Federal Issues
We’ve been continuing our aggressive outreach to Capitol Hill focusing on both reauthorizing legislation for the Food and Drug Administration and repeal of the Tan Tax.
With regard to the Tan Tax, according to IRS data, receipts have fallen far short of projections. When the tax was implemented in 2010, the government estimated that an average of $67.5 million would be collected by the IRS in each quarter for 10 years. The IRS has only disclosed receipts for the first three quarters. In its September 2011 collections report, the IRS disclosed the following:
| Quarter (period ended) | Returns Filed | Tan Tax Reported |
|---|---|---|
| September 30, 2012 | 10,665 | $17.8 million |
| December 31, 2010 | 10,677 | $15.7 million |
| March 31, 2011 | 9,628 | $20.9 million |
The data highlights two important facts:
- The receipts averaged $18.1 million in the first three quarters, which is less than 1/3 of the projected revenue.
- The number of businesses filing returns dropped significantly (approximately 10%) from the first to the third quarter, which can only mean more businesses are closing their doors.
Clearly, if the Supreme Court doesn’t declare the Healthcare Reform Legislation unconstitutional, it is time to repeal this punitive tax.
State Legislative Report
State legislative activity has slowed considerably with all but a few having adjourned for the year. However, in May, new bills banning indoor tanning for teens under 18 were introduced in North Carolina and Ohio. We expected the North Carolina bill and the new Ohio bill is a companion Senate bill to one we have been fighting for 18 months.
The legislation in Illinois banning teen under 18 died in committee. A number of business owners from across the state were actively involved in this fight.
In Missouri, a parental consent bill died in the Senate for lack of support. Several business owners in MO got involved and helped convince policy makers that additional state requirements are unnecessary.
In New York and New Jersey, the “Tanning Mom” gave our enemies a major boost with nonstop coverage on the entertainment TV circuit. Even though everyone now acknowledges the event never occurred and there are already laws in both states that ban tanning indoors for anyone under age 14, those who would take away your personal rights still howl for more laws to stop events that never happen.
In addition, legislation is still pending in Massachusetts, Michigan, Ohio, Pennsylvania and Rhode Island.
Spray-Tanning
With the new attention being paid to spray-tanning, the ITA recommends the following to its members and the industry:
FDA has approved DHA for self-tanning products for decades, but does not specifically regulate DHA spray-tanning. The agency has published guidelines for those who use spray-tanning and is well aware that spray-tanning is a growing business but has no regulatory enforcement over its recommendations.
Please review the FDA website, which lists FDA’s recommendations for consumers who spray-tan.
Make certain that your staff is aware of consumer safety procedures outlined by your spray-tanning equipment’s manufacturer for its proper usage in your salon – particularly the usage of nose filters and protective eyewear.
A 2010, multi-source report from The European Commission established the DHA spray-tanning safety record that we stand by.
ITA Accepting Nominations for Board of Directors Seats
The ITA is pleased to announce that the nomination period for Board of Directors seats is now open.
This year, a total of five seats will be up for election: two Salon Sector seats and three in the consolidated Non-Salon Sector. Elected Board members will serve a three-year term of service commencing October 1, 2012 and concluding September 30, 2015.
If you would like to run for a seat on the ITA Board, you can download an application in the “Members Only” section of theita.com.
Membership on the ITA Board of Directors requires a significant commitment of time, effort and resources. Board Members are responsible for the management and operations of the ITA and for fulfilling committee assignments associated with this effort. ITA Board Members are also responsible for travel and lodging expenses associated with their participation in or attendance at approximately four meetings each year.
The following incumbent Board members’ terms expire on September 30, 2012 and will be eligible for re-election.
Salon Sector
Diane Lucas – Palm Beach Tan
Rob Quinn – TanPro
Non-salon Sector
Kevin Apgar – Cosmedico Light, Inc.
Marty Gallagher – Suntan Supply
Hans-Juergen Kreitz – JK-North America
Rick Norvell – Norvell Skin Solutions
Election Procedures
To be eligible for nomination to run for a Board seat, a candidate must fulfill the following requirements: A nominee must be a delegate of an ITA member company with dues current on July 15, 2012 from the membership sector to which he/she seeks nomination.
The executed application should include information about the nominee’s business, how long the nominee’s company has been in the industry, his/ her involvement in previous industry activities, information regarding any other leadership experience outside of the tanning industry (such as service on other boards, etc.), and a photograph for posting on the website with candidate information.
The completed application should be forwarded to:
Indoor Tanning Association
Attn: Nominations Committee
2025 M St., NW
Suite 800
Washington, DC 20036
By Fax to 202 367 2142
Or by email to Admin@theITA.com
Election Timetable
August 17, 2012 – Nomination Period Closes. All nominations must be received no later than 5:00 p.m. EDST on August 17, 2012.
September 3, 2012 – Official Ballots sent to all ITA member company delegates September 14 2012 – All ballots must be received at the ITA no later than 5:00 p.m. EDST on September 14, 2012 to be counted.
October 1, 2012 – Newly elected Board members officially announced.
Please direct any questions regarding this election to John Overstreet at Admin@theITA.com or call 888.377.0477.
