Electric Vehicle Charging Considered Taxable Service in Jersey
The New Jersey Division of Taxation issued guidance regarding the taxability of charging an electric vehicle. Charging an electric vehicle is considered a taxable maintenance or service to tangible personal property. This is the case whether or not the purchaser is charged a flat fee or if the purchaser is charged for exact usage via a meter.
In addition to the sales tax, a new annual fee of $250 will be levied on EV owners. This fee is intended to contribute to the maintenance and improvement of state roads and bridges.
The state’s decision to reinstate the sales tax and introduce a new fee is aimed at generating additional revenue to support infrastructure projects and other public services.
With these changes, New Jersey is committed to promoting clean energy and reducing carbon emissions. The state continues to offer various incentives and programs to encourage the adoption of electric vehicles.
Please note that this is only an overview. For specific guidance, connect with our sales and use tax team here.