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Latest Information Regarding Surcharge & Sales Tax Increase

Aug 01, 2006

For the past week, NJ CAR staffers have been responding to hundreds of telephone calls and e-mails from Coalition members with regard to the increase in the sales tax rate as well as the new Supplemental Titling Fee (0.4% levy) for certain luxury and, what the State deems “fuel-inefficient” vehicles.Both the increase in the rate of sales tax and the 0.4% levy become effective at 12:01 AMon Saturday, July 15, 2006.The law requires that dealers collect the increased rate of sales tax, itemize and collect (where applicable) the 0.4% Supplemental Titling Fee and to hold such collections for paying over to the State. There is, however, NO mandate that dealerships have their DMS Systems, or their Retail Order Forms, Lease Agreements, etc. revised by July 15. Those changes can be made as time permits.Please see the links below for more information:· NJ CAR’s Questions & Answersregarding the 0.4% levy on luxury/“fuel-inefficient” vehicles and the increase in NewJersey’s Sales Tax Rate to 7%; [NOTE: The latest information, including a shorter, revised Q&A was posted on September 8, 2006]·Copy of the MVC’s new title application form, captioned: Application for Certificate of Ownership for a New Vehicle. Keep in mind that the Application for Certificate of Ownership for a New Vehicle must be signed by a representative of the dealership that is currently listed on the Signature Card on file in the Business License Services Unit at MVC in Trenton.For more detailed information regarding the Supplemental Titling fee and its impact on your Motor Vehicle paperwork, please review the July 19th story titled “Motor Vehicle Update” also posted on the Public side of the NJ CAR website.NJ CAR urges members to share this memo and its enclosures with all key staff members in your dealership.The MVC has agreed that, for the period of July 15 through July 22, 2006, MVC agencies will not reject new car/truck title requests that are not accompanied by the MVC’s new title application form; however, dealers will be required (retroactively) to complete the forms and mail them to the MVC, as follows:New Jersey Motor Vehicle CommissionOperations SupportP.O. Box 681Trenton, NJ 08666-0681Beginning July 22, 2006, the MVC will instruct its motor vehicle agencies to begin rejecting work for any new car/truck title request that is not accompanied with a completed Application for Certificate of Ownership for a New Vehicle for all new vehicles sold on and after July 15, 2006.