NYC Panel Mulls Tax on Cosmetic Surgery

NYC Panel Mulls Tax on Cosmetic Surgery

NEW YORK (Feb. 13) - A tummy tuck may someday make a cosmetic surgery patient's wallet thinner, too, if a New York City tax panel has its way.

Imposing sales tax on Botox treatments, breast surgery and other cosmetic procedures could bring in $62 million in revenue for the city, according to the Independent Budget Office.

The suggestion was among nearly 70 options included in a report released by the publicly funded, nonpartisan agency on Thursday.

"The business of cosmetic enhancements, including both surgical and nonsurgical procedures, is one of the fastest-growing industries in the United States," the report said, adding that the number of procedures more than quadrupled between 1997 and 2001.

Cosmetic procedures such as collagen injections and laser treatments are not subject to sales tax now because they are considered medical procedures, the agency said.

Another suggestion in the report was a "latte tax" similar to the 10-cent tax on coffee drinks that Seattle voters recently rejected. The agency said such a tax could bring in $12 million a year in New York.

Other tax or cost-cutting options included restoring the commuter tax, reinstating fares on the Staten Island ferry, eliminating transportation for private school students and reducing the number of paid holidays for city workers.

The office of Mayor Michael R. Bloomberg was not impressed by the proposals, spokesman Jordan Barowitz told The New York Times.

"Where's the plan to buy 50,000 lottery tickets?" he asked.

Agency suggests city could tax cosmetic surgery, lattes

NEW YORK (AP) _ Taxing plastic surgery and other cosmetic procedures could bring in $62 million in revenue for the city, according to the city's Independent Budget Office.

The suggestion to collect taxes on cosmetic surgery was among nearly 70 options included in a report released by the publicly funded, nonpartisan agency on Thursday.

Such a tax could cover botox and collagen injections, laser treatments, dermabrasions, chemical peels and breast surgery, which are currently not subject to sales tax because they are considered medical procedures, the agency said.

Another suggestion included in the report was a "latte tax" similar to the recent 10-cent tax on coffee drinks proposed and rejected in Seattle. The agency said such a tax could bring in $12 million annually in New York, with an assumption that New Yorkers consume about half as many coffee drinks as Seattle residents.

The city could also raise revenues by putting cafes in library reading rooms, an idea that could generate $1 million annually if concessions were put into 125 libraries.

Another $26.5 million could be saved if the city stopped funding transportation for private school students, and $11 million could be saved by eliminating funding for textbooks for private school students, the report said.

Other tax options included restoring the commuter tax, reinstating fares on the Staten Island ferry, and reducing the number of paid holidays for city workers, the agency said.
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City Tax Code May Get Facelift
60 new levies, including on plastic surgery

Are New Yorkers ready to pay a tummy-tuck tax?

The Independent Budget Office, the city-funded fiscal watchdog, wants lawmakers to consider a sales tax on elective cosmetic surgery to help plug next year's anticipated $2-billion deficit.
Taking a cut from all those nose jobs, chemical peels, Botox injections, liposuctions and breast implants could beautify the city's budget - raising $62 million to $83 million a year, the IBO claims.

"Plastic surgery is a very big business here in the city, an unusually large part of our local economy," said IBO director Ronnie Lowenstein. "It's hard for me to draw a distinction between having an injection and buying make-up."

The group, which released a 60-item menu of budget options yesterday, also raised the idea of levying a "Latte Tax" on $2.50-plus coffee drinks, which Lowenstein estimated will generate an extra $12 million a year. Seattle, the birthplace of Starbucks, recently imposed a 10-cent-per-cup tax.

Administration officials were less than impressed by the suggestions.

"Where's the plan to buy 50,000 lottery tickets?" asked Bloomberg spokesman Jordan Barowitz.

Some other IBO budget options include:

Charging a $1 video rental fee at city libraries, which could raise $6 million a year.

Assessing a $250-per-day fee for TV and movie permits, which could bring as much as $5 million.

Increase the municipal work week from 35 to 40 hours, which would save as much as $240 million but likely face major opposition from unions.

Create $75-per-year on-street parking permits for congested neighborhoods, which could raise $2 million to $6 million.

The report came out on the same day as State Comptroller Alan Hevesi predicted the city wouldn't have much trouble balancing its budget for the fiscal year beginning July 1.

Hevesi said the two biggest risks the Bloomberg administration faces are a possible loss in a lawsuit over $500 million in state debt relief and $700 million in additional aid the mayor predicts he will get from the state.

Fast, Elegant Cash

New money the cash-strapped city could raise, under suggestions by the Independent Budget Office

Money Raised

(in millions per year*)

BO-TAX

Impose sales tax on nonessential cosmetic surgery. $62-$83

LATTE TAX

Ten-cent surcharge on high-end coffee drinks. $12

PAY-AS-YOU-THROW

Residents would pay for their trash by the pound. $263

EMPTY-LOT TAX

Assess vacant property at same rate as occupied. $66.6

NO FREE BOOKS

Cease public funding of private-school textbooks. $11

* estimated

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