NJ SALES & USE TAX: EXEMPTION FOR ZERO EMISSION VEHICLES PHASED OUT

The New Jersey sales and use tax exemption for zero emission vehicles is phased out beginning October 1, 2024. Specifically, the exemption currently provided for sales of zero emission vehicles is phased out as follows:

  • a tax is imposed at the rate of 3.3125% on sales of zero emission vehicles from October 1, 2024, but
    before July 1, 2025; and
  • beginning July 1, 2025, a tax is imposed at the statutory rate set forth in C.54:32B-3, which is currently 6.625%.

In addition, the annual sales tax holiday for certain retail sales of computers, school computer supplies, school supplies, school instructional materials, and sport or recreational equipment is repealed. Thus, the annual sales tax holiday will no longer occur and sellers should charge sales tax on all taxable items.

Ch. 19 (A.B. 4702), Laws 2024, effective June 28, 2024

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