In a surprising move, New Jersey Governor Phil Murphy has signed into law a new EV road tax, making it the highest of its kind in the nation. This tax requires New Jersey EV owners to pay a hefty annual fee of $250 starting in July. The fee will increase by $10 each year until it reaches $290 in 2028. What makes it worse is that this fee will be included in the upfront payment for new vehicle buyers and leasers, effectively raising the cost of owning or leasing an electric vehicle in New Jersey by $1,060.
New electric vehicle buyers in New Jersey will now face an additional $1,060 road tax bill upfront, deterring many from considering EVs.
As a New Jersey resident and EV owner, I find this tax unreasonable and premature, given the current adoption rate of electric vehicles in the state. I believe EVs should start paying road taxes when they constitute a significant portion of the total vehicle fleet.
Furthermore, the sales tax exemption for battery electric vehicles in New Jersey since 2004 will be phased out, adding to the financial burden on prospective EV buyers. The state’s ChargeUp EV incentive program, although well-intentioned, has faced challenges and uncertainty in funding, making it difficult for dealers and buyers.
It’s disheartening to see New Jersey transition from a pro-EV state to one where owning an EV becomes increasingly expensive. The new road tax will hinder the state’s progress towards clean energy goals and ultimately discourage EV adoption.
New electric vehicles sold in New Jersey will now come with a $1,060 road tax fee at the time of sale or lease, increasing the financial burden on buyers.
Excerpts from a letter by ChargEVC, a non-profit advocating for EV growth in New Jersey, highlighted the detrimental impact of the new EV tax on the state’s environmental goals and EV adoption. The organization recommended lowering the annual fee to promote EV usage.
Under the new EV road tax, the annual cost for my Chevrolet Bolt EV will be nearly double that of a Honda Civic hatchback owner in gasoline tax.
The proposed $250 EV fee is disproportionate to the environmental benefits of EVs and overlooks sales tax already paid by EV drivers on electricity. ChargEVC recommends amending the EV tax to a fairer amount to support EV adoption and cleaner air.
I support the concept of EV drivers contributing to road taxes fairly, but the current tax implementation is unjust and will hinder the state’s goals. It’s crucial for New Jersey to foster EV adoption and clean energy initiatives rather than deter them with punitive measures.
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