Medical: New Jersey Repeals Cosmetic Medical Procedures Tax
1/25/2012
On January 17, 2012, New Jersey Governor Chris Christie signed legislation repealing the cosmetic medical procedures gross receipts tax. A cosmetic medical procedure is any medical procedure performed on an individual that is directed at improving the patient’s appearance and that does not meaningfully promote proper function of the body or prevent illness or disease. The tax is paid for by the patient and collected by the persons responsible for billing the services. This tax has been in effect since 2004, raising approximately $11 million in revenue annually.
The tax repeal will take place in stages. The tax rate will drop from six percent to four percent as of July 1, 2012, then to two percent as of July 1, 2013, and full repeal will take effect as of July 1, 2014.
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