TRENTON, NJ – A new measure introduced in the New Jersey Assembly would cut the state sales tax on used motor vehicles by 50 percent, aiming to make car ownership more affordable amid high vehicle prices and interest rates.
Assembly Bill 6010, sponsored by Assemblyman Robert Auth and co-sponsored by Assembly members John V. Azzariti Jr., Antwan L. McClellan, Erik K. Simonsen, and Gregory E. Myhre, would reduce the sales and use tax applied to used car purchases statewide.
The proposal comes as both vehicle costs and financing expenses remain elevated, placing strain on working families who rely on used cars for transportation.
Key Points
- Bill A6010 would reduce the state sales and use tax on used motor vehicles by 50 percent.
- The measure is designed to provide financial relief to consumers buying pre-owned cars.
- Lawmakers say the cut could stimulate auto sales and support small dealerships.
Tax relief for used car buyers
Currently, New Jersey applies the standard 6.625 percent sales and use tax rate to most vehicle purchases. Under the proposed bill, buyers of used motor vehicles would pay only half that rate, effectively lowering the tax burden to about 3.3125 percent.
Sponsors argue the change would directly benefit lower- and middle-income residents, many of whom depend on used vehicles for work and daily life. They also note that the bill could help local auto dealers remain competitive with neighboring states that impose lower taxes on used car transactions.
Economic and fiscal considerations
While the bill could reduce tax revenues, supporters contend that it would boost sales volume and generate broader economic activity through related industries such as repair shops, insurance, and registration services.
With the average price of a used vehicle in New Jersey now exceeding $25,000, the proposed tax reduction could save consumers several hundred dollars per purchase.
Legislative path ahead
Assemblyman Auth, representing Bergen and Passaic counties, said the legislation is intended to “put money back in the pockets of everyday drivers.” Co-sponsors echoed that sentiment, framing the measure as a response to inflation and transportation costs that have outpaced wage growth.
The bill will be reviewed by the Assembly committees overseeing taxation and budget matters before advancing to the full Legislature for consideration.
If enacted, the measure would mark one of the most significant targeted tax cuts for consumers in recent years, directly addressing affordability in New Jersey’s used car market.
