The New Jersey Motor Vehicle Commission (MVC) has revised its procedures for complying with the Luxury and Fuel Inefficient Surcharges (LFIS). Effective immediately, the dealership’s Sales Tax Satisfied Stamp should again be imprinted on all new vehicle MCOs (Manufacturer Certificates of Origin). In addition, MVC’s Form OS/SS-14 has been revised and simplified, to eliminate confusion that was associated with the earlier form. Now, the MVC Form need only be completed for passenger vehicles, light trucks, SUVs and Van transactions. A copy of MVC Form OS/SS?14 can be accessed by clicking on the link at the end of this story. The MVC has also updated its FAQs, and a copy of that document can also be accessed at the end of the story.MVC Reports Calculation Errors and Incomplete/Illegible FormsThe MVC has expressed its concern to NJ CAR that an audit of Forms OS/SS-14 received by its various motor vehicle agencies, including the NJ CAR Dealer Agency and Online Operation, has the following deficiencies:1) Forms with incomplete information;2) Forms with information that was illegible; and3) Forms that indicated a LFIS was charged when, based upon the information included on the form, a LFIS was not due.MVC has advised NJ CAR that it will instruct its motor vehicle agencies to begin returning transactions (without processing) if the Form OS/SS-14 has any of the deficiencies listed above. So, make sure that employees in your dealership understand how the LFIS works, as well as when it should be assessed.Overview of LFIS· The Luxury and Fuel Inefficient Surcharge (LFIS) applies to any new passenger vehicle titled in
· For new passenger vehicles with a gross sales/lease price of $45,000 or more, the surcharge will not apply if the vehicle’s average EPA MPG is over 40, or if the vehicle is certified by the NJDepartment of Environmental Protection as a “zero emission vehicle”.· For new passenger vehicles with a gross sales/lease price of less than $45,000, the surcharge will apply, if the average EPA MPG is less than 19.· The surcharge applies to new passenger vehicles, light trucks, SUV’s or vans which meet the pricing/fuel efficiency criteria outlined above.· There are a number of vehicles that do not have an EPA rating. In fact, under federal law, vehicles with gross vehicle weight ratings (GVWR) of 8,500 lbs. or higher, are not EPA-rated. New passenger vehicles that do not have an EPA rating are not subject to the LFIS surcharge, regardless of the vehicle’s gross sales/lease price.· State, Federal, County and Municipal vehicles, Emergency Vehicles, RV’s/motor homes, motorcycles, ATVs, boats, tractors, trailers and school buses are NOT subject to the LFIS and MVC Form OS/SS-14 is not required.· The LFIS assessment is 0.4% of a vehicle’s gross sales/lease price.· LFIS should be separately itemized and it is not subject to New Jersey Sales Tax.Members with questions about LFIS or about the changes in MVC’s procedures should contact Coalition headquarters at 609.883.5056 and ask for either Bob May (ext. 313) or Patrick Cox (ext. 350).