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A 6010

Relates to unfair claim settlement practices

2025 Regular Session Introduced by Karl Brabenec and 10 co-sponsors

Cuts New Jersey sales tax on qualifying used motor vehicles by 50%, creating a half-rate for private, casual, and dealer sales and lowering buyers' costs.

PRINT NUMBER 6010A
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Bill Summary · A 6010

Summary — A6010 (Print 6010A)

Title: Relates to unfair claim settlement practices / reduced sales tax on used motor vehicles
Status: PRINT NUMBER 6010A
Introduced: November 17, 2025 (version A6010A available)
Statutory reference: Supplements P.L.1966, c.30 (C.54:32B-1 et seq.)

Purpose

The bill reduces the sales and use tax charged on retail sales of used motor vehicles by 50%, effectively establishing a half-rate for qualifying secondhand vehicles. The stated intent is to lower the tax burden on buyers of used passenger cars, motorcycles, motor homes, and off‑road vehicles regardless of whether the sale is private, casual, or through a dealer.

Key provisions

  • Creates a partial exemption: 50% of the sales and use tax on the retail sale receipt for a qualifying used motor vehicle is exempt.
  • Defines "used motor vehicle" to include passenger motor vehicles, motorcycles, motor homes, and off‑road vehicles whose title or possession has been transferred from the person who first acquired it from the manufacturer or dealer (i.e., secondhand vehicles).
  • Applies to all sale types: private sales, casual sales, and sales by motor vehicle dealers.
  • Specifies the reduced tax rate example: when applied to the current New Jersey sales tax rate in the bill text, the reduced rate would be 3.3125% of the sale receipt (i.e., 50% of the existing rate referenced in the statement).
  • Effective date: the act takes effect on the first day of the second month after enactment.

Who would be affected

  • Buyers of qualifying used motor vehicles: lower sales tax liability at purchase.
  • Private sellers and casual sellers: purchasers in private transactions would benefit from the reduced tax.
  • Motor vehicle dealers: retail sales of qualifying used vehicles would be taxed at the reduced rate.
  • State and local governments: reduced tax collections from used vehicle transactions; municipalities that share in sales tax revenues could see lower receipts.
  • No change to taxation of new motor vehicle sales.

Fiscal and policy implications

  • Revenue impact: the state (and local revenue-sharing partners, if applicable) would collect roughly half as much sales tax on qualifying used vehicle sales compared to current collections — exact fiscal effect would depend on the volume and average price of used vehicle sales and is not provided in the bill.
  • Market effects: could lower purchase costs for consumers, potentially encourage more transactions in the used vehicle market.

Sponsors and related legislation

  • Primary sponsor: Larinda Hooks. Cosponsors: Charles Fall; Jessica Gonzalez‑Rojas; Deborah Glick; Karl Brabenec; Rebecca Kassay; Harry B. Bronson; Micah Lasher; Al Taylor; Yudelka Tapia; Paula Kay.
  • Related/prior-session bills: A7285, A7139. Companion: S166.

Legislative actions (as provided)

  • 2025-11-17: Introduced in the Assembly; Referred to Assembly Transportation and Independent Authorities Committee
  • 2025-05-15: PRINT NUMBER 6010A; Amend and recommit to Insurance (entries repeated)
  • 2025-02-25: Referred to Insurance (entries repeated)

Note: the bill text and statement explicitly describe the half‑rate approach and the effective timing formula; a formal fiscal estimate would be required to quantify revenue impacts.

Compiled from official sources — confirm details with the bill’s official record.

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