10% Tax on Tanning Effective July 1st
As of July 1, 2010 customers will be paying more for tanning services. As part of the health care reform bill passed in March of this year, businesses offering indoor tanning services will collect a 10% federal tax from individuals paying for the service. Business owners will be responsible for collecting, reporting, and remitting the full amount of tax with a timely filed IRS Form 720.
This new tax is one of the revenue raising provisions in the Health Care Reform Act. It is estimated that the new tanning tax will raise $2.7 billion over the next 10 years. Despite predictions, how this tax will impact businesses in the tanning industry remains to be seen.
While debates continue over several issues regarding this new tax, Heintzelman Accounting Services focuses on helping our clients easily adjust to the compliance rules of current legislation. We also assist small business owners in determining how they will be affected by new legislation and discuss ways to eliminate or reduce any negative impact of such tax laws.
Contact HAS for assistance in setting up a record keeping system for this new excise tax.
Recent Comments