Jersey Shore is an MTv reality show about North Jersey young adults of Italian decent and their antics while hanging out on the Jersey Shore.  On a recent episode Nicole “Snooki” Polizzi became America’s newest political commentator when she said she was not going to use a tanning bed anymore because “Obama put a 10 percent tax on tanning”.  She further stated that Senator McCain would never tax tanning.  Well Snooki, Senator McCain is not President.  Much to your dismay, President Obama and Congress passed a sweeping health care bill that is to be funded by a ten percent excise tax on tanning services.  Recently, the IRS has issued regulations outlining procedures on the administration of the excise tax.

The IRS has issued regulations [TD 9486] outlining the administration of a 10% excise tax on indoor tanning services that goes into effect on July 1. In general, providers of indoor tanning services will collect the tax at the time the purchaser pays for the tanning services. The provider then pays over these amounts to the government, quarterly, along with IRS Form 720, Quarterly Federal Excise Tax Return.

One question that has not been answered is whether spray tanning is considered tanning services.  The IRS has not issued their position on the definition of tanning services so it may well include all indoor tanning services.  Obviously this excise tax will increase the cost of tanning indoors substantially.  Not only will the ten percent excise tax be included in the tanning services, but the significant cost of compliance will also be included.

The Stevenson Law Group represents clients in audits of excise, sales and use taxation before States and Federal taxing authorities.  The Stevenson Law Group is prepared to defend spray tanning services as an exemption from the excise tax.  Our professionals are able to get an advanced ruling on the issue in order to ensure your tanning business is in proper compliance with this new tax burden.  Please contact Kristen Gaske at 619-330-9409 or info@stevensonlawgroup.com for an appointment or for more information.