Tan Tax

The government might be charging you to tan

As of July 1, a new tax law becomes effective regarding tanning salons.  As a way to help finance the healthcare bill which Congress passed earlier this year, a 10% tax excise is to be placed on indoor tanning services.  The idea behind this new law seems to come from the notion that too much artificial tanning is harmful and may increase the likelihood of skin cancer.  Whether or not you agree with this new tax, it’s sure to displease some small business owners.

Like most tax laws, there’s a loophole in this one.  Health clubs that include tanning services as part of their membership fees are exempt.  It also doesn’t apply in instances where a licensed medical professional is performing the service.  But your typical tanning salon, likely an unincorporated small business, won’t be exempt.  Many small businesses, already struggling to keep afloat, won’t welcome the new change. 

It’s likely this new tax will be passed on to the consumer.  So maybe ditch the booth and get outside this summer.  You can still get a decent tan with a lower SPF sunscreen.

Michael Dykstra is an expert writer on time card software based in San Diego, California.  He writes extensively for an online resource that provides expert advice on purchasing and outsourcing decisions for small business owners and entrepreneurs such as time and attendance systems at Resource Nation.