TRENTON, NJ — In response to the recent legislative action increasing the gas tax and introducing a new fee for electric vehicles (EVs), Jim Appleton, President of the New Jersey Coalition of Automotive Retailers (NJ CAR), has voiced significant concerns. The New Jersey Legislature has approved measures to raise the gas tax and impose a $250 fee on electric vehicles, escalating by $10 annually over the next four years. The intent behind these measures is to fund the Transportation Trust Fund (TTF) for the maintenance of the state’s roads and bridges.
While acknowledging the need for EV drivers to contribute to road and bridge maintenance, Appleton emphasized the potential negative impact of the fees on EV affordability and sales. The upfront payment of motor vehicle fees, including the new EV fee, essentially adds over $1000 to the cost of purchasing an EV in New Jersey. This comes at a time when the state’s proposed budget is set to eliminate the EV sales tax exemption, a crucial incentive for EV buyers.
Appleton warned that these financial measures, aimed at supporting the TTF, might inadvertently hinder the state’s ambitious goal of transitioning to 100% EV sales. By removing incentives and imposing additional costs on consumers, New Jersey risks deterring potential EV buyers, making the state’s environmental objectives more challenging to achieve.