Excise Tax on Tanning Services Starts July 1

A 10% excise tax on tanning services starts July 1. The IRS today released regulations about the tax, which will be assessed in a similar fashion to a sales tax. The provider of the tanning service will have to submit the excise tax to the IRS quarterly, which means an increased cost to the consumer.

The tax only applies to ultraviolet tanning services; "spray-on" tanning and tanning lotions are not subject to the excise tax. The regulations provide exceptions for licensed medical professionals who use ultraviolet lights as part of medical treatment, and for fitness centers that provide tanning as an incidental cost of membership.

The affect on your pocketbook will be to add 10% to your current tanning cost. So if a tanning fee is $20, you'll be paying an additional $2 in excise tax starting July 1.

This excise tax is part of the health care reform bill that Congress passed in the spring. Officials estimate that the tax could raise $2.7 billion of revenue over the next 10 years.