Tanning Beds: So Very Taxing

Two weeks ago, I was reading on USA Today about the new tax on tanning beds that goes into effect July 1. It was a tiny part of the Health Care Reform Bill that has caught some attention from business and tanners alike. The new tax is estimated to collect over $2.7 billion in the next decade by imposing a 10 percent tax.

Bo-Tax to Tanning Tax

Interestingly, an earlier version of the Health Care Reform Billl included a 5% tax on cosmetic surgery that was dubbed ‘Bo-tax’. A proposal by the American Academy of Dermatology to several senators to switch the tax on tanning salon services was given as a win-win scenario. One immediate benefit would be to raise some revenue for the Health Care Reform Billl. Some also see this as an opportunity to deter people from using tanning salons, much like the cigarette tax has swayed some to reduce their habits. It’s been reported that indoor tanning can increase melanoma.

Who is Impacted?

The main question on many people’s mind with this new tax is, how will this effect me? Each day an average of approximately 1 million Americans visit their tanning salons can expect to pay more for their tanning services. For some businesses this can affect their bottom line quite a bit. Having this tax is happening the worst time as many customers are already watching their wallets.

For others, though, it’s simply an item on their budget they’re going to have to adjust.  How do you feel about the new tax? Will it change your indoor tanning habits?

Elle Martinez

Elle helps families at Couple Money achieve financial freedom by sharing tips for reducing debt, increase income, and building net worth. Learn how to live on one income and have fun with the second.

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