Six out of 10 indoor tanning businesses say the U.S. Federal 10 percent tax on tanning services has hurt business more than they expected, according to the results of a SmartTan.com poll conducted in the past two weeks.
According to the poll, 60 percent say the tax hurt them more than they expected in the five months since it took effect July 1. On the flip-side, about one-quarter of salons (24 percent) said the tax hurt them less than they expected. Just less than one-in-six (15 percent) said the tax has not hurt their business.
“The 10 percent federal tax on tanning is hurting small businesses — it still remains a bad tax put in place the wrong way for the wrong reasons,” Smart Tan Vice President Joseph Levy said. “It will be interesting to see if it remains a part of whatever health care reform survives in the next few years.”