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WASHINGTON, Jan. 26 /PRNewswire-USNewswire/ — The American Academy of Dermatology Association (Academy Association) has urged the New Jersey Gov. Jon Corzine to follow the lead of the state’s legislature and sign a bill repealing the unpopular tax on cosmetic medical procedures enacted in June 2004.

The “Cosmetic Medical Procedures Gross Receipts Tax” imposes a 6 percent tax on a range of medical procedures that the state deems cosmetic, including cosmetic and dermatologic surgery, laser skin resurfacing, laser hair removal, cosmetic soft tissue fillers and injections, hair transplants, and cosmetic dentistry. The New Jersey state legislature unanimously approved a bill to repeal this tax on December 14, 2006.

“While the original intent of this tax was to fund indigent care in the state’s hospital system, our understanding is that the amount of revenue generated by this tax in its first year was only a fraction of the revenue that was expected when this bill was passed,” said dermatologist Stephen P. Stone, MD, FAAD, Academy Association president. “What may be happening is patients considering elective cosmetic surgery are driving to a neighboring state to undergo procedures without being taxed for it, saving hundreds of dollars.”

The Academy Association believes that this tax, originally designed as a luxury tax, is most likely affecting a disproportionate number of women in lower — and middle-income groups — not necessarily patients with the highest incomes.

A study conducted by the American Society of Plastic Surgery (ASPS) and published in the September 2005 issue of Plastic and Reconstructive Surgery found that the majority of people (71 percent) considering plastic surgery in the next two years had annual household incomes of $60,000 or less. Those polled represented all regions of the United States.

“As dermatologists, we see firsthand the dramatic impact that cosmetic surgery can have on our patients’ lives — particularly the boost in self- esteem it gives those who have lived with an undesirable physical trait, such as a port-wine stain birthmark or severe acne scars,” added Dr. Stone. “Our concern is that this is a tax on professional services, which unfairly targets dermatologists, plastic surgeons and other physicians who provide medical services that significantly improve patients’ overall quality of life. Other physicians and professionals in New Jersey — such as architects, engineers and attorneys — are not being taxed for their services, so why should our profession?”

The Academy Association reports that other states have considered a similar tax on cosmetic procedures, but to date New Jersey is the only state that has imposed such a tax.

Source: American Academy of Dermatology