Bill Text: NJ A3646 | 2010-2011 | Regular Session | Introduced
Bill Title: Phases out cosmetic medical procedure gross receipts tax.*
Spectrum: Moderate Partisan Bill (Democrat 4-1)
Status: (Introduced - Dead) 2011-12-01 - Reported out of Assembly Comm. with Amendments, 2nd Reading [A3646 Detail]
Download: New_Jersey-2010-A3646-Introduced.html
Sponsored by:
Assemblyman GORDON M. JOHNSON
District 37 (Bergen)
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, 2011 but before July 1, 2012, (2) at the rate of 2% on the gross receipts from a cosmetic medical procedure performed on or after July 1, 2012 but before July 1, 2013, and (3) at the rate of 0% on the gross receipts from a cosmetic medical procedure performed on or after July 1, 2013.
2. This act shall take effect immediately.
STATEMENT
This bill phases out the cosmetic medical procedure gross receipts tax beginning July 1, 2011.
Under the bill, 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, 2011 but before July 1, 2012 the rate of tax imposed will be 4%, (2) on or after July 1, 2012 but before July 1, 2013 the rate of tax imposed will be 2%, and (3) on or after July 1, 2013 the rate of tax will be 0%.
The cosmetic medical procedures gross receipts tax is a State tax imposed on the purchase of cosmetic medical procedures. The tax applies to amounts paid for services and for any property or occupancy required for, or associated with, the performance of a cosmetic medical procedure, and is paid by the subject of the procedure and collected by persons responsible for billing the services.
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 will 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 charged with the administration and enforcement of the tax.
