The New Jersey Division of Taxation (“Division”) has clarified that the new ST-4ZEV – Partial Exemption Certificate and Sales Tax Worksheet 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.