With the launch of its next line of feminine cosmetics, cosmetics giant Estee Lauder will begin paying more tax on sales of its products that include facial creams, body creams and eye makeup.
Estee Lauder announced Thursday that it will begin collecting sales tax on facial cream and eye products from March 18, and facial creasions from March 19.
The move marks the first time Estee has made the sales tax payments, which it had previously declined to do, in response to a ruling by the U.S. Supreme Court in the Cosmetics Fairness Act (CFDA).
The ruling invalidated the CFDA, which required Estee to collect sales tax from cosmetic manufacturers that are sold in states where it does business.
In a statement, Estee said that it would be collecting the sales taxes for each product on a case-by-case basis and then distribute the tax to retailers and consumers.
“We have been working closely with the IRS and state governments to fully comply with the ruling, which we will fully implement,” the statement read.
However, Estée Lauder said that some states, such as Connecticut, where the company is based, may not require Estee retailers to collect the sales-tax from the company.
While the tax will only be levied on sales in states that have enacted the CFAA, Estées plan to begin collecting it in the states where Estee does business, the statement added.
According to Estee, the decision was made based on the CFDAs impact on businesses in the cosmetics industry, which has seen sales fall by more than half since the CFTA was signed into law in 2011.
Earlier this month, Estie Lauder announced that it had launched a new line of facial creasses that includes products for the face, neck, and back, including one that includes facial hair and a facial mask that includes face wash.
This new line will also include new creams for the mouth, face, nose, and ears, along with new facial cleansers.
Since its inception, Estoo Lauder has been in a long-running battle with the U