New JerseyA4702220th Legislature (2024-2025)HouseWALLET

Phases out sales and use tax exemption on zero emission vehicles; repeals annual sales tax holiday for certain school supplies and sport or recreational equipment.

Sponsored By: Eliana Pintor Marin (Democratic), Paul A. Sarlo (Democratic), Benjie E. Wimberly (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 3 costs, 0 mixed.

Zero-emission vehicle buyers pay sales tax

New Jersey phases out the sales tax exemption for qualifying zero-emission vehicles. Sales from October 1, 2024, through June 30, 2025, face a 3.3125% tax. Beginning July 1, 2025, sales face the standard state sales tax rate. Eligible vehicles must meet California Air Resources Board zero-emission standards for their model year, excluding substitutes for pure zero-emission vehicles. The state environmental commissioner must certify eligible makes and models to the State Treasurer.

Shoppers lose school and sports tax holiday

The law ends New Jersey’s annual sales tax holiday effective June 28, 2024. Shoppers no longer get that holiday’s tax exemption for certain school supplies and sport or recreational equipment.

Vehicle businesses must report sales taxes

New Jersey motor vehicle franchisors and franchisees must file annual reports with the Division of Taxation before March 1. Reports must list zero-emission vehicles sold in the state during the prior calendar year and sales taxes remitted on them. The reporting rule took effect June 28, 2024. It does not directly change household taxes or benefits.

Sponsors & Cosponsors

Sponsors

  • Eliana Pintor Marin

    Democratic • House

  • Paul A. Sarlo

    Democratic • Senate

  • Benjie E. Wimberly

    Democratic • Senate

Cosponsors

  • Verlina Reynolds-Jackson

    Democratic • House

  • Shanique Speight

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 62 • No: 51

House vote • 6/28/2024

3RDG FINAL PASSAGE

Yes: 41 • No: 34

Senate vote • 6/28/2024

3RDG FINAL PASSAGE

Yes: 21 • No: 17

Actions Timeline

  1. Approved by Governor — P.L.2024, c.19.

    6/28/2024Governor
  2. Passed Senate, PBH — (21-17)

    6/28/2024Senate
  3. Substituted for S3514

    6/28/2024Senate
  4. Received in Senate, SWR, 2nd Reading in Senate

    6/28/2024Senate
  5. Passed Assembly — (41-34-0)

    6/28/2024House
  6. Reported, 2nd Reading in Assembly

    6/26/2024House
  7. Introduced, 1st Reading in Assembly, Referred to Assembly Budget Committee

    6/26/2024House

Bill Text

  • Version PL2024

    9/10/2024

  • Version AL2024

    7/31/2024

  • 7/8/824; as introduced

    7/8/2024

  • As Introduced

    6/28/2024

  • Assembly Budget Substitute (6/26/24)

    6/27/2024

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