New Jersey

As ABMP reported, effective Sunday, October 1, 2006, massage, bodywork, and somatic services will be subject to 7% sales tax in New Jersey unless the client has a prescription from a doctor. I recommend that you read this bulletin carefully, then follow up with a trip to the website mentioned to begin the process. If you are employed by someone else, your employer is responsible for collecting the tax. However, if you are self-employed, an independent contractor, or employ others to perform massage/bodywork, you need to take action now. If a client seeks massage for a medical condition, ask him/her to contact their doctor and request a prescription be faxed or mailed to you. A sample script was provided in the last update and can be found at www.abmp.com. Step #1 APPLYING FOR AUTHORITY TO COLLECT SALES TAX – Two forms Form #1: You need to act now to obtain a Certificate of Authority to collect sales tax. You are required to apply at least 15 days before you start collecting the sales tax, which for many of you will be Monday, October 2. You need to apply by Sunday, September 17. You may apply on-line at https://www.state.nj.us/treasury/revenue/dcr/filing/leadpg.htm and click on Service Option 2: Register for Tax and Employer Purposes and follow the instructions. If applying by mail, first obtain the forms you will need at: http://www.state.nj.us/treasury/revenue/taxreg.htm. You will need to supply assorted industrial codes. If you consider your practice to be health care:
  • Your New Jersey Business Code is 2738 (Professional Medical Services, Health Care), your Standard Industrial Code is 8049 (Offices and Clinics of Health Practitioners, Not Elsewhere Classified), and your NAICS code is 621399 (Offices of All Other Miscellaneous Health Practitioners).
If you do not consider your practice to be health care:
  • Your New Jersey Business Code is 2700 (Miscellaneous Service), your Standard Industrial Code is 7299 (Miscellaneous Personal Services, Not Elsewhere Classified), and your NAICS code is 812990 (All Other Personal Services).
Form #2: http://www.state.nj.us/treasury/revenue/taxreg.htm If you have never registered your business with the state You will need to complete form NJ-REG. Click on "forms and instructions" in the first paragraph of the above web page. At the second form listed, NJ-REG with instructions, click on "1.27 MB." Fill out pages 17-19 as instructed. If you have already registered your business with the state You have a Federal Employer Identification Number and you now need to submit form REG-C-L. Click on "forms and instructions" in the first paragraph of the above web page. At the third form listed, REG-C-L, click on 347K to obtain the form. Under item F, "List any new state tax", put "massage, bodywork or somatic services," effective date "10/1/06." Step #2 PAYING SALES TAX The state requires sales tax to be paid electronically, either on-line or by phone. Go to: http://www.state.nj.us/treasury/taxation/index.html?publsut.htm~mainFrame. Click on and print: "EZ File Wksht," "EZ File Instr," and "S&U-7." Follow the instructions for filing. Division of Taxation Questions should be directed to the Division of Taxation Customer Service Center at 1-866-698-9065, Monday through Friday, 8:30 am to 4:30 pm.
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