Bill > A5339

This bill adjusts the Luxury and Fuel-Inefficient Vehicle Surcharge (LFIS) in New Jersey by increasing the price threshold for new luxury passenger automobiles from $45,000 to $70,000. Currently, the New Jersey Motor Vehicle Commission (MVC) imposes a one-time 0.4 percent fee on new passenger vehicles that either cost at least $45,000 or have a fuel efficiency rating below 19 miles per gallon. The bill introduces a mechanism for periodic inflation adjustments, requiring the Director of the Division of Taxation to update the price threshold every three years based on the Consumer Price Index for All Urban Consumers (CPI-U) in the "New Vehicles" category. The adjusted fee will be calculated by adding the CPI-U percentage increase to the sales or lease price and rounding to the nearest whole dollar. Additionally, the bill mandates that the director publish the updated fee amount on the division's website by December 1 of the year preceding implementation. The bill also maintains existing exemptions for vehicles with a fuel efficiency rating of 40 or more miles per gallon or those certified as zero-emission vehicles, ensuring that such environmentally friendly vehicles remain exempt from the surcharge.

Transportation and Infrastructure

https://www.njleg.state.nj.us/bill-search/2024/A5339