Whitesnake
Member
http://www.state.nj.us/mvc/Vehicle/luxurytaxsurcharge.htm
*Updated October 19, 2006
Note to new car dealers: The Division of Revenue now accepts LFIS payments online through the Dealer's Online Report and Payment Service
Effective July 15, 2006, new car dealerships will be responsible for collecting a 0.4% surcharge on the sale of new passenger vehicles, light trucks, SUVs, or vans for which either of the following conditions appy:
The gross sales/lease price of the new vehicle is $45,000 or greater, before trade-in, manufacturers rebates, or additional handicapped driver adaptive equipment
The new vehicle has an average EPA mile/gallon (city and highway) rating of less than 19
Note to new car dealers: If you made any sales July 15-22, 2006 that are subject to this Luxury and Fuel Inefficient Surcharge (LFIS), you must retroactively complete the form "Application for Certificate of Ownership for a New Vehicle" and mail
LUXURY & FUEL INEFFICIENT SURCHARGE FAQS
(LFIS) 8/06
Under what circumstances does the surcharge apply?
The surcharge applies to NEW passenger vehicles whose gross sales/lease price is
$45,000 or more and/or whose average EPA mile per gallon (city and highway) is less
than 19 MPG.
I plan to purchase a new vehicle which costs $20,000. Does the surcharge apply?
If the average EPA mile per gallon is less than 19 MPG, and the vehicle is registered as a
passenger vehicle (including Code 15 registrations), the surcharge applies.
To what types of vehicles does the surcharge apply?
The surcharge applies to NEW passenger vehicles, light trucks, SUVs or vans which
meet the pricing/mileage criteria outlined above.
I plan to purchase a used vehicle priced at $50,000, does the surcharge apply?
No, the surcharge applies to NEW passenger vehicles only.
What if the new vehicle does not have an EPA MPG rating?
The surcharge is not applicable.
How much is the surcharge and how is it calculated?
The surcharge of 0.4% is applied to the gross sales/lease price of the new passenger
vehicle before trade-in or additional Handicapped Driver Adaptive Equipment.
Are there any exemptions to the surcharge?
The surcharge does not apply to passenger vehicles if, after deducting the cost of
handicapped driver adaptive equipment, the gross sales/lease price is less than $45,000;
provided however, the vehicles EPA MPG rating is not less than 19.
Passenger vehicles whose gross sales/lease price is equal to or greater than $45,000 AND
have an average EPA MPG rating of over 40. (Add both city and highway ratings and
divide by 2).
Passenger vehicles certified as zero emission vehicles by the Commissioner of
Environmental Protection.
Passenger vehicles that are titled and registered outside of New Jersey.
The surcharge does not apply to the following vehicles: Motorcycle, RV, ATV, Boat,
School Bus, Dump Truck, Tractor, Trailer, Municipal, County, State or Federal
Government Vehicles, Construction Vehicles, Commuter Van, Farm Use, Farm Truck,
Omnibus/Taxi, or Limousine for commercial hire
*Updated October 19, 2006
Note to new car dealers: The Division of Revenue now accepts LFIS payments online through the Dealer's Online Report and Payment Service
Effective July 15, 2006, new car dealerships will be responsible for collecting a 0.4% surcharge on the sale of new passenger vehicles, light trucks, SUVs, or vans for which either of the following conditions appy:
The gross sales/lease price of the new vehicle is $45,000 or greater, before trade-in, manufacturers rebates, or additional handicapped driver adaptive equipment
The new vehicle has an average EPA mile/gallon (city and highway) rating of less than 19
Note to new car dealers: If you made any sales July 15-22, 2006 that are subject to this Luxury and Fuel Inefficient Surcharge (LFIS), you must retroactively complete the form "Application for Certificate of Ownership for a New Vehicle" and mail
LUXURY & FUEL INEFFICIENT SURCHARGE FAQS
(LFIS) 8/06
Under what circumstances does the surcharge apply?
The surcharge applies to NEW passenger vehicles whose gross sales/lease price is
$45,000 or more and/or whose average EPA mile per gallon (city and highway) is less
than 19 MPG.
I plan to purchase a new vehicle which costs $20,000. Does the surcharge apply?
If the average EPA mile per gallon is less than 19 MPG, and the vehicle is registered as a
passenger vehicle (including Code 15 registrations), the surcharge applies.
To what types of vehicles does the surcharge apply?
The surcharge applies to NEW passenger vehicles, light trucks, SUVs or vans which
meet the pricing/mileage criteria outlined above.
I plan to purchase a used vehicle priced at $50,000, does the surcharge apply?
No, the surcharge applies to NEW passenger vehicles only.
What if the new vehicle does not have an EPA MPG rating?
The surcharge is not applicable.
How much is the surcharge and how is it calculated?
The surcharge of 0.4% is applied to the gross sales/lease price of the new passenger
vehicle before trade-in or additional Handicapped Driver Adaptive Equipment.
Are there any exemptions to the surcharge?
The surcharge does not apply to passenger vehicles if, after deducting the cost of
handicapped driver adaptive equipment, the gross sales/lease price is less than $45,000;
provided however, the vehicles EPA MPG rating is not less than 19.
Passenger vehicles whose gross sales/lease price is equal to or greater than $45,000 AND
have an average EPA MPG rating of over 40. (Add both city and highway ratings and
divide by 2).
Passenger vehicles certified as zero emission vehicles by the Commissioner of
Environmental Protection.
Passenger vehicles that are titled and registered outside of New Jersey.
The surcharge does not apply to the following vehicles: Motorcycle, RV, ATV, Boat,
School Bus, Dump Truck, Tractor, Trailer, Municipal, County, State or Federal
Government Vehicles, Construction Vehicles, Commuter Van, Farm Use, Farm Truck,
Omnibus/Taxi, or Limousine for commercial hire
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