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.
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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.
“I figured that by the end of this decade EVs would have near cost-parity with combustion vehicles”
That won’t happen until the floodgate opens from Mexico of cheap BYD Chinese EV’s. And that will be the death knell of the US auto industry and the craven Democrat Union workers to build US junk.
Bahahahahaha. Enjoy the suck
Kalifornistan gov. Grusome nodding his head in approval.
They got a huge tax credit when they bought the car.
Now the government wants it back..................
This isn’t much different than Illinois. I have an ICE car and recently paid ~$150 for the yearly registration fee. EV owners are hit with an additional $100 tax to make up for the lack of gas taxes.
It varies from state to state. Currently 25 states charge extra annual registration fees for EV owners. Here in California I'm paying an extra $108 tax to make up for lack of gas taxes, exorbitant because I don't drive it much.
Good point. EV owners should be able to declare how much they drove the year before and have their registration fees adjusted.
“At least electricity is free, so there’s that. 🤡”
Of course it’s free, and I know how they get it. First they find a Grove of Magic Gaia Trees. Then they capture every petroleum industry executive they can find, drag them to the Magic Grove, and sacrifice all of them according to ancient Aztec tradition. Then, LO!!, all of the Gaia trees sprout infinitely powered electric outlets that supply all of the electricity we’ll ever need for all of our EVs.
question: what did socialists use to pave their roads with before they started paving them with dirt?
answer: asphalt.
In Thomas Edison’s NJ, residential electricity costs about 18 cents per kilowatt hour. Production costs vary from 1 to 4 cents. So electricity is already the most heavily taxed energy option. Consumers lose their sh*t when gasoline goes up 10 cents, but electricity is intangible, and invisible, well, until God hands down the big zot.
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