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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:  

The Art of the Bicycle: 11 a.m. Nov. 21, 26, Delafield Arts Center, 719 Genesee St., Delafield. Diane Lehman, Peter Kudlata and Wheel & Sprocket. Gallery hours are 11 a.m.-4 p.m. Wednesday through Friday and 11 a.m.-3 p.m. first and third Saturdays and by appointment, Free www.delafieldartscenter.org.

Organ Concert: 1:30 p.m. Nov. 21, St. Jerome Catholic Church, 995 S. Silver Lake St., Oconomowoc. Oconomowoc Music Club is hosting a concert by renowned organist Dr. Simone Gheller. Refreshments will be served after the concert. Free.

Yuletide Faire: 5-9 p.m. Nov. 21; 9 a.m.-3 p.m. Nov. 22, Prairie Hill Waldorf School, N14-W29143 Silvernail Road, Pewaukee. $4 in advance or $5 at the door for adults and $1 in advance or $2 at the door for children under 15. Features strolling minstrels and costumed characters, puppet shows, storytelling, candle dipping, face painting, children’s craft workshops, children’s holiday shopping, live music, silent auction, children’s book sale, natural toys, 35 vendors, warm food, homemade desserts, candies, nuts and other treats. 

Fashionable Tidings Gala Luncheon: 11 a.m.-2 p.m. Nov. 22, Country Springs Hotel, 2810 Golf Road, Pewaukee. Holiday fashions of local clothiers Paul Bruce Goodman and Liebling Leather. Music by Brusubardis String Ensemble. Lunch includes shrimp scamp and angel hair pasta with vegetables provencale. Wine tasting  and auction. Benefits Waukesha Choral Union. $35. Call (414) 297-9310 for tickets. www.choralunion.org.

Updates to this calendar are made weekly Monday afternoon. 

 

All weekend happenings.