So I am in the market for a 2019 E-Tron and NJ does not charge sales tax on EV’s. I own a Tesla Model 3 and when I got it last year there was no sales tax collected. However I am working with an Audi dealer and he informed me that even though there is no sales tax there would be a luxury tax collected on the vehicle because the MSRP is 78k. Does anybody know if this is true? I tried to research online and know the luxury tax rate is 0.4 % but it does not say anything about EV’s. Any help is appreciated. Thanks.
Honestly, that’s a very interesting question. The NJ website doesn’t mention that at all.
I’d check on a Tesla forum or the subreddit. Considering how pricey the Model S is, somehow there has to know
They are exempt. Sorry I’m a Tesla nerd. Info is current, pdf is just for ‘19 my. Dealer is wrong.
Knowing how ridiculous NJ is though, I wouldn’t be surprised if they consider the luxury tax to be separate from sales tax
Yes but they do not mention anything about luxury tax which is seperate than sales tax.
On my model 3, I paid zero sales tax and no luxury tax because it was 42k. The Audi is more expensive so not sure now.
Looks like it should be exempt. https://teslamotorsclub.com/tmc/threads/new-jersey-model-s-final-price-after-delivery-any-fees.11031/#fc-post-210885
NJ considers luxury surcharge to be separate from sales tax though. Regardless, it is exempt per this bulletin.
Reread my comment, didn’t mean to come off as arrogant, apologize for that, but yes. The normal law page is very unclear, and the Tesla forum post was for a gen 1 2013 MS, but it still checks out.
Great info. I will let the dealer know. Maybe they are just trying to get a few hundred extra bucks from me. I was going to ask for a lease contract anyway and I am pretty sure there would be some numbers in the tax column if there in fact was one on the vehicle.
Thanks @HersheySweet. Age is just a number but maturity is a choice. So thanks for digging out the info and your help. Appreciate it.
Ofc, it’s either I do this and troll this forum with my pastry and ev knowledge, or do something even less productive.
No luxury tax or sales tax on EV in NJ
Bought 2 MX and no tax on both