New Jersey: A new tax slows down the momentum of electric vehicles

Slushy Winter Street With Parked Cars

In an unexpected twist, the state of New Jersey has implemented a new circulation tax for electric vehicles, one of the highest in the country. This measure, which will take effect in July, has sparked controversy and concern among advocates of eco-friendly transportation.

The tax, starting at $250 and increasing to $290 over the next four years, is in addition to the initial registration fees for four years required of all new car buyers in New Jersey. This means that, starting in July, the price of a new electric vehicle in the state will increase by $1,060.

The justifications for the new tax are

  • To offset the decrease in tax revenues from fuel sales.
  • To ensure that electric vehicles contribute to the maintenance and development of road infrastructure.

However, critics argue that:

  • The tax poses a barrier to wider adoption of electric vehicles.
  • It is premature to implement such a high tax when the proportion of electric vehicles in the state is only 1.8%.
  • There are fairer alternatives to raise revenue, such as a tax based on miles traveled.

The future of electric transportation in New Jersey is uncertain. The new tax could slow down the growth of the electric vehicle market in the state. However, it could also encourage the search for fairer and more sustainable alternatives to finance road infrastructure.

Undoubtedly, New Jersey’s decision has sparked a significant debate about the future of transportation and fiscal policy in the era of electrification.

Will this be a setback for sustainable mobility or an incentive to find more equitable solutions? Only time will tell.

This recognition by the IIHS paves the way for a future where electric trucks are not only eco-friendly but also demonstrably safe for drivers and passengers alike.

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