July 09--The new 10 percent tax on indoor tanning has salon operators worried that the added cost will result in sticker shock for customers who turn to tanning beds once summer ends.
"How am I going to survive as a small-business owner?" said Cyndi Colley, owner of No Tan Lines, near Ohio State's campus.
"I already eliminated one person. This won't help me create any jobs," said Colley, who's been in business for three and a half years.
Her tanning salon at 1589 N. High St. is one of about 20,000 affected in the U.S.
The tax, in effect since July1, was included as part of the federal health-care reform and was designed to discourage a cosmetic activity that's been linked to skin cancer.
The tan tax replaced another funding scheme known as the "Botax," which would have put a 5percent tax on Botox injections and some other elective cosmetic procedures.
Now, tanning salon customers face about 17 percent in taxes, with the new tax and established sales tax. At No Tan Lines, that means consumers pay an additional $3.50 to $7 depending on the package.
Farah Gerber, 22, a weekly tanner at No Tan Lines, sees both pros and cons with the new tan tax.
"It makes me mad because I set aside a certain amount of money to tan and feel like I'm being punished for spending my money how I want," she said.
Gerber will be cutting back on how much she tans -- now going only twice a month.
"It's saving people from themselves, because when it's more expensive less people will do it and there will be less skin damage," Gerber said.
Jayson Denman, manager at Bronze FX Tanning, 6327 Sawmill Rd. in Dublin, hasn't seen a major effect on business yet, but he said it's hard to tell, since summer is the offseason for indoor tanning.
"At first, we were concerned it would really affect the industry, but so far it hasn't been too hard of a hit," Denman said. "I'm not sure how much it'll help the health reform."
Efforts are under way to reverse course on the tanning tax. A website, http://repealtantax.com, was launched to draw Congress' attention to how some consumers and small businesses feel about the issue.
Bronze FX Tanning has been involved with the repeal efforts by informing its clients and sending letters to legislatures.
"Most (clients) are upset and don't understand why there's a tanning tax," Denman said.
The government anticipates collecting $2.7billion over 10 years from the tanning tax. An estimated $5billion would have been generated from the Botax.
hpoturalski@dispatch.com
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