Cosmetic surgery subject to New Jersey tax.

As of September 1, 2004, the 6% gross receipts tax will be imposed on certain cosmetic medical procedures intended to improve someone’s appearance, but not to prevent or treat a medical condition. Specific procedures include, but are not limited to, cosmetic injections, hair transplants, dermabrasion and chemical peels, laser hair removal, and cosmetic dentistry. The tax will also apply to fees directly associated with the procedures such as hospitalization stays. However, surgery and dentistry for reconstructive purposes or to correct or minimize congenital defects are not subject to the tax. Providers of cosmetic medical procedures should collect the tax from the people upon whom the services are performed and report and remit the tax quarterly by the twentieth day of the month following the close of the quarter. (Notice, New Jersey Division of Taxation, July 28, 2004)

Posted on September 3, 2004