This bill proposes an exemption from the New Jersey sales and use tax for retail sales of used motor vehicles. The definition of a "used motor vehicle" includes passenger motor vehicles, motorcycles, motor homes, and off-road vehicles that have had their title or possession transferred from the original purchaser. The exemption applies regardless of the sale type, including private sales, casual sales, or sales conducted by motor vehicle dealers.

The legislation aims to alleviate the tax burden on consumers purchasing used vehicles, thereby promoting the used vehicle market in New Jersey. The tax exemption will also extend to use tax on out-of-state purchases, making it more financially feasible for residents to buy used vehicles. The act is set to take effect on the first day of the second month following its enactment.