In the five years since the Tan Tax was slipped into the Affordable Care Act at the eleventh hour, indoor tanning business have been forced to outperform the average American company. To cover the ten percent excise tax on tanning services and remain profitable, they’ve had to be better, smarter, and more resilient.
Many didn’t make it — the burden was simply too much. Thousands of salons have closed, putting tens of thousands of workers out of jobs. The others have been left to choose between swallowing a ten percent dent in revenue or raising prices, while trying to compete with gyms, apartments and other businesses offering tanning without having to pay the tax. These tanning businesses have persevered by utilizing keen business sense and providing superior customer experiences, but that’s not always enough. Salons have fought back against difficult odds, but this onerous tax continues to take a toll on their businesses.
Now, the future is looking brighter: A bill to repeal the federal excise tax on indoor tanning services was introduced in the U.S. Congress last month. This giant step forward comes after years of tireless advocacy from the American Suntanning Association.
Click here to read the entire article in the latest issue of Smart Tan Magazine online.