New Jersey A 923: Adjusts price threshold for titling fee for new luxury vehicles.

Bill Text

A923 

ASSEMBLY, No. 923 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman JOHN V. AZZARITI JR., M.D.

District 39 (Bergen)

SYNOPSIS

���� Adjusts price threshold for titling fee for new 
luxury vehicles.

CURRENT VERSION OF TEXT 

���� Introduced Pending Technical Review by Legislative 
Counsel.

�� 

An Act concerning the certificate of ownership fee for 
certain vehicles and amending P.L.2006, c.39.

���� Be It 
Enacted by the Senate and General Assembly of 
the State of New Jersey:

���� 1.��� Section 1 of P.L.2006, 
c.39 (C.39:3-8.3) is amended to read as follows:

���� 1.��� As used in [this act] P.L.2006, 
c.39 (C.39:3-8.3 et seq.):

���� "Environmental Protection 
[Administration] Agency 
average fuel efficiency rating" means the fuel efficiency rating for a 
particular motor vehicle calculated by adding together the United States 
Environmental Protection [Administration's] Agency�s 
city and highway miles per gallon rating for that motor vehicle and dividing 
the resulting sum by two.

���� "Lease price" means 
the capitalized cost as stated in the agreement between a lessor and a lessee.

���� "Sales price" means 
the gross selling price appearing on a contract of sale.

(cf: P.L.2006, c.39, s.1)

���� 2.��� Section 2 of P.L.2006, 
c.39 (C.39:3-8.4) is amended to read as follows:

���� 2.��� a.� In addition to the 
motor vehicle registration fees imposed pursuant to the provisions of chapter 3 
of Title 39 of the Revised Statutes, the chief administrator shall, as a 
condition for the issuance and filing of a certificate of ownership pursuant to 
R.S.39:10-11, impose and collect an additional fee for any new passenger 
automobile having:

���� (1)�� [A] a 
sales price or lease price of [$45,000] $70,000 
or more, prior to any credit or offset of that sales price or lease price 
resulting from any rebate or trade-in [which] that 
lowers the price of the passenger automobile to less than [$45,000,] $70,000; 
or

���� (2)�� [An] an 
Environmental Protection [Administration] Agency 
average fuel efficiency rating of less than 19 miles per gallon.

���� b.��� The additional fee 
authorized under subsection a. of this section shall be determined by 
multiplying the sales price or lease price for the new passenger automobile, 
prior to any credit or offset for any rebate or trade-in, by 0.4 percent, 
notwithstanding adjustments for inflation.� The fee imposed under this 
section shall be separately stated on any bill, receipt, invoice, or 
similar document provided to the purchaser and shall not be subject to the 
retail sales taxes imposed under the provisions of the "Sales and Use Tax 
Act," P.L.1966, c.30 (C.54:32B-1 et seq.).� Beginning January 1, 2026, 
and on January 1 of every third year thereafter, the Director of the Division 
of Taxation shall adjust the fee collected pursuant to paragraph (1) of subsection 
a. of this section 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 shall be added to the sales or lease 
price for the new passenger automobile and rounded to the nearest whole dollar.� 
The director shall publish the adjusted fee amount on the division�s Internet 
website no later than December 1 of the year preceding the implementation of 
the adjusted fee.� 

���� c.���� In the case of a new 
passenger automobile purchased or leased in New Jersey, the fee shall be 
collected by the person required to collect the retail sales tax imposed on 
that motor vehicle pursuant to subsection a. of section 3 of P.L.1966, c.30 
(C.54:32B-3).� That person shall be personally liable for collecting, reporting, 
and remitting the fee in a manner prescribed by the chief administrator.

���� In the case of a new passenger 
automobile purchased or leased in a jurisdiction other than New Jersey, the fee 
and any forms required by the chief administrator shall be remitted directly to 
the chief administrator.� If the seller or lessor of the new passenger 
automobile in that other jurisdiction is required to collect the retail sales 
tax imposed on that motor vehicle pursuant to subsection a. of section 3 of 
P.L.1966, c.30 (C.54:32B-3) and is authorized to apply for the issuance and 
filing of a certificate of ownership pursuant to R.S.39:10-11, that seller or 
lessor may collect, report, and remit the fee in a manner prescribed by 
the chief administrator.

���� d.��� The fee authorized under 
this section shall not be imposed on the sale or lease of any new passenger 
automobile having a sale price or lease price, as the case may be, over [$45,000] $70,000 
that:

���� (1)�� [Has] has an 
Environmental Protection [Administration] Agency 
average fuel efficiency rating of 40 or more miles per gallon; or

���� (2)�� [Is] is 
ce