This bill amends the current sales and use tax exemptions for zero emission vehicles in New Jersey. It phases out the existing exemption by imposing a tax of 3.3125 percent on sales of zero emission vehicles sold between October 1, 2024, and June 30, 2025. Starting July 1, 2025, the sales and use tax will be applied at the standard rate of 6.625 percent. Additionally, the bill requires motor vehicle franchisors and franchisees to report the number of zero emission vehicles sold and the tax amounts remitted to the Division of Taxation.

Furthermore, the bill repeals the annual sales tax holiday for certain school supplies and sport or recreational equipment, which was previously established by P.L.2022, c.21. This holiday allowed for tax-free purchases during a ten-day period leading up to the first Monday in September. The changes proposed in this bill align with 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