NJ doesn't charge sales tax on new EVs

[Merle]

NJ doesn't collect sales tax on the purchase of new EVs (it's on the Tesla web site) and a brief search here clearly shows that you don't need to even be a resident of NJ to register a vehicle there (just need insurance).

I'm thinking of registering it in NJ using a NJ address and insurance for NJ. But with this COVID-19 thing, I've been avoiding those States (NJ, NY, MA) like the literal plague.

Has anyone registered their vehicles in NJ, while residing elsewhere? Did you need to take your vehicle in for an inspection, or did they just mail the plates / title to you?

Tesla tells me they can register the vehicle anywhere, as long as you have an address (there) to accept mail that would be sent. Not a big deal as I have family there.

 

[DerbyDave]

This is potential fraud. California has requirements for registering vehicle by residents. If you title your car in a state you do not reside in, and have insurance for an address where the car is not primarily parked, you will run into tax, insurance, and legal problems -- eventually. Some states require you to title (and tax) any car bought in the state, but that would be temporary in order for you to drive it to your resident state and title and register the car there. Your insurance company would deny any claims.

 

[HankLloydRight]

I’m no expert but I think you do need a NJ drivers license.

 

[Merle]

It's from this old thread ... just looking for more up to date information!

Out of state CPO owners who bought in New Jersey

Just put a deposit down on a CPO P85 looking for delivery second week of May. Is there anyone out there that has taking advantage of the no sales tax incentive or had any issues registering it in NJ and then moving back to your home state?

teslamotorsclub.com

 

[aerodyne]

No free lunch...not even in Jersey.

 

[Merle]

Reading from the Tesla website: Registering Your Tesla

> Tesla will complete registration and mail your title and registration card.
>
> Tesla will mail your plates and registration once processing is complete.

And based upon what I'm reading (old threads ... so yes I did use the search function, lol) and heard from Tesla, I should be able to pick it up in Fremont CA for a drive-away w/o paying CA tax to NJ if I so choose. Just need to put down the "registration address" when you get to that step on the vehicle option purchase portion. Further down, they do ask for ID (TWIC, TSA, Passport, or even ID cards ... all issued by the US Government) should be sufficient.

 

[dmurphy]

NJ doesn't collect sales tax on the purchase of new EVs (it's on the Tesla web site) and a brief search here clearly shows that you don't need to even be a resident of NJ to register a vehicle there (just need insurance).

I'm thinking of registering it in NJ using a NJ address and insurance for NJ. But with this COVID-19 thing, I've been avoiding those States (NJ, NY, MA) like the literal plague.

Has anyone registered their vehicles in NJ, while residing elsewhere? Did you need to take your vehicle in for an inspection, or did they just mail the plates / title to you?

Tesla tells me they can register the vehicle anywhere, as long as you have an address (there) to accept mail that would be sent. Not a big deal as I have family there.

Be super careful. It all sounds like a great idea until it collapses.

NJ is very aware of people trying things like this; it’s been going on for years. As @DerbyDave pointed out, insurance especially WILL come after you if you have an accident. If you can’t definitively prove residence when you have an accident in California, you’re going to be in for a bad time.

for many years, NJ folks have been registering their cars in PA because of the lower insurance rate ... sounds great until their insurance company figures out they don’t live in PA. Happened to a buddy of mine who actually had two residences - one in NJ and PA. Worked in NY. The insurance company wanted nothing to do with him after an accident. Was a real nightmare.
So my advice is to be careful and remember - every scheme you think of, they have too.

 

[Drew-MS]

NJ doesn't collect sales tax on the purchase of new EVs (it's on the Tesla web site) and a brief search here clearly shows that you don't need to even be a resident of NJ to register a vehicle there (just need insurance).

I'm thinking of registering it in NJ using a NJ address and insurance for NJ. But with this COVID-19 thing, I've been avoiding those States (NJ, NY, MA) like the literal plague.

Has anyone registered their vehicles in NJ, while residing elsewhere? Did you need to take your vehicle in for an inspection, or did they just mail the plates / title to you?

Tesla tells me they can register the vehicle anywhere, as long as you have an address (there) to accept mail that would be sent. Not a big deal as I have family there.

No way is this accurate. Need a NJ license or proof of NJ residence. Trust me, many people in surrounding states have looked into this. My plaid order came out to 122k but $132k with NY tax. I'd jump all over it to save $10k if I could.

 

[HankLloydRight]

No way is this accurate. Need a NJ license or proof of NJ residence. Trust me, many people in surrounding states have looked into this. My plaid order came out to 122k but $132k with NY tax. I'd jump all over it to save $10k if I could.

Exactly. If this were a thing, everyone would be doing it. Maybe the OP can fake his residence with his relatives in NJ, but that would be tax fraud. And you're also lying to the insurance company, so good luck if/when you need to file a claim, and they find out you're not actually a NJ resident.

for many years, NJ folks have been registering their cars in PA because of the lower insurance rate

Funny, because back in the 80's getting car insurance in Philly was very expensive compared to NJ. My housemate registered and insured his car at his parents house in NJ (he also had a NJ license), but lived and "garaged" the car on the streets of Philadelphia.

So many people did this back then (I don't know about now) that insurance companies started to crack down. There was a news story about a Philly woman who had insured her car in NJ and the insurance company found out about it when she went to file a collision claim, they denied her claim and cancelled her policy. But they also invalidated her policy for the 10 years she had been paying it, and refunded her all those premiums, so in the end, she made out significantly better than the one collision claim she made!

 

[mk677]

NJ doesn't collect sales tax on the purchase of new EVs (it's on the Tesla web site) and a brief search here clearly shows that you don't need to even be a resident of NJ to register a vehicle there (just need insurance).

I'm thinking of registering it in NJ using a NJ address and insurance for NJ. But with this COVID-19 thing, I've been avoiding those States (NJ, NY, MA) like the literal plague.

Has anyone registered their vehicles in NJ, while residing elsewhere? Did you need to take your vehicle in for an inspection, or did they just mail the plates / title to you?

Tesla tells me they can register the vehicle anywhere, as long as you have an address (there) to accept mail that would be sent. Not a big deal as I have family there.

I did it years ago, but I did own a home there then. the hitch is that you must take delivery in NJ

 

[Drew-MS]

I did it years ago, but I did own a home there then. the hitch is that you must take delivery in NJ

Actually the hitch is you must have a residence in NJ. If someone from outside of NJ has a NJ address and can avoid sales tax, the car must be registered and insured in NJ. This can get sketchy with a driver’s license from outside of NJ.

 

[Stirthepot]

i strongly suggest you reconsider committing insurance fraud. this product is used by all the insurance carriers and its very easy for them to determine where the vehicle is actually primarily driven.

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[mk677]

Actually the hitch is you must have a residence in NJ. If someone from outside of NJ has a NJ address and can avoid sales tax, the car must be registered and insured in NJ. This can get sketchy with a driver’s license from outside of NJ.

absolute nonsense! I did this exact thing while driving on a FLA driver's license. I bought titled and insured the car at my NJ address. NO BIG DEAL.

 

[Drew-MS]

absolute nonsense! I did this exact thing while driving on a FLA driver's license. I bought titled and insured the car at my NJ address. NO BIG DEAL.

I was primarily referring to people in NY or other surrounding states who try to register in NJ to avoid the tax. Since you have a valid NJ address, of course it’s no big deal.

 

[mk677]

I was primarily referring to people in NY or other surrounding states who try to register in NJ to avoid the tax. Since you have a valid NJ address, of course it’s no big deal.

wasn't that you who asserted that I also had to have a NJ driver's license as well?

 

[Drew-MS]

wasn't that you who asserted that I also had to have a NJ driver's license as well?

I didn’t say you had to have a NJ license. I said it gets sketchy but I should have been more specific: It gets sketchy when someone with a license from NY CT PA registers an EV in NJ. It’s sort of obvious why that person registered the EV in NJ, especially if the person has another car(s) registered in the state of their driver’s license. If someone has a valid NJ address, go for it.
I don’t work for the IRS nor any state government so I don’t really care to be honest. Just giving my opinion after I looked into it for myself.

 

[Tigers]

Who the hell is buying a $100k car that's willing to take the risk to commit fraud for 5-10k. Lord.

If you can't afford the tax you shouldn't be buying the car. Also if you don't like the tax vote for different politicians who make your crappy laws.

 

[mk677]

Who the hell is buying a $100k car that's willing to take the risk to commit fraud for 5-10k. Lord.

what fraud?
I own a home in NJ and I also own a home in Florida, I am legally a Florida resident.

if I buy a car in NJ and register it and insure it in NJ to take advantage of the tax savings could you explain what fraud is being committed?

one time I bought a car in NJ and registered it in Florida. NJ came after me for the sales taxes due on the purchase regardless of where the car was registered.

as per NJ law if you own real estate in NJ and buy a car in NJ, NJ is entitled to collect sales taxes on that car regardless of where it is titled and registered.
that in my book is governmental fraud.
fortunately I was able to get Fl to refund the sales taxes that they collected and paid my NJ sales taxes due per their arcane laws.

 

[dmurphy]

I didn’t say you had to have a NJ license. I said it gets sketchy but I should have been more specific: It gets sketchy when someone with a license from NY CT PA registers an EV in NJ. It’s sort of obvious why that person registered the EV in NJ, especially if the person has another car(s) registered in the state of their driver’s license. If someone has a valid NJ address, go for it.
I don’t work for the IRS nor any state government so I don’t really care to be honest. Just giving my opinion after I looked into it for myself.

Well, exactly. Buying and registering a car in NJ, when it’s going to spend all its time in CA (as the OP’s location shows) is a real stretch. It might work, but if your insurance company can show it’s never been garaged in NJ, you could be in for a world of hurt.

 

[mk677]

Well, exactly. Buying and registering a car in NJ, when it’s going to spend all its time in CA (as the OP’s location shows) is a real stretch. It might work, but if your insurance company can show it’s never been garaged in NJ, you could be in for a world of hurt.

what constitutes being garaged in NJ, 1 night? 10 nights? 30 nights? most nights? every night?