New Jersey – Sales Tax Exemption for Zero Emission Vehicles

SALT Report 2365 – The New Jersey Division of Taxation updated their list of vehicles that qualify for the sales tax exemption for zero emission vehicles. The exemption applies to the sale, rental, or lease of a new or used zero emission motor vehicle on and after May 1, 2004.

Qualified Vehicles

Qualified vehicles are those that meet the California Air Resources Board’s zero emissions standards, and are also certified by the Commissioner of the New Jersey Department of Environmental Protection as qualified Zero Emission Vehicles. The links below list the vehicles that meet both requirements and are exempt from New Jersey sales tax:

Model Years 2006-2009

Model Year 2010

Model Year 2011

Model Year 2012

Model Year 2013

Model Year 2014

Exclusions

The sales tax exemption does not apply to partial zero emissions vehicles or hybrids, such as the Toyota Prius and Honda Civic Hybrid. Additionally, the exemption does not extend to labor or parts used to repair qualified zero emissions vehicles.

Motor Vehicle Dealers, Leasing or Rental Companies and Other Vendors

To properly document the exemption for the sale or rental of qualified zero emissions vehicles the customer must complete an Exempt Use Certificate, Form ST-4 and include the reference “N.J.S.A. 54:32B-8.55.”

For Further Information

New Jersey Division of Taxation – Notice of Motor Vehicles that Qualify as Zero Emission Vehicles

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