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IRS issues final rule on tanning tax


 

The Internal Revenue Service has issued the final regulation on collecting a 10% tax on tanning salon receipts as called for by the Affordable Care Act.

The tax first went into effect in July 2010 under temporary regulations while the IRS collected comments on the proposal. Updated regulations were issued and opened for comments in 2012.

Tanning salons have widely complained about the tax, which they said would help drive many of them out of business.

It’s not clear whether that has come to pass, Dr. Jack Resneck Jr., a member of the American Academy of Dermatology board of directors, said in a statement.

"It’s too early to assess the full impact of the tanning tax, but we know it has provided countless opportunities to raise awareness about the dangers of indoor tanning," said Dr. Resneck, vice-chair of clinical dermatology at the University of California, San Francisco.

In 2011, the Indoor Tanning Association was able to rally Republicans in the House and Senate to sponsor a bill to repeal the tax. The campaign did not gain much ground.

"Efforts by the tanning industry to fight this important public health measure have only furthered our efforts to communicate through the media about the overwhelming evidence on the risks of indoor UV tanning," Dr. Resneck said.

"Combined with the FDA’s recent proposal to reclassify tanning beds, as well as efforts in numerous states to restrict minors’ access to indoor tanning, I am optimistic that we are witnessing a real turning point in public awareness and sentiment," he added.

The final rule exempts "qualified physical fitness facilities" that offer tanning services from collecting the tax, as was proposed in 2010.

Phototherapy performed by, and on the premises of, a licensed medical professional also is exempted.

aault@frontlinemedcom.com On Twitter @aliciaault

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