amount and the sales tax collected. The forms can be found HERE, under Latest News and Updates.
The new ST-4ZEV – Partial Exemption Certificate and Sales Tax Worksheet and new ST-4ZEV for leases must be retained in the deal jacket for at least four (4) years in case of audit.
The revised ST-4ZEV NOW requires the signature of the customer. The previous version required the dealership to mail the form to the Division, and only required a dealer certification.
On October 1, 2024, the Division began phasing out the Sales and Use Tax exemption for retail purchases, lease and rental of zero emission vehicles (ZEVs). 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%
For additional information on the ZEV sales tax exemption phaseout, you can follow the links below:
- 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 a FAQs page 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 NJ CAR Director of Legal & Regulatory Affairs Greyson Hannigan at [email protected] or (609) 883-5056, Ext. 340.