Blog Details

If you run an indoor tanning business, you have probably heard the same question more than once. Is this tax still around or did it finally go away. The confusion did not come from nowhere. Over the years, the rules around tanning have shifted, conversations have started, and expectations have built up in the industry.

Many providers are unsure whether they still need to charge the 10% tax or file Form 720 every quarter. Some believe the tax ended. Others think it changed. A few are not sure what the latest update even is.

This blog clears that confusion in one place. You will understand what the tax actually covers, who must file, what counts as taxable, and most importantly, the real status of this tax today. If you have ever wondered whether something quietly changed behind the scenes, this is where you get the answer.

The indoor tanning excise tax is a 10 percent federal tax that applies to indoor tanning services. It was introduced in 2010 as part of federal healthcare legislation. Any business that provides indoor UV tanning must collect this tax from customers at the time of the service.

The tax is added to the final bill. After collecting it, the business is responsible for reporting and paying it to the IRS through Form 720, which is the Quarterly Federal Excise Tax Return. This tax applies only to UV tanning sessions that use equipment such as tanning beds or tanning booths.

Yes, there was. In fact, the idea of ending the indoor tanning tax created most of the confusion you see today. For a few years, lawmakers openly discussed removing it. Bills were introduced in Congress, industry groups supported the move, and many salon owners genuinely believed the tax would be gone soon. It was not just a rumor. It was a real possibility that gained attention.

This is why you may have heard salon owners say the tax was going to end or why some customers thought it had already been removed. The conversations around repeal were strong enough to make people expect a final change. For a moment, it looked like the 10 percent tax would actually be taken off the table.

The repeal did not fail because people lost interest. It failed because it never reached the point where Congress could approve it. Several repeal bills were introduced, but none of them made it through the full legislative process. Some stalled before committee review. Some were dropped when larger tax reform packages were being negotiated. A few were discussed again during budget talks, but they were not included in the final versions of those bills.

Another reason the repeal did not move forward is the revenue factor. The indoor tanning tax brings in steady federal revenue every year. Removing it would require replacing that revenue somewhere else, which made lawmakers more cautious about passing the repeal.

So even though the idea gained attention, the votes, timing, and budget alignment never came together. The proposals were real, the discussions were real, but the legal approval never happened. That is why the tax remained active while the repeal quietly faded out of the spotlight.

Here is where things stand today, and it is simpler than most people think.

• The indoor tanning tax is still fully active. Nothing has changed behind the scenes.

• If you offer UV tanning services, you still need to add the 10 percent tax to every session.

• You are responsible for collecting it from your customers and keeping it aside for your quarterly return.

• Form 720 remains the way to report and pay this tax, so the filing routine stays the same.

• The IRS continues to expect accurate records and on-time filings, which means your compliance process should continue without any breaks.
  
  

Any business that offers UV-based indoor tanning services is required to file IRS Form 720 and collect the 10% federal excise tax, even if tanning is only a small portion of what they provide. You must file if your business allows customers to use UV tanning beds or booths, regardless of whether tanning is sold as a standalone service or included in a membership.

Businesses That Must File

• Tanning salons

• Gyms and fitness centers that provide UV tanning as an add-on

• Spas, salons, and beauty centers with tanning beds

• Wellness centers or clubs offering UV tanning access

If customers can walk in or use a UV tanning bed under your business, you are responsible for charging the 10% tax and filing Form 720 every quarter.

Services that are taxable

You must charge and report the tax on:

• UV tanning sessions using tanning beds or booths

• Memberships or prepaid packages that include UV tanning

• Any service where payment includes access to UV tanning equipment

Services that are not taxable

The tanning tax does not apply to:

• Spray tanning or airbrush tanning

• Topical tanning lotions, creams, or self-tanning products

• Medically supervised phototherapy treatments

• Tanning provided inside qualified fitness facilities where tanning is not a primary business activity and is not separately charged

Here is the clean, accurate, and precise information for Form 720 filing.
The deadlines for the tanning tax have not changed.

Quarterly Filing Schedule for Form 720

Final Thoughts

The indoor tanning tax has had a long journey, filled with expectations, discussions, and plans that almost changed its course. Many thought it would disappear, and for a moment, it truly seemed possible. Yet the law never shifted. The repeal stayed on paper, and the tax stayed in place.

Today, the reality is simple. If your business offers UV tanning, the 10% tax is still part of your routine. The filings, the records, the quarterly Form 720 process, all of it continues as usual. Think of it as one of those rules that survived every debate and still shows up on the checklist.

Understanding that helps you stay compliant without second guessing. The confusion ends here, and the clarity begins.