TRENTON – The Senate Budget Committee has released bill S1988, which phases out the 6 percent cosmetic medical procedure gross receipts tax beginning July 1, 2010. The bill would reduce the tax by two percent per year over a three-year period. The tax will be totally gone by July 2012.
Senate Budget Committee Chairman Paul Sarlo said the bill is intended to bring specialty surgeons who moved out of state back to New Jersey. He added that it was “a mistake” to implement this policy in the beginning.
The Medical Society of New Jersey and New Jersey Dental Association were among the groups supporting the bill.
Other bill clears
S1015, which would provide for corporation business tax and gross income tax credits to businesses that have employees who are also members of the National Guard or a reserve component of the Armed Forces of the United States and receive mobilization orders for active duty service, also cleared without disagreement.
The amount of credit shall be equal to 20 percent of a salary but not to exceed $2,000 for each qualified employee.
UEZ tax deduction bill advances
Also sailing through the committee was S1885 and S2354, as substituted, which would establish, for a period of five years, a new tax deduction for taxpayers providing loans to business located within urban enterprise zones (“UEZs”). This substitute bill would permit lenders making loans directly to qualified UEZ business to receive tax-free treatment of the interest income earned on those loans. The tax-free treatment of the interest income will serve as an incentive that will promote lending to small businesses within UEZs.