STATE OF NEW JERSEY
222nd LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman ROBERT AUTH
District 39 (Bergen)
Co-Sponsored by:
Assemblymen Azzariti Jr., McClellan, Simonsen and Myhre
SYNOPSIS
Reduces tax rate by 50 percent on sales and use of used motor vehicles.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act providing a reduced sales tax rate on the retail sales of used motor vehicles, supplementing P.L.1966, c.30 (C.54:32B-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding the provisions of any law to the contrary, the receipt from the retail sale of a used motor vehicle as defined in this section is exempt to the extent of 50% of the sales and use tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) regardless of whether by private sale, casual sale or sale by a motor vehicle dealer.
b. As used in this section, “used motor vehicle" means a passenger motor vehicle, motorcycle, motor home and off-road vehicle, title to, or possession of which has been transferred from the person who first acquired it from the manufacturer or dealer, and so used as to become what is commonly known as "secondhand.”
2. This act shall take effect on the first day of the second month after the date of enactment.
STATEMENT
This bill reduces by 50 percent the rate of sales and use tax on the sales of used passenger motor vehicles, motorcycles, motor homes and off-road vehicles. The reduced tax rate, when applied to the current sales and use tax rate, will be 3.3125 percent of the receipt from a sale, and will apply to private sales, casual sales or sales by motor vehicle dealers. Used motor vehicles subject to the reduced tax rate are commonly referred to as secondhand, and will include motor vehicles, the title to, or possession of which has been transferred from the person who first acquired it from the manufacturer or dealer.