Tanning Tax

What is the Tanning Tax?

Officially enacted on July 1st of 2010, the tanning tax was implemented as a means to collect revenue for President Obama’s health care reform bill. The tanning tax is a 10% levy on all indoor tanning services—those individuals who utilize tanning beds or any service related to indoor tanning (including spray tans) are subject to this taxation. When passed, congress claimed the tanning tax will bolster government revenue by nearly $3 billion over the next decade.

Information Regarding the Tanning Tax:

Who is Responsible for Paying the Tanning Tax?

All indoor tanning service providers are responsible for collecting the tanning tax from any client or person paying for the services provided by the tanning salon or provider. The government defines a “taxable indoor tanning service” as a service who employs any electronic product designed to incorporate one or multiple ultraviolet lamps intended for the irradiation of a customer via ultraviolet radiation; the beds or providers must have wavelengths in air between 200 and 400 nanometers.

How is the Tanning Tax Reported?

The individual receiving payment for providing tanning services must report the tanning tax on Form 720, the Quarterly Federal Excise Tax Return. This form is filed quarterly. Because an IRS form is required to file the tanning tax, all indoor tanning services are required to obtain employment identification numbers. Moreover, as with any other tax return, all tanning service providers must maintain sufficient records and books demonstrating the amount of revenue obtained from supplying indoor tanning services.

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