This bill amends current law to phase out the sales and use tax exemption for zero emission vehicles and repeals the annual sales tax holiday for specific school supplies and recreational equipment. The new provisions specify that zero emission vehicles sold on or after October 1, 2024, will be subject to a tax rate of 3.3125 percent until June 30, 2025, after which the standard sales tax rate of 6.625 percent will apply. Additionally, the bill mandates that motor vehicle franchisors and franchisees report the number of zero emission vehicles sold and the tax amounts remitted to the Division of Taxation.

Furthermore, the bill repeals the sales tax holiday established by P.L.2022, c.21, which previously allowed for tax-free sales of computers, school supplies, and recreational equipment during a designated ten-day period leading up to the first Monday in September. This legislation aligns with proposals outlined in the Governor's Fiscal Year 2025 budget recommendations, aiming to adjust tax policies related to zero emission vehicles and sales tax holidays.

Statutes affected:
Introduced: 54:32B-8.55