Posted on 04/09/2024 7:49:07 AM PDT by Red Badger
The new "EV Tax" is the highest in the nation and will likely put the brakes on EV adoption in the Garden State.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
With the stroke of a pen, New Jersey Governor Phil Murphy has unplugged the state's pro-electric-vehicle position, signing into law a new EV road tax that is the highest of its kind in the nation.
Starting in July, New Jersey EV owners must pay an annual $250 road tax fee in an effort to offset the state's loss in fuel tax revenue. The new fee will increase by $10 each of the next four years until it reaches $290 in 2028. To make matters worse, New Jersey requires buyers and leases of all new vehicles to pay four years of registration fees upfront and the new EV fee will be included in that initial payment.
Therefore, beginning in July, any new electric vehicle purchased or leased in New Jersey will cost $1,060 more than it does today. That's considerably damaging since the higher initial cost of an electric vehicle is one of the biggest impediments to EV adoption.
As a lifelong resident of New Jersey as well as a long-time EV owner, it pains me to see the state initiate what I consider an unreasonable tax on clean-energy vehicles so prematurely.
I say prematurely because I have always maintained that electric vehicles should pay their fair share of road taxes, which help fund the state's infrastructure repair and development. However, I believe that should only start once electric vehicles have reached a point of being 5% of the total light vehicle fleet in the state. Estimates have that figure currently at about 1.8%.
Additionally, once such a fee was imposed, I would support the amount to be similar to what the average combustion vehicle in its class pays per year through the state's gasoline tax. Murphy's current law will have many EV owners paying twice as much as the owners of a comparable combustion vehicle pay in the gasoline tax.
And the pain doesn't stop there. Since 2004, battery electric vehicles (BEVs) have enjoyed a sales tax exemption in New Jersey, and that luxury will now begin a three-year phase-out period. The sales tax exemption has been an enormous incentive to Garden State residents wanting to ditch the pump, helping to close the gap between the cost of a comparable combustion vehicle and the more expensive EV.
I understand the sales tax exemption wouldn't—or shouldn't go on forever. I figured that by the end of this decade EVs would have near cost-parity with combustion vehicles and the incentives wouldn't be needed anymore. However, today, and for the next few years, the incentives are still important in helping many that want an EV, afford it. The fact that the sales tax announcement was made at the same time the new EV road tax was signed into law made the news for New Jerseyians even harder to swallow.
I would also be remiss if I didn't mention the state's ChargeUp EV incentive program, which offers up to a $4,000 point of sale incentive on electric vehicles. Signed into law in 2020, ChargeUp is funded by the Board of Public Utilities which has $30 million set aside every year for 10 years to pay for the rebates. Each year since its inception, the fund runs out well before the year does, and the program gets suspended until the following year's funding is in place.
While the program's intentions were great, the way it has been administered has made it very difficult for dealers and EV buyers, because there are many months of the year when there is no rebate and no clear date when the program will receive its next traunch of funding.
I think that what's disappointed me most is that with the recent changes the state is going from one of the best states to buy an EV, to one where, over time, it will cost more to own one.
As a lifelong resident of New Jersey as well as a long-time EV owner, it pains me to see the state initiate what I consider an unreasonable tax on clean-energy vehicles so prematurely.
I say prematurely because I have always maintained that electric vehicles should pay their fair share of road taxes, which help fund the state's infrastructure repair and development. However, I believe that should only start once electric vehicles have reached a point of being 5% of the total light vehicle fleet in the state. Estimates have that figure currently at about 1.8%.
Additionally, once such a fee was imposed, I would support the amount to be similar to what the average combustion vehicle in its class pays per year through the state's gasoline tax. Murphy's current law will have many EV owners paying twice as much as the owners of a comparable combustion vehicle pay in the gasoline tax.
And the pain doesn't stop there. Since 2004, battery electric vehicles (BEVs) have enjoyed a sales tax exemption in New Jersey, and that luxury will now begin a three-year phase-out period. The sales tax exemption has been an enormous incentive to Garden State residents wanting to ditch the pump, helping to close the gap between the cost of a comparable combustion vehicle and the more expensive EV.
I understand the sales tax exemption wouldn't—or shouldn't go on forever. I figured that by the end of this decade EVs would have near cost-parity with combustion vehicles and the incentives wouldn't be needed anymore. However, today, and for the next few years, the incentives are still important in helping many that want an EV, afford it. The fact that the sales tax announcement was made at the same time the new EV road tax was signed into law made the news for New Jerseyians even harder to swallow.
I would also be remiss if I didn't mention the state's ChargeUp EV incentive program, which offers up to a $4,000 point of sale incentive on electric vehicles. Signed into law in 2020, ChargeUp is funded by the Board of Public Utilities which has $30 million set aside every year for 10 years to pay for the rebates. Each year since its inception, the fund runs out well before the year does, and the program gets suspended until the following year's funding is in place.
While the program's intentions were great, the way it has been administered has made it very difficult for dealers and EV buyers, because there are many months of the year when there is no rebate and no clear date when the program will receive its next traunch of funding.
I think that what's disappointed me most is that with the recent changes the state is going from one of the best states to buy an EV, to one where, over time, it will cost more to own one.
I'm certainly not the only person who shares these opinions. I reached out to Pam Frank, the CEO of ChargEVC, a non-profit coalition that promotes the sustainable growth of the electric vehicle market in New Jersey for her thoughts on the recent developments.
Frank sent me a copy of a letter the organization sent to members of the New Jersey Senate Budget and Appropriations Committee a few weeks ago along with a request to amend the new EV tax, and hopefully lower the annual fee to something more reasonable.
Below is an excerpt from the letter:
There are three main reasons supporting this position: First and foremost, it is imperative that we keep our eye on the ball. New Jersey has set aggressive statewide clean energy and EV adoption goals to combat the emissions that harm our environment and harm people’s health. The Murphy Administration and the New Jersey Legislature have prioritized efforts to reduce greenhouse gas emissions and fight climate change.
This has included implementing a range of incentives to support the purchase of EVs and the charging infrastructure necessary to charge these vehicles. Imposing an EV fee of $250 would negate the impact of these rebates and tax credits. It would also slow progress towards achieving our statewide goals. In fact, a 2020 nationwide survey of current EV owners by UC Davis concluded that a $100 annual registration fee on EVs would reduce sales by over 10%.
At $250, New Jersey would have the highest, most punitive EV fee in the country. We must ensure that New Jersey remains a national leader in the fight against climate change.
Hardy har har...
Suckers.
Watch for Biden and democrats in Washington offer a tax break, or a subsidy to offset the road taxes passed by states and localities. A refund at tax time every year will take care of those road fees.
ICE vehicle owners will be paying for those breaks.
Menendez has a lot of legal bills to pay for.
As traffic and civil engineers are starting to point out, the much heavier EVs also create additional wear on the roads and bridges, leading to more frequent repairs. The more stuff like this comes out, the sooner people could realize the EVs may create more problems than they solve.
So all those NJ toll roads don’t extort enough geld to feed the Gubmint beast?
Murphy’s Law, ‘what can be taxed will be taxed’.
To save the climate, all charging stations should run on windmills and solar panels.
I’m special and I shouldn’t have to pay taxes and fees like everyone else.
The irony is delicious liberal tears that taste like oil.
And this gem :
>> “I understand the sales tax exemption wouldn’t—or shouldn’t go on forever.“
Yeah, just like a bridge toll was always only legislatively passed in a state only until the bridge was paid for.
punishing??? it’s called road tax and ICE cars pay every fill up, so pay up...
We had a bridge toll here that went away when the county commissioners did an audit and discovered that the tolls barely paid for the toll collectors’ salaries.................
Oh boo hoo, boo hoo, the silly EV nitwit wants we taxpayers to keep subsidizing him; when there is no good reason we should.
Two things I’d never do:
1. Buy an EV.
2. Live in New Jersey.
They got a huge tax credit when they bought the car.
Now the government wants it back..................
That was predictable.
“EVs use the road, too. Pay up”
And destroy them even more. Weight kills.
Whiny bastard complaining his free ride on the backs of ICE car drivers is over.
Suck it up, you loser.
Electricity use is state taxed as well. Hit’em again harder.
Time for EV owners to embrace the suck.
Gee Officer, sorry but my EV is registered South Dakota………
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.