Environment New Jersey Issues Testimony Opposing Punitive EV Tax

Trenton – Environment New Jersey, along with other environmental and electric vehicle advocates and the NJ car dealer association, issued testimony this afternoon to opposed the highest-in-the-nation $250 fee proposed on electric vehicles included in legislation to update the New Jersey Transportation Trust Fund Authority Act (S2931/A4011), which will include a fee of more than $1,000 for purchases of new EVs (because new car purchases require a 4-year upfront car registration). This effort is part of misguided effort to force EV drivers to pay into the Transportation Trust Fund at levels higher than massive gas guzzlers on the road, and as coupled with a misguided effort in Gov. Murphy’s FY25 budget to phase out the sales tax exemption.

Doug O’Malley, Director of Environment New Jersey, issued the following testimony:

Good afternoon, members of the Assembly Appropriations Committee. My name is Doug O’Malley, Director of Environment New Jersey, and I am testifying in opposition to legislation to reauthorize the Transportation Trust Fund as it is currently drafted.

First, this process has been so fast that we’re leaving legitimate issues on adoption of EVs on the side of the road. We understand that there are no amendments in front of the Committee today and will be bill will likely move forward and be voted on the floor on Monday.

We humbly ask members of the Committee as well as Assembly sponsor Clinton Calabrese to work to fix this bill for EV drivers (and if not in the bill, in the final budget language for FY25).

Second, this is the Transportation Trust Fund, not the Road Trust Fund. New Jersey is the densest state in the nation. We need to be looking at all of our transportation options, including providing increased funding for NJ Transit, to ensure we providing residents real options to get on the bus or train and get out of their cars to benefit the environment.

We certainly shouldn’t be giving the middle finger to EV drivers – this is a punitive EV tax that punishes drivers for the decision to choose an electric vehicle. We support EV drivers paying their fair share – but this goes way too far. Transportation generates the highest amount of greenhouse gas pollutants (roughly 40%) as well as ground level ozone. We just had the hottest year on record, the warmest winter on record, and we all can be wearing T-shirts for St. Patrick’s Day celebrations, but that’s what they do in Savannah.

We have a Jekyll and Hyde approach to EVs right now – with this punitive tax, we’re sending the wrong message to drivers looking to buy an EV. New Jersey EV policy shouldn’t be schizophrenic, and this EV tax is a blunt instrument which will suppress EV sales.

We recommend the following changes and amendments in the legislation:

• The 4-year upfront EV fee on new car purchases should be decoupled from an upfront payment to annual payments to ensure that no driver is required to pay more than $1,000 up front for the privilege of buying an EV.
• The $250 EV tax, which will raise ultimately to $290 is punitive. We support a lower fee of $75 to reflect the EV efficiency. We shouldn’t tax EVs like they’re a gas guzzler.
• As part of the 2020 EV law, there was conversation on this very issue – how to equitably tax EVs to allow them to pay for road maintenance. Ultimately, separate legislation was passed to set up an advisory commission. We would strongly recommend that action on any EV fee be deferred to a stakeholder process involving the commission members, as an opportunity to look at charging station infrastructure and the ability to charge a road fee.
• We need to look at the EV tax and the sunset of the EV sales tax holistically as part of the FY25 budget process. Governor Murphy has shown real leadership on EVs and we would urge the support of the Governor to work to fix these issues in the FY25 budget.

Thank you for your time and attention.

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