Bill Text: NJ S1988 | 2010-2011 | Regular Session | Introduced
Bill Title: Phases out cosmetic medical procedure gross receipts tax.*
Spectrum: Moderate Partisan Bill (Democrat 8-2)
Status: (Engrossed - Dead) 2011-12-01 - Reported out of Assembly Committee, 2nd Reading [S1988 Detail]
Download: New_Jersey-2010-S1988-Introduced.html
Sponsored by:
Senator PAUL A. SARLO
District 36 (Bergen, Essex and Passaic)
Senator JOSEPH M. KYRILLOS, JR.
District 13 (Middlesex and Monmouth)
Co-Sponsored by:
Senator Oroho
SYNOPSIS
Phases out cosmetic medical procedure gross receipts tax over three-year period.
CURRENT VERSION OF TEXT
As introduced.
An Act phasing out the cosmetic medical procedure gross receipts tax, supplementing P.L.2004, c.53 (C.54:32E-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Notwithstanding the provisions of section 1 of P.L.2004, c.53 (C.54:32E-1), the tax which shall be paid pursuant to P.L.2004, c.53 (C.54:32E-1 et seq.) shall be imposed: (1) at the rate of 4% on the gross receipts from a cosmetic medical procedure performed on or after July 1, 2010 but before July 1, 2011, (2) at the rate of 2% on the gross receipts from a cosmetic medical procedure performed on or after July 1, 2011 but before July 1, 2012, and (3) at the rate of 0% on the gross receipts from a cosmetic medical procedure performed on or after July 1, 2012.
2. This act shall take effect immediately.
STATEMENT
This bill phases out the cosmetic medical procedure gross receipts tax beginning July 1, 2010. Under its provisions, the six percent rate of tax currently imposed on the gross receipts from cosmetic medical procedures is reduced by two percent per year over a three-year period: (1) on or after July 1, 2010 but before July 1, 2011 the rate of tax imposed will be 4%, (2) on or after July 1, 2011 but before July 1, 2012 the rate of tax imposed will be 2%, and (3) on or after July 1, 2012 the rate of tax will be 0%.
The gross receipts tax is a State tax imposed on the purchase of cosmetic medical procedures. The tax applies to all amounts paid for services and all amounts paid for any property or occupancy required for or associated with the performance of a cosmetic medical procedure. It is paid by the subject and collected by persons responsible for billing the procedure.
Under current law, a cosmetic medical procedure is any medical procedure performed on an individual which is directed at improving the procedure subject's appearance and which does not meaningfully promote the proper function of the body or prevent or treat illness or disease. Examples of taxable procedures include cosmetic surgery, hair transplants, cosmetic injections, cosmetic soft tissue fillers, dermabrasion and chemical peel, laser hair removal, laser skin resurfacing, laser treatment of leg veins, sclerotherapy, and cosmetic dentistry.
The phase-out provided by the bill is intended to gradually alleviate the financial and administrative burdens associated with the tax. Since the gross receipts tax was imposed in 2004, the tax has increased overall costs for recipients of cosmetic medical procedures, and imposed an administrative burden on the medical offices billing the procedures and the State agencies responsible for administration and enforcement of the tax.
