STATE OF NEW JERSEY
222nd LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman ROBERT AUTH
District 39 (Bergen)
Co-Sponsored by:
Assemblymen Azzariti Jr., McClellan, Simonsen and Myhre
SYNOPSIS
Exempts retail sales of used motor vehicles from New Jersey sales and use tax.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act exempting the sales of used motor vehicles from the sales and use tax, supplementing P.L.1966, c.30 (C.54:32B-1 et seq.)
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding the provisions of any law to the contrary, the receipt from the retail sale of a used motor vehicle as defined in this section is exempt from the sales and use tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) regardless of whether by private sale, casual sale or sale by a motor vehicle dealer.
b. As used in this section, “used motor vehicle" means a passenger motor vehicle, motorcycle, motor home and off-road vehicle, title to, or possession of which has been transferred from the person who first acquired it from the manufacturer or dealer, and so used as to become what is commonly known as "secondhand.”
2. This act shall take effect on the first day of the second month after the date of enactment.
STATEMENT
This bill exempts retail sales of used motor vehicles from the New Jersey sales and use tax. Used motor vehicles exempt from tax are passenger motor vehicles, motorcycles, motor homes and off-road vehicles, title to, or possession of which has been transferred from the person who first acquired it from the manufacturer or dealer, and so used as to become what is commonly known as a secondhand motor vehicle. The tax exemption will apply to the sales tax and the use tax applied to out of State purchases and will apply to all sales whether by private sale, casual sale or sale by a motor vehicle dealer.