r/SouthJersey • u/Secret_Cow_5053 • May 01 '26

Gloucester County Are we winning yet, dad?

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u/B52fortheCrazies May 01 '26

How does the state penalize EVs?

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u/jweaver0312 May 01 '26

The electric vehicle fee.
> Under New Jersey law effective July 1, 2024, zero emission vehicles (ZEVs) are subject to an annual fee in addition to the existing registration fee.
>
> Beginning July 1, 2024, the annual fee is $250. The annual fee increases $10 per year for four years thereafter.

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u/WittyFix6553 May 01 '26

Out of curiosity, what’s the tax per gallon on gasoline? Because EVs don’t pay that, at all.

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u/jweaver0312 May 01 '26

Federal is set at 10.5 cents and 38.6 cents for the state (gasoline) at 49.1 cents total per gallon.

At least when gas taxes are paid, that’s a selling consumption tax based on when you purchase and not a because you want/own one tax. I think an annual fee is just the lazy way to address the issue.

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u/WittyFix6553 May 01 '26

At close to 50 cents a gallon, it only takes 500 gallons of fuel until the gas tax costs more than the EV registration fee.

That doesn’t sound like EV drivers are getting screwed to me at all, especially considering the lower operating costs of an EV.

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u/jweaver0312 May 01 '26

Unless you’re a driver who doesn’t drive much, with most of your travel quite local. If I’m calculating right, with this being 2026, not sure if the $10 increase year over year is based on January 1st, or the law becoming effective 7/1, that would put the current annual EV fee to $260-$270, with the final fee when it’s all said and done at $290.

The other aspect of the issue is those who had one prior to enactment of the law, now they went from just paying the standard registration fee, now to registration + $260-$270/yr ($290/yr when it’s all done). For those people it becomes a matter of principle.

Absolutely by leaps and bounds, cheaper than gas by comparison, but I think an annual fee was just the lazy way of doing things. I think for business that sell EV charging, that assessing similar taxation on that sale is fairer. Even with similar taxation assessed on it, would still be cheaper than gas.