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A2 tanning salons prepare for effects of increase in tax

BY NATALIE BERKUS
Daily Staff Reporter
Published April 1, 2010

Amidst heated debate surrounding health care reform, health concerns about indoor tanning have pushed legislators to disincentivize the practice for consumers nationwide — and students and Ann Arbor tanning salons are bracing for the effects of the 10-percent tax increase.

The increase in the tanning tax, which was passed as part of the recent health care bill and will take effect in July, reflects an effort spearheaded by legislators to discourage people from using indoor tanning booths in light of growing concerns that they cause significant health problems.

Marianne Udow-Phillips, director of the University’s Center for Healthcare Research & Transformation, said that though tanning salons are concerned about the tax, she believes it will only have a minimal effect on their businesses.

“I just can’t imagine that a 10-percent tax will make a difference in terms of the business,” Udow-Phillips said.

Udow-Phillips added that the tanning industry was likely targeted for the tax because its lobbying forces are not as aggressive as those in the cosmetics industry that back procedures like Botox or plastic surgery.

“I think (the government) had a broader idea of taxing cosmetic services previously, and frankly the rest of the cosmetic industry was better organized and got most of it out of the bill,” Udow-Phillips said. “The tanning industry was not as well organized and didn’t have as good of lobbyists.”

Though Udow-Phillips said the tax won’t affect tanning salons, University students and salon employees are concerned about the tax.

School of Art & Design freshman Jackie San Fillipo said that even with the 10-percent tax increase, she would not stop getting her bi-monthly tans.

“My tans are usually around $10 so I wouldn’t stop going from a one dollar increase,” San Fillipo said. “I think that people will still go, because there are still really expensive sprays and beds and I still see people going all the time.”

LSA freshman Emily Abrash said that, if implemented, the tanning tax will discourage her from going to Campus Tan on Church Street — the tanning salon she frequented this past winter.

“I know (using tanning booths) is bad for you, but I still go,” Abrash said. “But if they’re raising taxes on it, that means that it’s so bad for you that you should probably stop going.”

According to the National Cancer Institute, women who use tanning beds more than once a month are 55 percent more likely to develop malignant melanomas — the most dangerous form of skin cancer.

Katie Johnson, manager of Tanfastic, which has salons on Washtenaw and S. Main Street, said her business will be affected by the tax because customers will now have to pay more to get their bronze glow.

“Clients are going to have to pay 10 percent more than they already pay,” Johnson said. “Tanning is a luxury, so any disposable income that people want to spend is (being spent) here, so of course (the tax) is going to affect business.”

Some businesses have already opted to take a different route to counteract the financial strain that tanning consumers will endure as a result of the tax increase.

“We’re already planning on lowering our cost (to) where it won’t affect our customers,” said Kelly Keeton, owner of Big House Tan on South University Avenue.

Keeton, who opened her tanning salon in five separate locations, said the small businesses in the tanning industry will take a major hit with the institution of the tax increase.

“The tax is targeting small business, and the majority of salon owners are women,” Keeton said. “It’s like they’re picking on the small business and making things hard especially in this economy.”

But Udow-Phillips has a different take on the issue.

“I don’t think it’s hurting small businesses — first of all, it’s not going make a big difference in terms of actual business,” Udow-Phillips said. “I think people will go regardless.