ASSEMBLY, No. 5339 STATE OF NEW JERSEY 221st LEGISLATURE INTRODUCED FEBRUARY 20, 2025
ASSEMBLY, No. 5339
STATE OF NEW JERSEY
221st LEGISLATURE
INTRODUCED FEBRUARY 20, 2025
Sponsored by: Assemblyman JOHN V. AZZARITI JR., M.D. District 39 (Bergen) SYNOPSIS Adjusts price threshold for titling fee for new luxury vehicles. CURRENT VERSION OF TEXT As introduced.
Sponsored by:
Assemblyman JOHN V. AZZARITI JR., M.D.
District 39 (Bergen)
SYNOPSIS
Adjusts price threshold for titling fee for new luxury vehicles.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the certificate of ownership fee for certain vehicles and amending P.L.2006, c.39. Be It Enacted by the Senate and General Assembly of the State of New Jersey: 1. Section 1 of P.L.2006, c.39 (C.39:3-8.3) is amended to read as follows: 1. As used in [this act] P.L.2006, c.39 (C.39:3-8.3 et seq.): "Environmental Protection [Administration] Agency average fuel efficiency rating" means the fuel efficiency rating for a particular motor vehicle calculated by adding together the United States Environmental Protection [Administration's] Agency's city and highway miles per gallon rating for that motor vehicle and dividing the resulting sum by two. "Lease price" means the capitalized cost as stated in the agreement between a lessor and a lessee. "Sales price" means the gross selling price appearing on a contract of sale. (cf: P.L.2006, c.39, s.1) 2. Section 2 of P.L.2006, c.39 (C.39:3-8.4) is amended to read as follows: 2. a. In addition to the motor vehicle registration fees imposed pursuant to the provisions of chapter 3 of Title 39 of the Revised Statutes, the chief administrator shall, as a condition for the issuance and filing of a certificate of ownership pursuant to R.S.39:10-11, impose and collect an additional fee for any new passenger automobile having: (1) [A] a sales price or lease price of [$45,000] $70,000 or more, prior to any credit or offset of that sales price or lease price resulting from any rebate or trade-in [which] that lowers the price of the passenger automobile to less than [$45,000,] $70,000; or (2) [An] an Environmental Protection [Administration] Agency average fuel efficiency rating of less than 19 miles per gallon. b. The additional fee authorized under subsection a. of this section shall be determined by multiplying the sales price or lease price for the new passenger automobile, prior to any credit or offset for any rebate or trade-in, by 0.4 percent, notwithstanding adjustments for inflation. The fee imposed under this section shall be separately stated on any bill, receipt, invoice, or similar document provided to the purchaser and shall not be subject to the retail sales taxes imposed under the provisions of the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.). Beginning January 1, 2026, and on January 1 of every third year thereafter, the Director of the Division of Taxation shall adjust the fee collected pursuant to paragraph (1) of subsection a. of this section based on the "New Vehicles" category percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U), as published by the United States Department of Labor, for the three-year period ending on June 30 of the preceding year. The adjusted fee shall be added to the sales or lease price for the new passenger automobile and rounded to the nearest whole dollar. The director shall publish the adjusted fee amount on the division's Internet website no later than December 1 of the year preceding the implementation of the adjusted fee. c. In the case of a new passenger automobile purchased or leased in New Jersey, the fee shall be collected by the person required to collect the retail sales tax imposed on that motor vehicle pursuant to subsection a. of section 3 of P.L.1966, c.30 (C.54:32B-3). That person shall be personally liable for collecting, reporting, and remitting the fee in a manner prescribed by the chief administrator. In the case of a new passenger automobile purchased or leased in a jurisdiction other than New Jersey, the fee and any forms required by the chief administrator shall be remitted directly to the chief administrator. If the seller or lessor of the new passenger automobile in that other jurisdiction is required to collect the retail sales tax imposed on that motor vehicle pursuant to subsection a. of section 3 of P.L.1966, c.30 (C.54:32B-3) and is authorized to apply for the issuance and filing of a certificate of ownership pursuant to R.S.39:10-11, that seller or lessor may collect, report, and remit the fee in a manner prescribed by the chief administrator. d. The fee authorized under this section shall not be imposed on the sale or lease of any new passenger automobile having a sale price or lease price, as the case may be, over [$45,000] $70,000 that: (1) [Has] has an Environmental Protection [Administration] Agency average fuel efficiency rating of 40 or more miles per gallon; or (2) [Is] is certified as a zero emission vehicle by the Commissioner of Environmental Protection pursuant to the provisions of P.L.2003, c.266 (C.26:2C-8.15 et al.). e. The chief administrator, in accordance with the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall promulgate rules and regulations to effectuate the purposes of [this act] P.L.2006, c.39 (C.39:3-8.3 et seq.). (cf: P.L.2006, c.39, s.2) 3. This act shall take effect immediately. STATEMENT This bill revises the price threshold for a new luxury passenger automobile under New Jersey's Luxury and Fuel-Inefficient Vehicle Surcharge (LFIS). Under current law, the New Jersey Motor Vehicle Commission (MVC) imposes a one-time 0.4 percent LFIS when a new passenger automobile with a sales or lease price of at least $45,000 or with a fuel efficiency rating of less than 19 miles per gallon is issued a certificate of ownership. This bill increases this threshold to $70,000 and further requires the Director of the Division of Taxation (director) to adjust the fee based on the "New Vehicles" category percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U), as published by the United States Department of Labor, for the three-year period ending on June 30 of the preceding year. The adjusted fee is then to be added to the sales or lease price and rounded to the nearest whole dollar. Finally, the bill requires the director to publish the adjusted fee amount on the division's Internet website by no later than December 1 of the year preceding the implementation of the adjusted fee.
An Act concerning the certificate of ownership fee for certain vehicles and amending P.L.2006, c.39.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.2006, c.39 (C.39:3-8.3) is amended to read as follows:
1. As used in [this act] P.L.2006, c.39 (C.39:3-8.3 et seq.):
"Environmental Protection [Administration] Agency average fuel efficiency rating" means the fuel efficiency rating for a particular motor vehicle calculated by adding together the United States Environmental Protection [Administration's] Agency's city and highway miles per gallon rating for that motor vehicle and dividing the resulting sum by two.
"Lease price" means the capitalized cost as stated in the agreement between a lessor and a lessee.
"Sales price" means the gross selling price appearing on a contract of sale.
(cf: P.L.2006, c.39, s.1)
2. Section 2 of P.L.2006, c.39 (C.39:3-8.4) is amended to read as follows:
2. a. In addition to the motor vehicle registration fees imposed pursuant to the provisions of chapter 3 of Title 39 of the Revised Statutes, the chief administrator shall, as a condition for the issuance and filing of a certificate of ownership pursuant to R.S.39:10-11, impose and collect an additional fee for any new passenger automobile having:
(1) [A] a sales price or lease price of [$45,000] $70,000 or more, prior to any credit or offset of that sales price or lease price resulting from any rebate or trade-in [which] that lowers the price of the passenger automobile to less than [$45,000,] $70,000; or
(2) [An] an Environmental Protection [Administration] Agency average fuel efficiency rating of less than 19 miles per gallon.
b. The additional fee authorized under subsection a. of this section shall be determined by multiplying the sales price or lease price for the new passenger automobile, prior to any credit or offset for any rebate or trade-in, by 0.4 percent, notwithstanding adjustments for inflation. The fee imposed under this section shall be separately stated on any bill, receipt, invoice, or similar document provided to the purchaser and shall not be subject to the retail sales taxes imposed under the provisions of the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.). Beginning January 1, 2026, and on January 1 of every third year thereafter, the Director of the Division of Taxation shall adjust the fee collected pursuant to paragraph (1) of subsection a. of this section based on the "New Vehicles" category percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U), as published by the United States Department of Labor, for the three-year period ending on June 30 of the preceding year. The adjusted fee shall be added to the sales or lease price for the new passenger automobile and rounded to the nearest whole dollar. The director shall publish the adjusted fee amount on the division's Internet website no later than December 1 of the year preceding the implementation of the adjusted fee.
c. In the case of a new passenger automobile purchased or leased in New Jersey, the fee shall be collected by the person required to collect the retail sales tax imposed on that motor vehicle pursuant to subsection a. of section 3 of P.L.1966, c.30 (C.54:32B-3). That person shall be personally liable for collecting, reporting, and remitting the fee in a manner prescribed by the chief administrator.
In the case of a new passenger automobile purchased or leased in a jurisdiction other than New Jersey, the fee and any forms required by the chief administrator shall be remitted directly to the chief administrator. If the seller or lessor of the new passenger automobile in that other jurisdiction is required to collect the retail sales tax imposed on that motor vehicle pursuant to subsection a. of section 3 of P.L.1966, c.30 (C.54:32B-3) and is authorized to apply for the issuance and filing of a certificate of ownership pursuant to R.S.39:10-11, that seller or lessor may collect, report, and remit the fee in a manner prescribed by the chief administrator.
d. The fee authorized under this section shall not be imposed on the sale or lease of any new passenger automobile having a sale price or lease price, as the case may be, over [$45,000] $70,000 that:
(1) [Has] has an Environmental Protection [Administration] Agency average fuel efficiency rating of 40 or more miles per gallon; or
(2) [Is] is certified as a zero emission vehicle by the Commissioner of Environmental Protection pursuant to the provisions of P.L.2003, c.266 (C.26:2C-8.15 et al.).
e. The chief administrator, in accordance with the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall promulgate rules and regulations to effectuate the purposes of [this act] P.L.2006, c.39 (C.39:3-8.3 et seq.).
(cf: P.L.2006, c.39, s.2)
3. This act shall take effect immediately.
STATEMENT
This bill revises the price threshold for a new luxury passenger automobile under New Jersey's Luxury and Fuel-Inefficient Vehicle Surcharge (LFIS). Under current law, the New Jersey Motor Vehicle Commission (MVC) imposes a one-time 0.4 percent LFIS when a new passenger automobile with a sales or lease price of at least $45,000 or with a fuel efficiency rating of less than 19 miles per gallon is issued a certificate of ownership. This bill increases this threshold to $70,000 and further requires the Director of the Division of Taxation (director) to adjust the fee based on the "New Vehicles" category percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U), as published by the United States Department of Labor, for the three-year period ending on June 30 of the preceding year. The adjusted fee is then to be added to the sales or lease price and rounded to the nearest whole dollar. Finally, the bill requires the director to publish the adjusted fee amount on the division's Internet website by no later than December 1 of the year preceding the implementation of the adjusted fee.