TAX NEWS - JUNE 2010

'Tan tax' puts salons on burn notice

The heat is being turned up on local tanning salons this summer by the federal government to limit indoor tanning, but some say the burn won't be that bad.

A 10 percent "tan tax" will be imposed on the total cost of all indoor tanning services that use ultraviolet lamps beginning July 1. This includes both tanning beds and booths. Lotions and spray-on tans will not be affected.

The tax is intended to help pay for the reform of the health care system and was a late addition to the bill replacing the "bo-tax," which would have levied a 5 percent tax on cosmetic surgery procedures.

Tanning prices in the area range from $10 for an individual tan to memberships costing $69.99 and packages as much as $122. After July 1 these prices would rise to $11, $76.99 and $134 respectively.

"It will definitely hurt business somewhat, but if people want to tan, they're going to tan," said Laura Harosky, manager of Hollywood Tans in Frederick .

Harosky said her loyal customer base will continue to tan despite the tax. About a year and a half ago prices on all memberships at the salon were raised $5 due to the ailing economy, but those increases didn't hurt business, she Harosky said.

Christina Glover owns Sunset Tans in the Monocacy Shopping Center and is critical of the implementation on the tax. Although she thinks many of her customers are faithful and will continue to tan, the higher cost may force some to cut back.

"This is a very unfair tax that will hurt business and targets middle-class female business owners," she said.

Harosky thinks recent studies on the negative effects of tanning will prevent people from tanning at salons more than the tax will.

"The tax isn't going to make much of a difference in making people stop tanning," Harosky said. "It's just going to hurt our business because instead of people coming here to tan, they'll spend the time in the sun."

Alissa Watts is a regular client at Sunset Tans. She said she tans before going on vacation to get a "base tan" to avoid a serious sunburn. She is aware of the studies stating the negative effects of indoor tanning, but they don't stop her from jumping into a booth, and neither will the "tan tax."

"I take them (studies) into consideration, but I'm responsible for my own choices and tan in moderation," she said. "The government is trying to monitor what people do with their lives rather than caring about their health and safety."

Glover said many of her customers come in for treatment of medical problems, such as psoriasis, acne, arthritis and depression. She questions how patients can receive treatment at a dermatologist's office for psoriasis with no tax, but if they come into her salon, they will face the 10 percent increase.

Spring and summer are usually the busiest times of the year for tanning salons, but no one is sure of how this tax will affect businesses immediately, if at all. Harosky isn't worried about losing business immediately, but rather during the fall and winter months. Glover is a little less hopeful.

"With the economy the way it is, this tax will hurt us most right now because the summer sun is available," she said.

Ruth Smith has owned and operated What a Tan on McCain Drive in Frederick for 25 years. Although it is the business's 25th anniversary, Smith said business is slow but has no explanation for it. Even with the "tan tax" looming, she has little fear about it affecting her business.

"I'm sure it will affect us some," she said. "Ten percent is a lot, but they (customers) will get used to it."