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FREQUENTLY ASKED QUESTIONS REGARDING COSMETIC THERAPY SALES TAXThe State Medical Board's authority with respect to the practice of cosmetic therapy encompasses licensing and regulatory matters. The imposition of a state sales tax on cosmetic therapy services falls beyond that scope, and is instead more appropriately a topic for consideration by the Ohio General Assembly. In House Bill 95, the biennial budget bill, the General Assembly elected to impose such a tax on cosmetic therapy services other than those being provided pursuant to a physician's order. With respect to the new sales tax, the Medical Board views its primary function as one of providing sufficient information to assist licensees in meeting their responsibilities under the law. The Ohio Department of Taxation will ultimately be responsible for implementing the new sales tax and enforcing compliance with the new requirements, although the Medical Board will continue to liaison with the Department of Taxation on this evolving issue. The Medical Board will continue to make up-to-date information available on this website, and encourages licensees to contact the Medical Board, CTAC or the Ohio Department of Taxation with any questions they may have. The State of Ohio has also created an information site for the sales tax issue. Click here for details. Why are cosmetic therapists being taxed? When does the sales tax on cosmetic therapy services take effect? What is considered a “taxable event” covered by the sales tax? As a cosmetic therapist, what are my responsibilities under the new law? Will insurance companies reimburse providers for the amount of the sales tax? Will a cosmetic therapist now be required to obtain a vendor’s license? What is the statutory requirement for the posting of a vendor’s license? Are there any exemptions for cosmetic therapy services being taxed? Who is encompassed within the definition of “physician”? Do cosmetic therapy services provided at clinics associated with cosmetic therapy schools qualify as "taxable events" under the new law? What records should be kept to prove compliance with the sales tax? How often must cosmetic therapists file taxes to be in compliance with the sales tax law? What are the penalties for failing to comply with the new sales tax?
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