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9017 - Excise Tax on Indoor Tanning Services in Lieu of Elective Cosmetic Medical Procedures

 
Implementation Status 
Statutory Text 

Summary

As substituted by section 10907 of the Manager’s Amendment. Applies a 10 percent tax to the amount paid for indoor tanning services. Provides that the tax shall be paid by the individual on whom the service is performed to the service provider and remitted by the provider quarterly to Treasury. Notes that the service provider is secondarily liable for the tax if it is not collected from the service recipient at the time that payment is made. Applies to services performed on or after July 1, 2010.

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Implementation Status

 
Summary 
Statutory Text 

Via final and temporary regulations published in the Federal Register on June 15, 2010, the IRS implemented the tax for the July 1, 2010 statutory deadline and maintains an Indoor Tanning Services Tax Center website with information regarding the tax and its administration. An IRS Q&A
provides further information.

On June 11, the IRS published final regulations regarding the indoor tanning services excise tax.

On September 4, the IRS published a Notice of a proposed extension of a currently approved information collection necessary, under the tax’s implementing regulations, “to accurately calculate the tax on indoor tanning services when those services are offered with other goods and services”; no changes are proposed. Comments are due on November 4.

In May 2014, the IRS circulated an e-alert that included the Excise Tax on Indoor Tanning Services Audit Technique Guide, most recently updated in December 2013. Details on the tax are available on the IRS’s Indoor Tanning Services Tax Center.

On June 25, 2014, the IRS issued final regulations, effective June 26, 2014, affecting “disregarded entities responsible for collecting the indoor tanning services excise tax and owners of those disregarded entities.”

On October 1, the IRS posted a video on its YouTube page providing an overview of the indoor tanning tax.

Statutory Text

 
Implementation Status 
Summary 

SEC. 9017. EXCISE TAX ON ELECTIVE COSMETIC MEDICAL PROCEDURES
NULLIFIED
This section, and the amendments made by this section, are
null, void, and of no effect under section 10907(a), but was not formally
repealed; section 10907(b), which provides for an excise tax on
indoor tanning services, effectively substitutes for this section.
(a) IN GENERAL.—Subtitle D of the Internal Revenue Code of
1986, as amended by this Act, is amended by adding at the end the
following new chapter:
‘‘CHAPTER 49—ELECTIVE COSMETIC MEDICAL
PROCEDURES
‘‘Sec. 5000B. Imposition of tax on elective cosmetic medical procedures.
‘‘SEC. 5000B. IMPOSITION OF TAX ON ELECTIVE COSMETIC MEDICAL
PROCEDURES.
‘‘(a) IN GENERAL.—There is hereby imposed on any cosmetic
surgery and medical procedure a tax equal to 5 percent of the
amount paid for such procedure (determined without regard to this
section), whether paid by insurance or otherwise.
‘‘(b) COSMETIC SURGERY AND MEDICAL PROCEDURE.—For purposes
of this section, the term ‘cosmetic surgery and medical procedure’
means any cosmetic surgery (as defined in section
213(d)(9)(B)) or other similar procedure which—
‘‘(1) is performed by a licensed medical professional, and
‘‘(2) is not necessary to ameliorate a deformity arising
from, or directly related to, a congenital abnormality, a personal
injury resulting from an accident or trauma, or disfiguring
disease.
‘‘(c) PAYMENT OF TAX.—
‘‘(1) IN GENERAL.—The tax imposed by this section shall
be paid by the individual on whom the procedure is performed.
‘‘(2) COLLECTION.—Every person receiving a payment for
procedures on which a tax is imposed under subsection (a)
shall collect the amount of the tax from the individual on
whom the procedure is performed and remit such tax quarterly
to the Secretary at such time and in such manner as provided
by the Secretary.
“(3) SECONDARY LIABILITY.—Where any tax imposed by
subsection (a) is not paid at the time payments for cosmetic
surgery and medical procedures are made, then to the extent
that such tax is not collected, such tax shall be paid by the person
who performs the procedure.’’.
(b) CLERICAL AMENDMENT.—The table of chapters for subtitle
D of the Internal Revenue Code of 1986, as amended by this Act,
is amended by inserting after the item relating to chapter 48 the
following new item:
‘‘CHAPTER 49—ELECTIVE COSMETIC MEDICAL PROCEDURES’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to procedures performed on or after January 1, 2010.¿

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