zingat
Well-Known Member
- First Name
- Dan
- Joined
- Mar 12, 2019
- Threads
- 6
- Messages
- 130
- Reaction score
- 59
- Location
- Lawrenceville, NJ
- Vehicle(s)
- 2019 Jeep Wrangler Rubicon
- Occupation
- Jeepster !
- Vehicle Showcase
- 1
- Thread starter
- #1
Just purchased my 2019 JLUR 2.0T from Criswell Jeep, MD.
I live in NJ and this was an out of state purchase as Criswell provided for a good deal (8% below Invoice price).
On finalization of paper work with finance, I was informed about a "Luxury Tax" charged by the state of NJ.
https://www.nj.gov/treasury/revenue/njbgs/luxvehs.shtml
Details reveal that NJ has a surcharge of 0.4% of the sold price for vehicles priced above $45000 and with a EPA rating (fuel economy) of less than 19 MPG.
As per info from Jeep and EPA (FuelEconomy.gov), on paper the Jeep Wrangler Rubicon with 2.0T and Auto trans has the following gas mileage;
22 mpg - city
24 mpg - highway
22 mpg - combined
The final paper work included approximately $200 as luxury tax (0.4% on $500676).
The dealer seems to use a third party registration service of some sort (AutoRegUSA) that automatically calculates luxury tax if it owed. So now I am left wondering why the Luxury tax was assessed in the first place and how do I avoid it. The dealer has no way to bypass the system and I was informed that the dealer has to collect it on sale and that I must duke it out with NJ DMV when I file my registration and paper work.
Anybody here have to pay the NJ luxury tax and/or know how to avoid it?
I live in NJ and this was an out of state purchase as Criswell provided for a good deal (8% below Invoice price).
On finalization of paper work with finance, I was informed about a "Luxury Tax" charged by the state of NJ.
https://www.nj.gov/treasury/revenue/njbgs/luxvehs.shtml
Details reveal that NJ has a surcharge of 0.4% of the sold price for vehicles priced above $45000 and with a EPA rating (fuel economy) of less than 19 MPG.
As per info from Jeep and EPA (FuelEconomy.gov), on paper the Jeep Wrangler Rubicon with 2.0T and Auto trans has the following gas mileage;
22 mpg - city
24 mpg - highway
22 mpg - combined
The final paper work included approximately $200 as luxury tax (0.4% on $500676).
The dealer seems to use a third party registration service of some sort (AutoRegUSA) that automatically calculates luxury tax if it owed. So now I am left wondering why the Luxury tax was assessed in the first place and how do I avoid it. The dealer has no way to bypass the system and I was informed that the dealer has to collect it on sale and that I must duke it out with NJ DMV when I file my registration and paper work.
Anybody here have to pay the NJ luxury tax and/or know how to avoid it?
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