Motor Vehicle Update

Motor Vehicle Operation UpdateAfter surviving the “Perfect Storm”, flooding of NJ CAR’s building and the State shutdown, NJCAR is happy to report that the Agency and the Online Offices are back on track and up-to-date in their processing of Motor Vehicle transactions.Faced with a backlog of more than 1,000 bags of dealer motor vehicle work, NJ CAR staff came in early and stayed late to eliminate the backlog in a little over a week!Thank you to all the dealerships who were patient throughout this unique situation.Increase in New Jersey Sales TaxEffective July 15, 2006, the New Jersey Sales Tax has been increased to 7%. Included with this memo is a Q&A addressing the most common questions relating to this recent change.Questions & Answers- New Jersey Sales Tax Increase & Supplemental Titling Fee

New 0.4% Supplemental Titling Fee and Required MVC FormBeginning July 15, 2006, the law requires that dealers not only collect the increased rate of sales tax, but now they must itemize and collect (where applicable) the 0.4% Supplemental Titling Fee and hold such collections for payment to the State. There was, however, NO mandate that dealerships have their DMS Systems, or their Retail Order Forms, Lease Agreements, etc. revised by July 15. Those changes can be made as time permits.Dealerships are required to complete a new MVC form—“Application for Certificate of Ownership for a New Vehicle” (Form #OS/SS-14 (7/06)—for every MCO that is submitted to MVC for processing. A link to the new form can be found following this paragraph. This form is NOT to be used if the source document is a title document. This requirement also applies to those dealerships using one of the Online Systems (CVR or triVIN). This form is not to be confused with the existing “Application for Certificate of Ownership” (MV Form ISM/SS-7, commonly referred to as a “CO7”). Dealerships will continue to use that form for issuance of a NewJersey title when the source document is a foreign (out-of-State) title. Application for Certificate of Ownership for a New Vehicle

Instructions for Completion of the “Application for Certificate of Ownership for a New Vehicle”

Form OS/SS-14 (7/06)If the MCO was originally issued in another dealership’s name and subsequently assigned to your dealership, this formis still required to be completed.Section A – Dealership Information

The “New Vehicle Dealership” is the business name under which the dealership is licensed by MVC. Please check the dealership’s Motor Vehicle Wall License for the exact name. The Motor Vehicle Dealer Identification Number is located in the lower right hand corner on the dealership’s MVC Wall license.In the block to the right of Section A—“Place Dealer Stamp Here”—DO NOT use the dealership’s NewJersey Sales Tax Stamp. This area is to include the name and address of the dealership. MVC will allow the dealership to stamp this information rather than write it on every form. The Dealership Name must be the business name under which the dealership is licensed by MVC. If you want to include a “trade name,” you may do so in addition to the dealership’s licensed name. It may be advantageous for your dealership to obtain a self-inking stamp with the following information:Licensed Dealership NameTrade Name (Optional)Dealership AddressMotor Vehicle ID Number

Section B – Vehicle InformationInclude the vehicle information along with the complete 17-digit Vehicle Identification Number. Indicate the average EPA mpg rating determined by adding both city and highway miles and dividing by two.Section C – This Section Takes the Place of the Dealership’s Sales Tax Stamp. There is No Need to Include the Dealership’s Stamp.1. Vehicle Gross Sale/Lease Price – Enter the GROSS amount, EXCLUDE trade-in, manufacturer’s rebates or additional Handicapped Driver Adaptive Equipment.2. Vehicle Net Sales/Lease Price – The form indicates that this is the figure after trade-in or manufacturer’s rebates. THIS IS A MISPRINT. You do not deduct the manufacturer’s rebates. 3. 7% Sales Tax amount collected.4. Exemption Code (if applicable).Section D – If the Answer to any of the following Four (4) Items in this Section is “Yes,” You do NOT Collect the 0.4% Supplemental Titling Fee.1. There is an exemption for high-valued vehicles ($45,000 and above) that are also fuel-efficient vehicles with an average EPA rating over 40 mpg. Both must apply for the exemption.2. Zero Emission Vehicle.3. Commercially Registered Vehicles.4. Purchaser or Lessee is a Non-Resident and a New Jersey Title only is issued to secure the lien. Please note, if the vehicle is titled and registered in New Jersey, the exemption no longer applies.Section E – The 0.4% applies to Passenger Vehicles, Light Trucks, SUV’s and Vans, including those Vehicles registered as Code 15. This is not applicable to Vehicles registered as “Commercial.”If the sale/lease price is equal to or greater than $45,000 and the vehicle has an EPA MPG rating of LESS than 40 MPG, you must charge the 0.4% Supplemental Titling Fee. (Vehicles that have an EPA MPG rating of 40 or greater are exempt.).If the gross sale/lease price is less than $45,000 and the vehicle has an average EPA MPG less than 19, you must charge the 0.4% Supplemental Titling Fee.Section F – Authorized SignaturesThe “Application for Certificate of Ownership of a New Vehicle” must be signed by a representative of the dealership that is currently listed on the Signature Card on file in the Business License Services Unit at MVC in Trenton. If you need to update the information on the current Signature Card, a copy is included with this memo. Please keep in mind that ALL authorized representatives of the dealership must sign the Signature Card. The newly completed form takes the place of the one on file with MVC. This newly completed form must be submitted to MVC at the following address (include a copy of the dealership’s current Wall License along with the completed Signature Card).New Jersey Motor Vehicle CommissionBusiness License ServicesP. O. Box 171Trenton, NJ 08666The Supplemental Titling Fee must be separately disclosed on the dealership’s Retail Order Form and is NOT subject to New Jersey Sales Tax.Important Information for Online Systems DealershipsAs of the date of this memorandum, the Online Vendors (CVR and triVIN) have not received the specifications from MVC. Once they have the system requirements, both vendors will need to make significant programming changes in order to automate this form. As soon as practicable, this document will become available. Please note: THE NEW MVC FORM—“Application for Certificate of Ownership for a New Vehicle,” Form OS/SS-14 (7/06)—DOES NOT TAKE THE PLACE OF THE AUTOMATED MCO ASSIGNMENT THAT YOU ARE CURRENTLY USING. These two forms serve two separate purposes. The Sales Tax Stamp on the MCO Assignment Form is not required to be completed or signed since the new “Application for Certificate of Ownership for a New Vehicle,” Form OS/SS-14 (7/06) includes that information.In addition to the ability to process MV transactions on a daily basis, including Saturdays and most State holidays, dealerships using either of the Online Systems (CVR and triVIN) were able to process their MV transactions even when the State was recently shut down and the Motor Vehicle Agencies were closed (including NJ CAR Dealer Agency). If your dealership has not investigated the Online Systems, now might be the right time to do so.Keep in mind, the Online Processing Fee charged by the Online vendors, can be passed through to the dealership’s customer. It CANNOT be included in the Motor Vehicle title and registration fees, it MUST be separately stated on the dealership’s Retail Order Form and disclosed to the customer.