This bill amends New Jersey's Luxury and Fuel-Inefficient Vehicle Surcharge (LFIS) by increasing the price threshold for new luxury passenger automobiles from $45,000 to $70,000. The LFIS is a one-time fee of 0.4 percent imposed on new passenger vehicles that either exceed this sales or lease price or have a fuel efficiency rating of less than 19 miles per gallon. Additionally, the bill mandates that the Director of the Division of Taxation adjust this fee every three years based on the Consumer Price Index for All Urban Consumers (CPI-U), ensuring that the fee remains relevant to inflation.

The bill also specifies that the adjusted fee must be added to the sales or lease price of the vehicle and rounded to the nearest whole dollar. Furthermore, the Director is required to publish the updated fee amount on the division's website by December 1 of the year before the new fee takes effect. This legislative change aims to modernize the LFIS and ensure it reflects current economic conditions while promoting fuel-efficient vehicles.

Statutes affected:
Introduced: 39:3-8.3, 39:3-8.4