TAX NEWS - 2010

Federal tax on tanning starts July 1

On July 1, stepping into the tanning booth is going to cost you more. The federal tax on tanning starts Thursday.

Some use it to relax, others like the sun kissed look. Tanning bed user Kelly Longanecker says, "The warming my whole body, I kind of like the feeling and love how I look when I'm tan."

Longanecker frequents the tanning bed. Now, she'll be paying more out of pocket for a trip to the salon. The tan tax is part of the national healthcare reform bill, charging anyone using a tanning bed 10 percent more.

Some local business owners are frustrated with the government. At Electrik Beach, they are holding off on charging customers the extra fee. "We're going to take the bite and will pay the tax until they understand what it is."

For smaller companies like Ocean Rays Tanning Salon, there's no option but to raise prices. Owner Sheri Vermilyea says, "We're trying to absorb some of it, but there's no way I can absorb all of it.

Vermilyea see's the tax as an attack on the industry. She says, "At times I feel like I want to knock my head against the wall. It's defeating, it's hard. We're doing everything we can to compete with bigger people." And she is hoping the tan tax doesn't turn clients away.

A note for tanners: the federal tan tax only applies to UV lights. Spray tans and tanning lotions are exempt.