This bill seeks to establish a more equitable tax framework for gas-powered and electric vehicle owners in New Jersey. It introduces an additional annual registration fee of $300 for passenger electric vehicles and $450 for commercial electric vehicles, effective July 1, 2025. In conjunction with these fees, the bill reduces the state tax on highway fuels, lowering the Motor Fuel Tax on gasoline from 10.5 cents to 7 cents per gallon and on diesel from 13.5 cents to 9 cents per gallon. All revenues generated from the new electric vehicle registration fees will be allocated to the Transportation Trust Fund (TTF). The bill also mandates the Chief Administrator of the New Jersey Motor Vehicle Commission to collect these fees and allows the Director of the Division of Taxation to adopt necessary regulations for implementation.

Additionally, the bill requires the Department of Transportation to conduct a feasibility study on alternative revenue sources for the TTF, including options like a mileage-based user fee and taxes on electricity used for charging electric vehicles. This study aims to address potential future revenue shortfalls due to the increasing adoption of electric vehicles and is expected to provide recommendations by August 31, 2026. The bill also lowers the highway fuel cap amount by 33 percent and ensures that the state appropriates necessary funds from the General Fund to support TTF debt service obligations, thereby aiming to maintain adequate funding for transportation infrastructure in New Jersey. The overall goal is to secure the financial stability of the TTF amidst changing transportation dynamics.

Statutes affected:
Introduced: 54:39-103, 54:15B-3