New jersey's $250 tax shocking to some new car buyers

TRENTON, N.J. — Electric vehicle owners in New Jersey are now required to pay an annual $250 fee, following the enactment of a new law that took effect last year. Now, a year later, EV owners are getting hit with a 20% electricity rate hike on top of their $250 tax.

The law, passed as part of a bipartisan Transportation Trust Fund reauthorization, imposes the additional charge on all vehicles classified as zero emission vehicles (ZEVs) under the California Air Resources Board standards. The fee is intended to ensure that electric vehicle owners contribute to road maintenance funding, which is traditionally supported through gasoline taxes.

According to the New Jersey Motor Vehicle Commission, “Beginning July 1, 2024, the annual fee is $250. The annual fee increases $10 per year for four years thereafter.”

The new charge is applied at the time of initial registration and again at each annual renewal. It is in addition to the standard vehicle registration fee.

The policy addresses a long-standing concern that electric vehicles, while producing no tailpipe emissions, do not pay into the state’s fuel tax system, which is a major source of funding for road and infrastructure repairs.

ZEV owners are now expected to cover a portion of those costs through this new fee structure. By 2028, the annual fee will rise to $290 unless revised.

New Jersey joins several other states that have adopted EV-specific fees in an effort to maintain road funding amid growing electric vehicle adoption.

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