Question about EV sales tax in NJ

, ,

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.

1 Like

Honestly, that’s a very interesting question. The NJ website doesn’t mention that at all.

https://www.state.nj.us/treasury/taxation/zevnotice.shtml

I’d check on a Tesla forum or the subreddit. Considering how pricey the Model S is, somehow there has to know

3 Likes

They are exempt. Sorry I’m a Tesla nerd. Info is current, pdf is just for ‘19 my. Dealer is wrong.

2 Likes

Knowing how ridiculous NJ is though, I wouldn’t be surprised if they consider the luxury tax to be separate from sales tax :upside_down_face:

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.

2 Likes


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.

2 Likes

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.

1 Like

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

1 Like