Why certain NJ drivers are getting a $250 bill in the mail

⚫ The annual fee will increase by $10 each year

⚫ New buyers need to pay four years' worth of fees

⚫ NJ's gas tax will increase in the new year

To help keep New Jersey's pot of money for transportation projects afloat, drivers of gasoline-powered vehicles will be paying a higher gas tax for each of the next five years — a 2-cent increase annually.

Electric vehicle owners have to pay their share as well, but it's not being paid through pennies at the pump.

A yearly fee of at least $250 kicked in on July 1. Zero emission vehicle owners are getting letters in the mail when their registration is close to the expiration date. In most cases, the extra fee is being tacked on to the existing registration fee.

Per a law signed by Gov. Phil Murphy in March, the new fee will increase by $10 annually, until it reaches $290 in 2028.

"The fee applies to any vehicle certified as a ZEV pursuant to the California Air Resources Board ZEV standards for the applicable model year," the New Jersey Motor Vehicle Commission said. "A notice of the new electric vehicle fee is being included with all vehicle registration renewal applications, which are mailed to New Jersey drivers two to three months prior to the expiration of their vehicle’s annual registration."

The fee can be paid by mail, through an agency appointment, or at NJMVC.gov.

The law was designed to provide billions of dollars for New Jersey's Transportation Trust Fund. It includes a 2-cent yearly gas tax hike, beginning on Jan. 1.

What about new EV buyers?

For new EV buyers, four years' worth of the additional fee are added to the upfront cost. In general, four years of registration fees are part of all dealership vehicle purchases in New Jersey.

"What it is, quite frankly, is sticker shock for electric vehicle buyers," said Jim Appleton, president of the New Jersey Coalition of Automotive Retailers.

Appleton said it's right to expect EV owners to pay their fair share into the Transportation Trust Fund, but this route "makes no sense."

"This thousand-dollar fee is an obstacle," he said. "It adds $10, $15, $20 a month to their monthly payment, which is consequential for a lot of buyers."

RELATED: NJ launches income-based incentive for EV buyers

Making matters worse for folks interested in going green, Appleton said, a sales tax exemption on zero emission vehicle purchases is set to expire on Oct. 1.

"At the same time, the governor is imposing strict new mandates on the industry to sell more of these vehicles," Appleton said.

New Jersey's plans call for a complete phase-out of the sale of new gas-powered vehicles by the year 2035. By 2027, at least 51% of all new car sales in New Jersey must be electric vehicles.

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