summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill revises the price threshold for a new luxury passenger automobile under New Jersey's Luxury and Fuel-Inefficient Vehicle Surcharge (LFIS). Under current law, the New Jersey Motor Vehicle Commission (MVC) imposes a one-time 0.4 percent LFIS when a new passenger automobile with a sales or lease price of at least $45,000 or with a fuel efficiency rating of less than 19 miles per gallon is issued a certificate of ownership. This bill increases this threshold to $70,000 and further requires the Director of the Division of Taxation (director) to adjust the fee based on the "New Vehicles" category percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U), as published by the United States Department of Labor, for the three-year period ending on June 30 of the preceding year. The adjusted fee is then to be added to the sales or lease price and rounded to the nearest whole dollar. Finally, the bill requires the director to publish the adjusted fee amount on the division's Internet website by no later than December 1 of the year preceding the implementation of the adjusted fee.
AI Summary
This bill adjusts the price threshold for a special titling fee on new luxury vehicles in New Jersey, known as the Luxury and Fuel-Inefficient Vehicle Surcharge (LFIS). Currently, this 0.4% fee is applied to new passenger cars costing $45,000 or more, or those with less than 19 miles per gallon (MPG) fuel efficiency. The bill raises the price threshold to $70,000 and mandates that the Director of the Division of Taxation will periodically adjust this fee based on inflation, specifically using the "New Vehicles" category of the Consumer Price Index for All Urban Consumers (CPI-U) over a three-year period. This adjusted fee will be added to the vehicle's price and rounded to the nearest whole dollar, with the updated amount published online by December 1st of the year before it takes effect. The bill also clarifies that the Environmental Protection Agency (EPA) average fuel efficiency rating is calculated by averaging the city and highway MPG.
Committee Categories
Transportation and Infrastructure
Sponsors (1)
Last Action
Introduced, Referred to Assembly Transportation and Independent Authorities Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A923 |
| BillText | https://pub.njleg.gov/Bills/2026/A1000/923_I1.HTM |
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