government
New Jersey ends cosmetic procedures tax
NEWS IN BRIEF — Posted Jan. 30, 2012
New Jersey Gov. Chris Christie on Jan. 17 signed a bill phasing out a 6% tax on gross receipts from cosmetic procedures. The New Jersey House had adopted the measure unanimously on Jan. 9, and the Senate approved it 33-2 on Sept. 26, 2011.
The repeal was supported by Stop Medical Taxes, a coalition largely of physician organizations that oppose taxes on medical procedures. Members include the American Medical Association and the American Society for Dermatological Surgery. The Medical Society of New Jersey also actively supported the repeal, said Lawrence Downs, the association's CEO and general counsel.
The repeal will reduce state tax revenues by about $10.8 million a year starting in 2014, the first year of full repeal. The bill reduces the cosmetic procedures tax to 4% retroactive to July 1, 2011, 2% on July 1, 2012, and fully repeals it on July 1, 2013.
New Jersey authorized the tax in 2004. Its repeal leaves Connecticut as the only state with a tax on cosmetic procedures.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2012/01/30/gvbf0130.htm.
