KPTM FOX 42: Omaha News, Sports and Weather; kptm.com |Tanning Salons Getting Burned on Sales Tax

Clark Young

KPTM (Omaha) - For decades, indoor tanning salon companies in Nebraska have had to pay a state sales tax.  That tax has now climbed to 7%.

"I just moved here and I'm from Columbus and a lot of tanning salons down there were like $30 a month and then I found out that moving here they are like $50 a month," says one Ashley Lynn's customer.

In 2010 as part of the Federal Health Care Reform a 10% Federal sales tax was implemented nationwide on all tanning salons.

"31 states do not impose an indoor tanning tax and of those that do, Nebraska is among the highest taxed," says Barton Bonn the President of Ashley Lynn's tanning.

Bonn and other tanning salon owners are now joining forces and asking state lawmakers to put an end to the Nebraska State Sales Tax on tanning salons.

"indoor tanning is the only industry in the state that is a service that is taxed," says Bonn, "just like a lawyer service, an accountant service, a barber beauty service - we are the same as that, none of those industries are taxed."

Bonn says that since the Federal Sales Tax was added back in 2010, about a hundred tanning businesses in Nebraska have had to close and about 500 jobs were lost.

Bonn also adds that, with the exception of Iowa, every state that surrounds Nebraska does not have to pay a state sales tax for tanning salons.

The Legislative Bill to exempt indoor tanning services from sales and use taxes is now in the hands of the Nebraska revenue committee, and it's up to them to decide whether or not to advance the bill before the full Legislature for a vote.