Effective November 19, 2024, the new ST-4ZEV for purchases and ST-4ZEV for leases of Zero Emission Vehicles (ZEV) are no longer required by the Division of Taxation to document the partial sales tax exemption. This is due to the complications dealers are having with maneuvering and programming the form in their DMS.
Dealers must use the regular ST-4 exemption certificate to document the sales tax exemption for all ZEV purchases and leases up to June 30, 2025. The statutory citation of “8.55” must be included in the required space on the form. The ST-4 must be retained for at least four (4) years. On July 1, 2025, the phaseout of the ZEV sales tax exemption will be complete and the full sales tax of 6.6250% will be collected on all ZEV sales.
For sales between October 1, 2024, and November 18, 2024, dealers should retain any ST-4ZEV collected for purchases and leases. In some cases, dealers have also collected the ST-4. Both can be kept. Dealers can also request that customers supply an ST-4 for those purchases and leases.
Also effective November 19, 2024, the ST-10 exemption certificate used for purchases of motor vehicles by non-residents no longer needs to be sent to the Division of Taxation. The completed ST-10 must be retained for at least four (4) years. The Division will update the ST-10 to remove the requirement.
Please stay tuned for updates as the Division of Taxation implements this change. The Division of Taxation will be updating its website with the relevant changes.
If dealers have questions about this topic or any other questions, contact Greyson P. Hannigan, NJ CAR’s Director of Legal & Regulatory Affairs at (609) 883-5056 – ext. 340 or via email at [email protected].