New Tax Brings on More Cost for Golden Glow

By: Vanessa Araiza Email
By: Vanessa Araiza Email

Julie George began her business with one tanning bed, building her company into a 21 store enterprise.

She says a new tax based around her business is putting her at a disadvantage.

She said she feels, "Somewhat violated; this industry is owned by about 70 percent women, [our] customers [are] about 70 percent women and some of our customers have said this is discriminatory."

Beginning July 1st, a 10-percent tax is being passed down to customers at tanning salons.

The controversial tax is in part of the $940 billion healthcare bill.

Obama administrators are hoping it will bring in almost $3 billion dollars over the next 10 years.

However, some tanners say it's unfair.

"The president promised not to raise our income tax and to me this is just a sneaky way of sneaking in a tax and keep[ing] his promise too," says Kristi.

Late last year, there was talk in Congress about a "botax", which would have imposed a five percent tax on cosmetic procedures.

However, that was taken out of the bill, and another tax added, one that taxes services provided by tanning salons.

George says they're trying to compensate their customers for the tax.

"What we have done to offset the tan tax for our customers is we have given them actually a $5 dollar coupon each month that they can get from our Website.” George says.

In the past three months, Son Nyguen, has increased his profit because of tanning beds.

However, that added cash flow could soon dry up. "It's going to be bad, lose 10 percent and then lose another 10," he said.

"What scares me as a business owner is if they tax this, what next small industry are they going to tax," George concluded.

News 4 spoke with a dermatologist Thursday.

They said they are not for bringing another tax on people.

However, they said there is a growing problem with cancer, especially melanoma, a popular cancer found in a lot of young girls.

Rather than bringing on a tax, they would like to see more restrictions on minors and advertising.

The American Academy of Dermatology applauded the new tax, because of the associated risks that follow indoor tanning.

It’s estimated the United States spends $1.8 billion dollars treating skin cancers.


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