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Tanning Tax Fitness Center Exception - August 2010 - YouTube video text script

HERE’S A TIP FROM THE I-R-S.
 
HI… I’M JODI… AND I WORK FOR THE INTERNAL REVENUE SERVICE.

STARTING JULY 1ST, 2010, BUSINESSES THAT  OFFER ULTRAVIOLET TANNING MUST CHARGE A 10 PERCENT EXCISE TAX ON THE AMOUNT CUSTOMERS PAY FOR THE TANNING SERVICES.

HOWEVER, THERE IS A LIMITED EXCEPTION FOR CERTAIN QUALIFIED PHYSICAL FITNESS FACILITIES THAT OFFER INDOOR TANNING SERVICES. 

IT WORKS LIKE THIS… THE TAX DOESN’T HAVE TO BE PAID ON MEMBERSHIP FEES TO QUALIFIED PHYSICAL FITNESS FACILITIES THAT OFFER INDOOR TANNING SERVICES AS AN INCIDENTAL SERVICE TO MEMBERS… PROVIDED THE FACILITY DOESN’T SELL TANNING SERVICES TO THE GENERAL PUBLIC.

THIS EXCEPTION DOES NOT APPLY TO A FITNESS FACILITY THAT CHARGES SEPARATELY FOR THESE SERVICES OR THAT OFFERS DIFFERENT PRICING OPTIONS TO MEMBERS BASED ON WHETHER TANNING SERVICES ARE INCLUDED.

IF THE EXCEPTION DOESN’T APPLY TO YOUR BUSINESS YOU MUST COLLECT A 10 PERCENT EXCISE TAX ON THE AMOUNT PAID FOR THE TANNING SERVICES.

AND REPORT AND PAY THE TAX QUARTERLY ON I-R-S FORM 720.

FIND OUT MORE ABOUT THE EXCISE TAX AND THE EXCEPTION FOR QUALIFIED PHYSICAL FITNESS FACILITIES ON I-R-S-DOT-GOV.

Page Last Reviewed or Updated: 11-Jun-2014