SALES TAX EXEMPTION - ZERO EMISSION VEHICLES (ZEV) (N.J.S.A. 54:32B-8.55)
ZEVs sold, rented, or leased in New Jersey are exempt from state sales and use tax. This exemption does not apply to partial ZEVs, including hybrid electric vehicles. ZEVs are defined as vehicles that meet California Air Resources Board zero emission standards for that model year.
The definition of "sale" in the law includes rentals and leases. Thus, the exemption is applicable to the sale, rental or lease of a new or used zero emission motor vehicle on and after May 1, 2004.
Motor Vehicle Dealers, Leasing and Rental Companies and Other Vendors:
In order to document the exemption for the sale or rental of a qualified zero emission vehicle, the customer should complete an Exempt Use Certificate (ST-4) and insert the statutory reference "N.J.S.A. 54:32B-8.55."
The following vehicles have been certified by the Commissioner of the New Jersey Department of Environmental Protection (DEP) as qualified Zero Emission Vehicles and thus, are exempt from New Jersey sales and use tax: