About two-thirds of tanning businesses say the federal 10 percent excise tax on UV tanning services — which took affect in July 2010 as part of the 2010 Health Care Act — has hurt their businesses more than they expected, according to a SmartTan.com poll conducted this month.
According to the poll, 65 percent of sunbed business owners say the tax has affected them more than expected. Only 19 percent say it has affected them less than expected. About one-sixth, 16 percent, say it has not affected their business.
Although many tanning businesses have bounced back this year following the 2009-10 recession, its clear that the 10 percent tax has slowed growth in the market, putting some stores out of business and keeping others from hiring more staff or improving employee benefits. Thousands of businesses have been affected.
“When I have been asked by skeptical journalists whether a 10 percent tax really affects business, I ask them if a 10 percent tax on newspapers would hurt their business,” Smart Tan Vice President Joseph Levy said. “That’s when they understand. Many newspapers today would go out of business with a 10 percent tax.”