P.L. 2004, C. 53, imposes a gross receipts tax on the purchase of certain “cosmetic medical procedures.” Cosmetic medical procedures are medical procedures performed in order to improve the human subject’s appearance without significantly serving to prevent or treat illness or disease or to promote proper functioning of the body. The law provides that such procedures include, for example, cosmetic surgery, hair transplants, cosmetic injections, cosmetic soft tissue fillers, dermabrasion and chemical peels, laser hair removal, laser skin resurfacing, laser treatment of leg veins, sclerotherapy, and cosmetic dentistry. They do not include reconstructive surgery or dentistry to correct or minimize abnormal structures caused by congenital defects, developmental abnormalities, trauma, infection, tumors, or disease, including procedures performed in order to improve function or give the person a more normal appearance. The tax also applies to amounts charged for goods or facility occupancies, such as hospitalization or clinic stays, required for or directly associated with the cosmetic medical procedure.
The current rate is 6% on gross receipts from cosmetic procedures and related goods and occupancies. However, pursuant to P.L. 2011, c 189, which became effective January 17, 2012, the 6% rate will be reduced to 4% on taxable services performed on or after July 1, 2012 but before July 1, 2013, reduced further to 2% on taxable services performed on or after July 1, 2013 but before July 1, 2014 and eliminated entirely on taxable services performed on or after July 1, 2014.
For additional information on the phase out of the Cosmetics Medical Procedures Gross Receipts Tax, refer to the Notice of 2/18/2012.
Disposition of Revenues
Revenues are deposited in the State Treasury for general State use.