New Jersey Zero Emission Vehicles Exemption Information

As a pre-owned dealership, CarVision wishes to extend an update made to the New Jersey state sales and use tax exemption for zero-emission vehicles (ZEVs). In this, the state's division of taxation is no longer offering this tax exemption.

This information and relative implementation has already come into effect, and is thereby applied to all ZEVs as of October 2024.

In order to support the purchase or lease of zero-emission vehicles, the state allowed for a sales and use tax exemption to serve as an enticement to shoppers - even those coming in from Philadelphia and Delaware.

At point of sale, this tax exemption made the overall cost of zero-emission vehicles more palatable and well within reach for many Trooper families. This meant that "sales" to include rental and lease of such vehicles weren't subject to state taxation in this regard.

However, this incentive is being phased-out between now and June 2025 toward full implementation thereafter. And so, the taxation rate for qualifying zero-emission vehicles relying solely on electric power sees a tax rate of 3.3125-percent until June 2025.

Then, the sales and use tax rate climbs to 6.625-percent from July 2025 and onward near King of Prussia and Norristown. And to certainly qualify before this increase, the seller should complete the partial ZEV exemption worksheet for proper documentation and toward calculating the sales tax now in-effect.

Given this latest development, now is the time to shop our pre-owned inventory of zero-emission vehicles before any tax percentage hikes-up next year. This selection spans pre-owned Tesla SUVs and sedans, Subaru Solterra all-electric SUVs, Jeep Wrangler 4ex and Kia models whose powering is electrically produced alone.

Bear in mind, hybrids have never qualified for this sales and use tax exemption.

With legalese to mind surrounding this New Jersey tax update, be sure to contact us for more information.

As mentioned, it's never been a better time to shop zero-emission vehicles on both sides of the Delaware River.