New Tanning Tax Leaves Some Feeling Burned

By Lindsay Watts

COLORADO SPRINGS-The federal health care bill has tanning salons feeling the heat. Starting in July there will be an extra 10% tax to get an indoor tan, and salons across the country are worried about the aftermath.

“Overall for my industry, this is a terrible thing,” says Ric Rooney, owner of Sun Sport Atlantis. “The estimate is you’ll see over 1,000 tanning salons closing in the next 12 months.”

His salon offers services in addition to tanning, and he says that will let him absorb the 10% tax instead of charging it to customers. But he says many smaller salons won’t be able to shoulder those big costs.

“They really have very few options with this tax, but to pass it on and hope their customers stay with them,” says Rooney, a 20-year veteran of the tanning industry.

Marianne McCaig, a customer at Sun Sport, worries that even if prices stay the same, the extra tax could affect services.

“Because if they’re absorbing it,then they might cut small things out, ortheir lotion prices might go up,” says McCaig. “If they have to pay more, they might give us less.”

The tax is expected to bring in $2.7 billionin the next decade, but those in the tanning industry say thatamount is wayoff the mark,especially if some salons are forced to close their doors.

The health dangers of indoor tanning have garnered some support for the tax. The National Cancer Institute says those who tan once a month are 55% more likely to develop malignant melanoma, the most deadly form of skin cancer. With about 30 million Americans hitting the tanning bed each year, we’ll see if the extra tax ends up burning away business.