What is a Zero Emission Vehicle (ZEV)? Where can a list of qualified ZEVs be found? A "zero emission vehicle" means a vehicle certified as a zero emission vehicle according to the California Air Resources Board zero emission vehicle standards for the applicable model year.
Are ZEVs subject to tax? Under N.J.S.A. 54:32B-8.55, the Sales and Use Tax Act provides an exemption for the sale, rental, or lease of ZEVs, which are vehicles certified pursuant to the California Air Resources Board zero emission standards for the model year. However, P.L. 2024, c. 19 repeals the Sales and Use Tax exemption on sales of zero emission vehicles (ZEVs). Beginning October 1, 2024, sales of ZEVs are subject to tax, and the exemption will be phased out over nine months.
The schedule for the phase-out is as follows:
While the exemption period is still in effect, is an exemption certificate needed to purchase a ZEV without paying tax?
Is the maintenance, service, or repair of a ZEV subject to tax?
Is the purchase of repair or replacement parts for a ZEV subject to tax?
Do purchasers have to pay Sales Tax when charging a ZEV at a charging station?
Are labor charges for the installation of an electric vehicle charging station (Residential or Commercial) subject to tax? If the electric vehicle charging station is permanently affixed to the real property, the installation results in an exempt capital improvement and is not subject to tax. The installer does not collect Sales Tax on the labor portion of the bill, provided the property owner issues the installer a fully completed Certificate of Exempt Capital Improvement (Form ST-8) to document the transaction.
Is the maintenance, service, or repair of an electric vehicle charging station subject to tax?
Are materials and supplies used for an electric vehicle charging station (Residential or Commercial) subject to tax? Property owners must pay Sales Tax when purchasing tangible personal property (e.g., new wiring, new outlets, and charging receptacles) for an electric vehicle charging station. Sales of materials and supplies to contractors are taxable because the contractor is considered the final consumer (or end-user) of these items. Thus, when a contractor performs work on the real property of a purchaser, he or she should not charge the purchaser Sales Tax on the cost of materials and supplies used for the job.
