To help fund the massive healthcare legislation passed earlier this year, our government has been forced to come up with some pretty unusual measures. One of the most controversial has been the 10% tax on most indoor tanning. This tanning tax is expected to raise $2.7 billion over the next 10 years.
The 10% excise tax on indoor tanning services will go into effect on July 1, 2010. The IRS has recently issued regulations outlining how it will be administered. The highlights are below:
How Will The Tanning Tax Be Collected?
In general, providers of indoor tanning services will collect the tax at the time the purchaser pays for the tanning services.
How Will The Tanning Tax Be Submitted To The IRS?
The provider then pays over these amounts to the government, quarterly, along with IRS Form 720, Quarterly Federal Excise Tax Return.
Are There Any Exemptions To This Excise Tax?
The tax does not apply to phototherapy services performed by a licensed medical professional on his or her premises. The regulations also provide an exception for certain physical fitness facilities that offer tanning as an incidental service to members without a separately identifiable fee.
As seen in the image above, it’s not only the Indoor Tanning Association that has a problem with this; even Senator John McCain is opposed and has gone as far as to send a Tweet to Jersey Shore star Snookie about his displeasure.
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