NEWS: The Tanning Tax Expected to Impact the Industry
Last Updated (Wednesday, 31 March 2010 09:08)
The Obama Administration's new health care bill will require tanning salons to add a 10% tax on their clients' services. The initiative is expected to generate a $2.7 billion over 10 years. The 10% tanning tax has replaced the 5% tax on cosmetic surgery that was originally included in the bill. Tanning salons and tanning customers alike don't seem too pleased with the new tax, which will help fund the $940 billion health care overhaul.
The tanning tax will go into effect July 1st and will apply to electronic products designed for tanning that use one or more ultraviolet lamps with wavelengths between 200 and 400 nanometers. Other sunless tanning services such as spray tans and tanning lotions are not included in the tax.
"It's terrible," said Jan Meshon, owner of City Sun Tanning in New York City. "You know how they say that passing a bill is a bit like making sausage? Well this was the weirdest, ugliest piece of sausage to get stuffed into the bill." Meshon expects the tax to hurt his business.
"We'll do everything to keep our customers, but they are very upset by this," he said. "When they first hear about the tax, their reaction is, 'What? How did that get in there? Why are they attacking me?'" (FROM CNN MONEY)
Josephy Levy, Vice President of the International Smart Tan Network, believes that the new tax will end up forcing the closing of tanning salons and a big loss in jobs will follow. The Indoor Tanning Association started a website where tanning salon owners and customers can voice their opinion to their state reps and senators (www.stopthetantax.com.)
Much of the tanning industry are upset about the switch from the cosmetic surgery tax to the tanning tax since the cosmetic tax would have generated more money and would impact wealthier Americans who would be more able to handle higher taxes and prices.
Read more on this subject HERE.
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