Tanning Tax Repeal Act of 2025
- Bill Number
- S. 1865
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-05-22: Read twice and referred to the Committee on Finance.
- Last Updated
- 2025-12-05T21:39:03Z
AI-Generated Summary
Purpose
The Tanning Tax Repeal Act of 2025 aims to eliminate the federal excise tax on indoor tanning services, which is currently a 10% tax imposed on customers for using tanning beds or booths at salons.
Key Provisions
- Repeal of the Tax: The bill amends the Internal Revenue Code of 1986 (the main U.S. tax law) by removing Chapter 49 from Subtitle D, which covers the indoor tanning tax, and deleting its reference in the table of contents.
- Effective Date: The repeal applies to all indoor tanning services performed after the bill becomes law.
Significant Changes to Existing Law
- This directly reverses a provision from the 2010 Affordable Care Act (also known as Obamacare), which introduced the excise tax to discourage tanning due to health risks like skin cancer and to generate revenue for healthcare funding.
- The change simplifies the tax code by eliminating a specific industry tax that salons must collect and remit to the government.
Potential Impacts
- On Citizens: Consumers who use indoor tanning services will no longer pay the 10% tax, potentially lowering costs for these services by about 10% (e.g., a $50 session would save $5).
- On Government Agencies: The Internal Revenue Service (IRS) will see reduced administrative work in collecting and processing this tax, but the federal government could lose an estimated $100–200 million in annual revenue (based on pre-repeal figures).
- On International Relations: No direct impact, as this is a domestic tax matter.
Main Stakeholders Affected
- Tanning Industry: Salon owners and operators benefit from reduced prices and simpler compliance, potentially boosting business.
- Consumers: Regular users of indoor tanning services gain cost savings.
- Federal Government and Taxpayers: Loses revenue that could affect funding for health programs; broader taxpayers may see indirect effects if revenue shortfalls lead to budget adjustments.
- Health Advocates: Groups focused on skin cancer prevention may oppose the repeal, as the tax was intended to deter risky behavior.
Notable Legal, Constitutional, or Political Implications
- Legal: The repeal streamlines the tax code without broader tax implications, but it could face challenges if tied to healthcare funding obligations under existing law.
- Constitutional: No apparent issues, as Congress has broad authority to amend tax laws.
- Political: Introduced by Republican senators (Paul, Ricketts, Cramer, Budd), it reflects efforts to reduce taxes on specific industries; passage would require approval from both Senate and House committees, highlighting partisan divides on Affordable Care Act reforms.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (4)
Sen. Ricketts, Pete [R-NE], Sen. Cramer, Kevin [R-ND], Sen. Budd, Ted [R-NC], Sen. Cruz, Ted [R-TX]
Recent Actions
- 2025-05-22: Read twice and referred to the Committee on Finance.
- 2025-05-22: Introduced in Senate
Bill Versions
- Tanning Tax Repeal Act of 2025 — issued 2025-05-22 — PDF (2 pages)