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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:  

First Saturday Delafield Contra Dance: 7 p.m. March 7, Prairie Hill Waldorf School, N14-W29143 Silvernail Road, Pewaukee. Lessons are at 7-8 p.m. and dance with caller and band from 8-11 p.m. Visit www.delafieldcontra.com or call (262) 490-0769. $8, $5 students.

Elvis Tribute: 7 p.m. March 7, Hamilton Fine Arts Center, W220 N6151 Town Line Road, Sussex. Award-winning Elvis tribute artist Tony Rocker and his band, The Comeback Special,  presents “One Night with You.” Rocker wears exact replicas of the jumpsuits worn by Elvis and performs the hit songs in authentic style. $25-$30. Add $5 at the door. www.hamiltonfineartscenter.com

Live Music: 6 p.m. March 7, Seven Seas, 1807 Nagawicka Road, Hartland. Live Music at Seven Seas in the lounge & bar area. Enjoy drinks and dancing while listening to Johanna & Georgia sing and play saxophone. www.sevenseaswi.com

St. Paul & Paddy Irish-themed Fish Fry: 4:30-7:30 p.m. March 6, St. Paul School, S38 W31602 County Road D, Genesee Depot. Fiddler Ed Paloucek will perform Celtic music. Menu includes fried and baked cod, grilled cheese, baked potato, curly fries, coleslaw, applesauce, coffee and milk. Soda and alcoholic beverages, including green beer, are extra. Wear green or St. Patrick wear to be entered into a free drawing to win a gift basket of Irish-themed treats. Call (262) 392-2920 for reservations. $10.50 adults, $5 children, free for children 4 and younger.

Updates to this calendar are made weekly Monday afternoon. 

 

All weekend happenings.