New Jersey Repeals "BoTax"
New Jersey Governor Chris Christie (R) has signed a bill that repeals the state’s so-called "BoTax." The bill (S-1988/A-3646) phases out a 6% tax on gross receipts from cosmetic procedures that was instituted in 2004. Examples of procedures that were taxable included cosmetic surgery, hair transplants, cosmetic injections, cosmetic soft tissue fillers, dermabrasion, chemical peels, laser hair removal, laser skin resurfacing, laser treatment of leg veins, sclerotherapy, and cosmetic dentistry.
The tax will be lowered to 4% on March 1 and to 2% on July 1, and will be completely eliminated as of July 1, 2013. The state was collecting about $11 million a year from the tax. The collections were put into a fund for medical care for the poor. A previous effort to repeal the tax was vetoed by former Governor Jon Corzine (D).