Health Care Bill Levies 10% Tax on Tanning Salon Customers

Published: Thu 15 Apr 2010

Thomas Kristoffersen

The new health care reform law has many up in arms, but not for the reasons you might think. Their indignation has nothing to do with the federal deficit, the coverage mandate, or the lore about death panels. No, these folks are upset because they enjoy their bronzed glow, and now they have to pay more to get it.

A little-know provision in the health care bill levies a ten-percent tax on all Ultra-Violet tanning purchases as of July. So it's certain that the additional cost will either mean higher prices on indoor-tanning sessions or lower profits for tanning salons. Either way, the tax has tanners and the purveyors of those artificial tans pretty heated.

"Obviously, I don't like it," said Tina Tieman, a tanning-salon owner in Missouri. "I feel like they're taxing our industry when it's not a very profitable time to begin with."

Tieman cites the protracted recession and high unemployment rates as the culprits behind her salon's financial struggles. With the additional tax, she now fears that her business may not stay afloat.

Tanning Salon Customers Ticked-Off

The people who bask in the UV glow of indoor tanning beds are not much happier. The tanning tax will likely result in each session costing a few more dollars, which some might not be able to afford.

"A lot of my girls tan, most of them, and they don't have a lot of extra money," said Eydie McNeill, a UCLA sorority-house mom. "They're students, most students live on a tight budget."

The tan tax does not apply to spray tanning sessions, however, which provides seekers of swarthy skin an alternative. However, spray tanning tends to be more expensive and not as long-lasting as UV tanning.

Purpose of the Tanning Tax

According to lawmakers, the purpose of the tanning tax is to recoup losses associated with the health care bill and to raise awareness of the risks of Ultra-Violet tanning. The FDA has already issued warnings discouraging the use of indoor tanning beds because of the associated risk of skin cancer and retinal burning.

Although the tan tax is meant to be a revenue generator, experts are not sure how much money it will raise. International Smart Tan Network, a trade group, estimates the revenue at $170 million for the first year, while the Congressional Joint Committee on Taxation predicts revenue of $300 million during the same period of time.