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Cosmetic Medical Procedures Gross Receipts Tax
(N.J.S.A. 54:32E-1)


Chapter 53 of the Laws of 2004 was passed by the Legislature and enacted on June 29, 2004. Beginning September 1, 2004, it 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. If you do not provide services, products or occupancies related to “cosmetic medical procedures," you are not subject to the provisions of this law.

Charges for medical procedures, tangible personal property, or occupancies that will be covered by medical insurance will be presumed not primarily “cosmetic” in nature and will therefore not be subject to the cosmetic medical procedures gross receipts tax. Charges for procedures, tangible personal property, and occupancies that are deductible as “medical expenses” for purposes of federal income tax will also generally be exempt from the cosmetic medical procedures gross receipts tax. Cosmetic medical procedures that are not deemed to be deductible medical expenses for federal income tax purposes will be subject to this gross receipts tax. For example, charges for teeth whitening will be taxable, while charges for breast reconstruction or for vision correction by laser treatment will not be subject to the gross receipts tax.

The provider of services, goods or occupancies required for, or directly associated with the cosmetic medical procedure will collect the tax from the person on whom the cosmetic medical procedure is performed. If more than one service provider bills for services directly related to the same cosmetic medical procedure, for example, a surgeon and an anesthesiologist, each service provider must collect the gross receipts tax on the portion of the gross receipts billed for that provider’s own services. A provider of goods, services, or occupancies who fails to charge and collect and remit the tax as required may be held personally liable for the tax, except for “bad debts” within the meaning of the Internal Revenue Code. The tax will not apply to services that are only indirectly related to the cosmetic medical procedure. For example, fees charged for evaluation and referral by a primary care physician or for consultation or treatment by a psychiatrist will not be subject to the tax.

All providers of cosmetic medical procedures, tangible personal property or occupancies that will be subject to the cosmetic medical procedures gross receipts tax must register to collect this tax at least two weeks before providing any such services, goods or occupancies after August 31, 2004. Such providers may include, but are not limited to, any surgeons, anesthesiologists, nurses, dermatologists, electrologists, hospitals, clinics, spas, hair replacement facilities or sellers of medical supplies that may, at some time, perform cosmetic medical procedures, or provide the subject with medical facility occupancies or goods required or directly associated with such procedures. Providers who are not already registered for New Jersey tax purposes may register online. (Select “Register a Business for Tax and Employer Purposes”). Those providers who are already registered must update their registration information by reporting that they are eligible to collect the cosmetic medical procedures gross receipts tax.

The online service requires providers to use their Federal or New Jersey taxpayer identification number and Cosmetic Medical Procedures Gross Receipts Tax PIN (Personal Identification Number) or business name. The Division of Taxation issues PINs to qualified businesses upon registering to collect the CMPGRT. Taxpayers that do not have a PIN may make an electronic request for one when attempting to file a return online. The Client Registration Bureau of the Division of Revenue at (609) 292-9292 with questions pertaining to registration.

The provider must collect the tax on receipts for cosmetic medical procedures performed on or after September 1, 2004. The tax shall be reported and remitted quarterly, by the twentieth of the month following the calendar quarter when the provider received partial or full payment for the taxable cosmetic medical services rendered. The first cosmetic medical procedures gross receipts tax return and remittance was due October 20, 2004. Further instructions will be sent to providers after registration.

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.


Last Updated: Thursday, 06/06/13



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