It never received a vote in the Senate Finance Committee. A June House version attracted a large bipartisan cosponsors: Republicans and three Democrats. A subsequent February House version attracted a still-sizable 78 bipartisan cosponsors: 76 Republicans and two Democrats. Yet neither version received a vote in the House Ways and Means Committee, then Republican-controlled.
It does not appear to have yet been introduced in the House during the current Congress. After Republicans gained control of both chambers of Congress in , an Obamacare repeal bill passed both chambers and would have repealed the tanning tax, but the bill was vetoed by President Obama, which the House was unable to override.
If the only excise tax you need to report is for indoor tanning services:. If any due date for filing a return falls on a Saturday, Sunday, or legal holiday, you may file the return on the next business day.
You can apply for and receive an EIN online. Indoor tanning services providers may file Form electronically , or on paper. The 10 percent tax on indoor tanning services must be paid quarterly with Form Indoor tanning services providers may also pay the tax via the free, secure Electronic Federal Tax Payment System.
The provider multiplies the amount paid for the voucher by 0. The person who purchased the voucher is the taxpayer for purposes of the indoor tanning excise tax, and the provider the salon in the example above is the collector. Because payments for indoor tanning services are subject to tax regardless of actual usage, the tax must be collected and paid over to the IRS even if the voucher is never redeemed for actual indoor tanning services.
For more information about the indoor tanning tax, you may call IRS toll-free at from 8 a. Eastern Time. More In File. Amounts paid for tanning services are subject to a 10 percent excise tax under the Affordable Care Act What is the indoor tanning services excise tax?
What is taxable indoor tanning service? What are the requirements for keeping records for indoor tanning services? What is phototherapy service? Is phototherapy service exempt from the indoor tanning services tax? What is a qualified physical fitness facility? Are membership fees taxable when paid to a "qualified physical fitness facility" that provides access to indoor tanning services? Do indoor tanning services include spray tans or topical creams and lotions purchased at tanning salons?
Who must collect the tax, file Form and pay the tax? Who must pay the indoor tanning services tax? Who must report the tax to the government?
If the tax is not collected from the person paying for the service, or for an undesignated payment from the person redeeming the gift card, then who is liable for the tax?
If a customer redeems a gift card but does not use it for indoor tanning services, is the indoor tanning tax applicable? If a customer purchases a gift card for indoor tanning services, pays the tax and does not use the card, is the purchaser entitled to a refund of tax?
Shortly beforehand, tanning industry leaders warned that the revenue estimates for the tanning tax were too high, because the gyms that would be excluded from the tax had significantly higher earnings than the typical tanning salon. The indoor tanning services excise tax represents a very small portion of federal revenues, and pays for less than 0. Yet, its lower-than-expected revenues are a reminder that taxing something usually leads to less of it, and that narrowly targeted taxes are often imprudent and distortionary.
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