Our membership includes tanning and other services. Can we avoid tanning excise tax by charging one price?

Bundling taxable indoor tanning with other services does not automatically eliminate the federal excise tax. Allocation and special rules, including the qualified physical fitness facility exception when applicable, require review. A business cannot create an exception merely by using a gym membership label.

A specific business-owner situation

A studio sells a monthly package with tanning, massage and fitness access. Its pricing and actual facility operations determine whether an allocation or a specific exception applies.

Illustrative example, not a client result.

What to establish before filing

1. Identify taxable tanning services.
2. Test any statutory or regulatory exception.
3. Support the allocation of bundled charges.

Which fact changes the answer?

A facility meeting the defined exception differs from a tanning-centered business adding exercise equipment. The actual business model matters.

A mistake to avoid

Do not assume every mixed wellness package qualifies as a physical fitness facility.

Records that support the decision

• Membership terms.
• Standalone prices.
• Facility operations and service-use records.

The decision to document

Document the package treatment and collection method before reporting Form 720 tax.

Business-owner tax planning and preparation scope · Discuss advisory scope with AE

Related questions

• Our heavy truck was tax-suspended for low mileage but exceeded the limit. What changes on Form 2290?
• We sold a heavy truck after paying the annual use tax. Can we transfer our payment to the replacement truck?

Sources and editorial context

• IRS Publication 510: excise taxes

General educational information prepared with AI assistance. No individual professional review is claimed. Apply the relevant tax-year rules to the actual records. Editorial policy · AI disclosure.