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.
With odd changes such as this, be sure to lookout for the new 2011 tax deductions, and other changes, such as the window tax credit!
Don’t forget to visit our tax guide for tax help, and also set up an appointment for tax preparation.
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{ 6 comments… read them below or add one }
Obama is taxing everything under the sun. Which will only hurt small business and the economy. But the feds don’t care about that.
Thanks for the comment! I agree with you 100%! His attack on the “rich” is a clever way to gain the trust of the masses, but what they don’t understand is that most of the “rich” are just small business owners – who happen to do 75% of the hiring in this country!
I don’t lay all of this on Obama. This is just his addition to the many taxes already implemented by previous governments, most of them hidden in some form.
They already tax gasoline, utilities, land, cars, labor, nearly everything we buy, and very nearly the air we breath (alright, that’s an exaggeration, but it’s coming…)
Each admin comes in, adds it’s new taxes to the existing mountain, and none are ever done away with. I believe this has more to do with the anemic economy than anyone will or can admit.
Very true, this mess didn’t start with Obama – but he is making it much worse! There has been so much published showing that targeted tax decreases are much more effective than increased government spending to jump-start the economy.
I think that we need to get used to a lower standard of living as we de-leverage both as a nation and as individual households.
Khaleef–I agree with EVERYTHING you’ve written–Obama is making it worse. But W made it worse than Clinton, who made it worse than George the First, who made it worse than Reagan, who made it worse than Carter, etc, etc… We can assume Obama’s successor will do things we can only imagine in our worst nightmares.
This is reminiscent of the movie Mask–people get elected into government then once in the seat of power they morph into crazed spending machines. There are no fiscal conservatives in DC, only those who talk the talk.
Governments power comes from spending so there’s no incentive to freeze or cut it. Doing so means relinquishing power. And as much as we’d like to lay the blame for our problems squarely on the guy in the White House–whoever that might be at any given time–I suspect that many among “we the people” are perfectly comfortable with the spending orgy.
I definitely agree that each administration just makes the problem worse than the previous one. I never looked at it from the prospective of a loss of power – that is very interesting.
I also see the inconsistency of the common people when discussing spending. Most people talk about wanting a fiscally conservative government when their party isn’t in office, but once their candidate gets in they cheer every multi-billion dollar plan there is! I even see it with New Jersey – everybody called for fiscal responsibility, and now we have a Governor that is making some serious cuts and refuses to raise taxes (for now) and everybody hates him!
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