I have a feeling my neighborhood pool will be a lot more crowded this summer now that individuals are being deterred from signing up for tanning bed memberships. For those of you who have trouble following the gazillion (and I never use that word) provisions of the new health care law, a 10% tanning tax was officially implemented yesterday to bring in $2.7 billion and help pay for the all-too-expensive Obamacare.
And while employers and customers are frustrated at the tax, they are even more frustrated at its ambiguity. In an article yesterday, The Wall Street Journal (WSJ) talks about how tanning salons will be taxed, but health clubs that offer tanning beds will not. Tanning sessions that include ultra-violet rays will be taxed, but spray tans will not. And let's not forget that there are a number of businesses, aside from specified tanning salons, that offer tanning services on the side, including dry cleaners and video stores. Yes, that came as quite a surprise to me as well, but it's true. The WSJ article highlights Jeanne Chamberlain, a video-rental store owner who will be slapped with the burdensome levy:
"Ms. Chamberlain followed a number of her peers in adding tanning services to smooth out the bumps in her Rice Lake, Wis., business. Today, she wants to offer one free tan for every three rentals. Should that freebie be taxed? Ms. Chamberlain doesn't know, and even if she did, she doesn't yet have the software in place to help with the calculations."
The Internal Revenue Service's answer to Ms. Chamberlain's question? They don't even know! According to the WSJ, an IRS spokesperson said, "Business owners should 'make the best determination they can based on their own facts and circumstances.'" Talk about confusing! I think it's only fair for the appropriate entity (whether the Obama Administration, IRS, or both) to buckle down and solidify some of these new regulations so, at the very least, business owners and consumers know what they are facing. In the meantime, get all that "natural" sunlight you can. It certainly seems to be the more economical choice.