Tan now or pay later; 10% excise tax imposed on indoor tanning services beginning July 1, 2010
For whatever reason, the government has targeted tanning as a source of revenue for health care.
New Law. The 2010 Health Care Act imposes a new tax on any indoor tanning service, whether paid for by insurance or otherwise. The tax, imposed on tanning service recipients in the first instance (see below), is equal to 10% of the amount paid for the services, whether or not the amount will be paid by insurance.
For purposes of the tax, the Act defines "indoor tanning service" as a service that uses any electronic product that's designed to incorporate one or more ultraviolet lamps, and that's intended for the irradiation of an individual by ultraviolet radiation, with wavelengths in air between 200 and 400 nanometers, to induce skin tanning.
The tax imposed is paid by the individual on whom the service is performed, although the service provider is secondarily liable (see below).
Every person receiving a payment for tanning services on which the tax is imposed has to collect the amount of the tax from the individual on whom the service is performed, and has to remit the tax quarterly to IRS at the time and in such manner as IRS will provide.
If the tax imposed on indoor tanning services is not paid at the time payments for the tanning services are made, then to the extent that the tax is not collected, the tax has to be paid by the person performing the service.