The tanning tax is a 10% federal excise tax that the U.S. government mandates tanning service providers to collect from clients on indoor tanning services. Implemented in 2010, this tax functions similarly to a sales tax, as outlined by the IRS.
What is a Taxable Tanning Service?
A taxable indoor tanning service refers to any service that uses an electronic device equipped with one or more ultraviolet lamps designed to emit ultraviolet radiation, with wavelengths ranging from 200 to 400 nanometers in the air, to induce skin tanning in an individual.
Why is there a tax on tanning?
Prolonged exposure to ultraviolet (UV) radiation from tanning beds and sunlamps can lead to skin cancer and other health issues.
In 2010, the U.S. government introduced the tanning tax to generate revenue for healthcare programs and the federal government.
The tax aims to discourage the use of indoor tanning services, particularly among young people, who are at a higher risk of developing skin cancer due to their increased sensitivity to UV radiation.
Who Pays the Tanning Tax?
Consumers who use indoor tanning services are required to pay the tax at the time of service, with the amount directly included in their payment receipt. This tax does not need to be reported on their income tax returns.
Meanwhile, tanning salons and other providers of indoor tanning services must register with the IRS and are responsible for paying the federal excise tax on a quarterly basis.
Who is exempt from paying the Tanning Tax?
Tanning services provided as part of a gym membership at a "qualified physical fitness facility" are exempt from the tanning tax
Spray tanning services, as well as the purchase of topical creams and lotions, are not subject to the tanning tax.
Photo therapy treatments administered on-site by a licensed medical practitioner are also exempt from the tanning tax.
How to Pay Tanning Tax?
Tanning service providers are required to pay the tanning tax every quarter using Form 720. This can be done either manually or online, with the online method offering a faster and smoother filing experience.
Manual Filing:
Fill out the top section of Form 720, which includes basic details such as your name and address.
On page 2, under Part 2, enter the tax amount to be paid in IRS number 140.
Sign the form and mail it along with payment details to the appropriate IRS mailing address.
Online Filing:
Use any IRS-approved online portal to file.
Enter your business details, tax details under tanning service section
Complete the payment, and submit the filing.
Choose our IRS approved online portal Simple720 to do Tanning tax filing online.
WRAP:
After reading this blog, you will have a clear understanding of what the tanning tax is, why it was implemented, who is responsible for paying it, and the different methods available for filing the tanning tax.