Date: October 23, 2024Attorney: Martin D. Hauptman
The New Jersey Division of Taxation has updated its frequently asked questions regarding the phaseout of the Zero Emission Vehicle (ZEV) exemption. As part of New Jersey’s commitment to promoting sustainable transportation, these updates clarify important aspects of the exemption that will affect potential ZEV purchasers.
Key Changes and Important Information:
- Phaseout Schedule: Effective October 1, 2024, the current ZEV exemption will begin to phase out. Starting on this date, purchasers of zero emission vehicles will be required to pay a tax rate of 3.3125% on their purchases.
- Eligibility for Pre-Phaseout Exemption: To benefit from the exemption before it phases out, buyers must ensure they take delivery of their ZEVs before October 1, 2024. This means that the order date is not relevant for the exemption; only the date of delivery will determine eligibility.
- Implications for Buyers: It is crucial for prospective buyers to plan their purchases accordingly. Those looking to avoid the new tax should aim to finalize their transactions and take delivery of their vehicles prior to the implementation date.
For additional details and tax advice, please contact Martin D. Hauptman at (973) 243-7912 or via email at mhauptman@mblawfirm.com