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Oconomowoc salon owner says Obamacare tanning tax forces her to close

March 11, 2013

Town of Oconomowoc - A clause in the Affordable Care Act, popularly known as Obamacare, has led to one local business shutting down, and is also affecting others.

Rio Tan, formerly on Brown Street, decided to close after the presidential election, said owner Marijo Rislov.

"When Obama defeated Romney in the election, I knew Obamacare would be upheld. In Obamacare there is a 10-percent tanning tax," she explained.

The tax was added to healthcare reform in place of an originally proposed 5-percent tax on Botox and cosmetic surgery referred to as "Botax."

Rislov said the tax made a significant difference in her business. She said she was making only a 10-percent profit at Rio Tan, "so Obama was getting 100 percent of my proceeds." Rislov said that instead of passing along the burden to her customers, she decided it was time to forego the tanning salon venture.

While Rislov said the tanning tax was enough to close up shop, Mary Beth Feider, who owns Jennifer & Co Tanning Spa on East Wisconsin Avenue in Oconomowoc, said she took over ownership of her business just as the tanning tax was implemented, so it's something that's always been there for her.

"I think people don't mind paying it. It's the same as a tax on cigarettes and alcohol," said Feider.

Feider said she also offers tanning at relatively low prices to attract customers and help offset the tax.

"You can tan pretty inexpensively with specials. We offer month specials like tanning for as little as 28 cents a minute," said Feider.

But Jason Ripp, co-owner of Tropitana Tanning Salon on Main Street, Oconomowoc, agreed with Rislov that the tanning tax has taken a toll on businesses.

"We saw right away that a lot of salons in the area shut down because of that, but for us when they closed we got customers looking for another place," said Ripp.

Ripp agreed that the tax cuts into profits. He said the salon tries to make up for it in other ways. "We try to sell more products because that's only a 5-percent tax. So we'll give away free tanning if you buy so many products," he said.

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Weekend Happenings

Featured this week:  

Knights of Columbus Fish Fry: 4:30 p.m. Feb. 12, St. Jerome Catholic Church, 995 S. Silver Lake St., Oconomowoc. The buffet style fish fry includes both baked and fried cod with French fries, German and American potato salad, coleslaw, rye bread, grilled cheese sandwiches, four-bean salad, and coffee and milk. Soda, beer and desserts are available for an additional cost. Carryout available: Call 569-3032 from 4:30 p.m. to 7 p.m. $5-$9

“Not Now Darling”: through Feb. 14, Lake Country Playhouse, 221 E. Capitol Drive, Hartland. www.lakecountryplayhousewi.org, (262) 367-4697

Hot Tango: 7 p.m. Feb. 12-13, Oconomowoc Arts Center, 641 E. Forest St., Oconomowoc. Accordion sensation Stas Venglevski, pairs up with Rosa Borisova on cello, Mark Carlstein on piano, and Joe Ketchum on violin offering classical and jazz elements of the traditional tango. Dinner option available. $15-$40.

 

K2 Valentine’s Piano Concert: 3 p.m. Feb. 14, Fox River Congregational Church, N34 W23575 Capitol Drive, Pewaukee. K2 stands for Kostia and Kostia the world-renowned musicians of the same name. Both considered prodigies of their time, the two pianists hail from St. Petersburg, Russia and are playing a free concert in order to help collect food items for the local food pantry in Pewaukee. Traditional Russian teas and cookies will be offered for a nominal fee. 

All weekend happenings

 

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