Indoor Tanning Tax >>> Effective 7-1-2010 <<<

As part of the Patient Protection and Affordable Care Act of 2010 (PPA) congress passed a 10% excise tax on indoor tanning services effective on July 1, 2010.

This is a 10% tax that is added to the cost of the tanning service, collected by the business and remitted to the government quarterly on form 720 “Quarterly Federal Excise Tax Return”

No indoor tanning businesses currently have a requirement to file this IRS form 720. So this will be an additional burden and filing requirement of the small business owner that they have never had before.  Just what the business owner needs, another tax to collect from its customers and another for tax forms to file every year.  Heaven forbid the business owner file it late, penalties and interest are on their way.

Effects:  All users of indoor tanning facilities and businesses.

Costs and burden:
Consumer costs: 10% of all tanning services 
Business costs: cost of establishing a system to collect, track, report and remit this trust fund tax.

Example:
If an average small business grosses $200,000 on indoor tanning services must now collect 10% ($20,000) from their customers and remit it to the US Treasury.
Estimated cost to set up the system, recordkeeping, and remittance is about $50 per month or $600 per year.

This additional $600 is a business cost paid directly out of the business profits (if any) on an already economically difficult business environment.

Read the Full text of the Treasury Decision 9486, 6-14-2010

Click Here>> IRC Sec(s) 5000B Indoor Tanning Tax

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