Senator JIM WHELAN
District 2 (Atlantic)
Establishes mileage-based fee on passenger vehicles; exempts passenger vehicles from motor fuels tax.
CURRENT VERSION OF TEXT
An Act concerning fees imposed on passenger vehicles supplementing Titles 39 and 54 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. The vehicle miles traveled fee established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be administered by the Chief Administrator of the New Jersey Motor Vehicle Commission in a manner in which the chief administrator shall deem appropriate, and at a minimum, shall permit a vehicle owner to remit payment to the commission on a monthly or an annual basis.
b. The calculation of vehicle miles traveled shall be made in the following manner:
(1) At the time of purchase, the odometer reading from the vehicle’s title shall be recorded by the commission.
(2) During any passenger vehicle inspection conducted pursuant to R.S.39:8-1 et seq., the odometer of the vehicle subject to inspection shall be recorded by the commission.
(3) At the time of sale, the odometer reading from the vehicle’s title shall be recorded by the commission.
(4) The owner of the vehicle shall be responsible for annually reporting the odometer reading to the commission in a manner prescribed by the commission.
(5) The commission may audit a vehicle by requiring a vehicle owner to report to an inspection station to review and verify the odometer reading.
(a) In the event that a self-reported reading is deemed fraudulent by the chief administrator, the chief administrator shall administer a fine in addition to collecting unpaid fees and appropriate late payment penalties.
(b) The chief administrator shall administer a fine to any vehicle owner required to submit to an odometer audit if the vehicle owner does not report to an inspection station within a reasonable time period, as determined by the chief administrator.
c. The chief administrator shall issue a sticker to be affixed to the license plate of a motor vehicle indicating that the vehicle is exempt from the motor fuels tax and is subject to the vehicle miles traveled fee established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
d. All funds collected pursuant to this section shall be credited to the “Transportation Trust Fund Account” established pursuant to section 20 of P.L.1984, c.73 (C.27:1B-20).
2. Every passenger vehicle registered and titled in the State shall be subject to a vehicle miles traveled fee in an amount equal to 0.83906 cents per mile.
3. a. Fuel used by passenger vehicles subject to the vehicle miles traveled fee imposed by section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be exempt from the tax imposed by the “Motor Fuel Tax Act,” P.L.2010, c.22 (C.54:39-101 et seq.).
b. Only fuel dispensed into a motor vehicle’s fuel supply tank at the point of sale shall be exempt from the tax imposed by the “Motor Fuel Tax Act,” P.L.2010, c.22 (C.54:39-101 et seq.).
c. Retail dealers, having made sales of motor fuel to consumers exempt from the tax, may apply for a refund from the director by submitting an application and supporting documentation as the director shall reasonably prescribe.
4. This act shall take effect on the first day of the 18th month after the date of enactment.
This bill imposes a fee on passenger vehicles registered and titled in the State of New Jersey on the miles traveled by those vehicles. The fee is set at 0.83906 cents per mile traveled and is to be administered by the New Jersey Motor Vehicle Commission (MVC). The MVC will calculate the fee owed by each vehicle owner through odometer readings. The first and last odometer reading for each vehicle will be recorded by the MVC from the vehicle title at the time that the vehicle is purchased or sold. Subsequent readings will be self-reported by vehicle owners, with verification of those self-reported readings taking place each time a vehicle is inspected or upon an audit by the MVC if it suspects fraudulently reported odometer readings. If an odometer reading is found to be fraudulently reported, a vehicle owner will be subject to a fine, payment of fees owed, and late payment penalties as determined by the chief administrator. A vehicle owner that does not report for the odometer audit in a timely fashion shall also be subject to a fine. All funds collected through this fee shall be deposited into the Transportation Trust Fund Account.
This bill also exempts a vehicle subject to the vehicle miles traveled fee from the State motor fuels tax. Each vehicle in the program is required to have a sticker on its license plate indicating that it is subject to the fee and is not to be charged any motor fuels
taxes by a gas station. Any gas purchased that is not for use in the vehicle is still subject to the motor fuels tax. Gas stations are permitted to apply for a refund of any motor fuels taxes paid on the sales of motor fuels to exempt vehicles. The bill is scheduled to take effect 18 months after the date of enactment.