This bill seeks to establish a more equitable tax framework for gas-powered and electric vehicle owners in New Jersey by introducing new annual registration fees for electric vehicles. Specifically, it sets a 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 rates on highway fuels, lowering the gasoline tax from 10.5 cents to 7 cents per gallon and the diesel fuel tax from 13.5 cents to 9 cents per gallon. The revenue generated from the electric vehicle registration fees will be allocated to the Transportation Trust Fund (TTF).

Additionally, the bill mandates the Department of Transportation to conduct a feasibility study on alternative revenue sources for the TTF, addressing potential declines in revenue from traditional fuel taxes. This study will explore options such as a mileage-based user fee, additional registration fees for motor vehicles, and taxes on electricity used for charging electric vehicles, with findings due to the Governor and Legislature by August 31, 2026. The bill also includes provisions to lower the highway fuel cap amount by 33 percent and requires the state to allocate necessary funds from the General Fund to support TTF debt service obligations, ensuring ongoing funding for transportation infrastructure in New Jersey.

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