Bill Text: NJ S735 | 2012-2013 | Regular Session | Introduced
Bill Title: Phases out cosmetic medical procedure gross receipts tax.
Spectrum: Moderate Partisan Bill (Democrat 8-2)
Status: (Failed) 2012-05-24 - Withdrawn from Consideration [S735 Detail]
Download: New_Jersey-2012-S735-Introduced.html
STATE OF NEW JERSEY
215th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2012 SESSION
Sponsored by:
Senator PAUL A. SARLO
District 36 (Bergen and Passaic)
Senator JOSEPH M. KYRILLOS, JR.
District 13 (Monmouth)
Co-Sponsored by:
Senators Oroho, Gordon, Ruiz, Turner, Stack, Cunningham, Van Drew and Beach
SYNOPSIS
Phases out cosmetic medical procedure gross receipts tax.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
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 the first day of the calendar quarter beginning after the date of enactment of P.L. , c. (pending before the Legislature as this bill) 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 over three steps beginning on the first day of the first calendar quarter starting after the date of enactment.
The bill reduces the 6% tax rate currently imposed on the gross receipts from cosmetic medical procedures: (1) to 4% rate with the first calendar quarter beginning after the date of enactment; (2) to 2% from July 1, 2012 until July 1, 2013, and (3) to 0% on and after July 1, 2013, effectively ending the imposition of the tax.
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. The tax is reported and paid to the Director of the Division of Taxation on a quarterly basis.
A taxed "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.
