Fuel Inefficient Vehicle Fee

New passenger vehicles meeting one of the following criteria are subject to an additional fee payable to the New Jersey Motor Vehicle Commission:

• A U.S. Environmental Protection Agency (EPA) average fuel efficiency economy rating of less than 19 miles per gallon (mpg); or
• A sales or lease price of $45,000 or more, prior to any credit or offset resulting from any rebate or trade-in.

The fee is 0.4% of the sales or lease price. A vehicle with a sale or lease price greater than $45,000 that has an EPA fuel economy rating of 40 mpg or more, or is a certified zero emission vehicle, is not subject to the fee. The fee applies to new passenger vehicles purchased or leased in or outside of New Jersey.

(Reference New Jersey Statutes 39:3-8.4)