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will give a procurement preference for 12 U.S.C. 1818(u), or other applicable are confidential, as required by 26 qualifying biobased paint removers. By law, including the record of litigated U.S.C. 6103. that date, Federal agencies that have the proceedings; and (B) The public section responsibility for drafting or reviewing of Community Reinvestment Act Background specifications for products to be examination reports, pursuant to 12 This document amends the Excise procured shall ensure that the relevant U.S.C. 2906(b); and Tax Procedural Regulations (26 CFR specifications require the use of * * * * * part 40) and the Facilities and Services biobased paint removers. [FR Doc. 2013–13917 Filed 6–10–13; 8:45 am] Excise Tax Regulations (26 CFR part 49) § 3201.107 Water turbine bearing oils. BILLING CODE 1505–01–P under section 5000B of the Internal (a) Definition. Lubricants that are Revenue Code (Code). Section 5000B specifically formulated for use in the was added to the Code by section 10907 DEPARTMENT OF THE TREASURY bearings found in water turbines for of the Patient Protection and Affordable electric power generation. Previously Internal Revenue Service Care Act, Public Law 111–148 (124 Stat. designated turbine drip oils are used to 119 (2010)), to impose an excise tax on lubricate bearings of shaft driven water 26 CFR Parts 40, 49, and 602 indoor tanning services. On June 15, well turbine pumps. 2010, temporary regulations relating to [TD 9621] (b) Minimum biobased content. The this topic and a notice of proposed Federal preferred procurement product RIN 1545–BJ40 rulemaking cross-referencing the must have a minimum biobased content temporary regulations were published Indoor Tanning Services; Excise Taxes of at least 46 percent, which shall be in the Federal Register (TD 9486, 75 FR based on the amount of qualifying AGENCY: Internal Revenue Service (IRS), 33683; REG–112841–10, 75 FR 33740) biobased carbon in the product as a Treasury. (2010 regulations). Written and percent of the weight (mass) of the total ACTION: Final regulations and removal of electronic comments were received and organic carbon in the finished product. (c) Preference compliance date. No temporary regulations. a public hearing was held on October 11, 2011. All comments were later than June 11, 2014, procuring SUMMARY: This document contains final agencies, in accordance with this part, considered and are available for public regulations on the indoor tanning inspection at http:// will give a procurement preference for services excise tax imposed by the www.regulations.gov. After considering qualifying biobased water turbine Patient Protection and Affordable Care the written comments and comments bearing oils. By that date, Federal Act. These final regulations affect made at the public hearing, the agencies that have the responsibility for persons that use, provide, or pay for drafting or reviewing specifications for indoor tanning services. proposed regulations are adopted as products to be procured shall ensure final regulations by this Treasury DATES: Effective Date: These regulations that the relevant specifications require decision and the corresponding are effective on June 11, 2013. the use of biobased water turbine Applicability Dates: For dates of temporary regulations are removed. bearing oils. applicability, see §§ 40.0–1(d), Public comments on the 2010 Dated: June 5, 2013. 40.6302(c)–1(f), and 49.5000B–1(h). regulations identified two issues that Gregory L. Parham, FOR FURTHER INFORMATION CONTACT: the IRS and the Treasury Department Acting Assistant Secretary for Michael H. Beker or Natalie A. Payne, will study further and on which the IRS Administration, U.S. Department of at (202) 622–3130 (not a toll-free and the Treasury Department request Agriculture. number). additional comments. Those issues, the [FR Doc. 2013–13763 Filed 6–10–13; 8:45 am] treatment of bundled services and SUPPLEMENTARY INFORMATION: BILLING CODE 3410–TX–P undesignated payment cards, are Paperwork Reduction Act discussed later in this preamble. The collection of information Comments on those issues should be FEDERAL RESERVE SYSTEM contained in these final regulations has submitted in writing by October 9, 2013 and can be mailed to the Office of 12 CFR Part 261 been reviewed and approved by the Office of Management and Budget under Associate Chief Counsel (Passthroughs Rules Regarding Availability of control number 1545–2177. The and Special Industries), Re: REG– Information collection of information in these final 112841–10, CC:PSI:B7, Room 5314, regulations is in § 49.5000B–1. The 1111 Constitution Avenue NW., CFR Correction information is required to be maintained Washington, DC 20224. All comments ■ In Title 12 of the Code of Federal by the provider of indoor tanning received will be available for public Regulations, Parts 230 to 299, revised as services to accurately calculate the tax inspection at http:// of January 1, 2013, on page 258, in on indoor tanning services when those www.regulations.gov (IRS REG–112841– § 261.2(c)(1)(ii), paragraphs (A) and (B) services are offered with other goods 10). are reinstated to read as follows: and services. An agency may not conduct or Summary of Comments § 261.2 Definitions. sponsor, and a person is not required to Qualified Physical Fitness Facilities. respond to, a collection of information * * * * * Commenters questioned the exception (c)(1) * * * unless the collection of information for Qualified Physical Fitness Facilities displays a valid control number. * * * * * (QPFFs) in the 2010 regulations. (ii) * * * Books or records relating to a (A) Such final orders, amendments, or collection of information must be The 2010 regulations exempt from the modifications of final orders, or other retained as long as their contents may tax any membership fee paid to a QPFF actions or documents that are become material in the administration that includes access to indoor tanning specifically required to be published or of any internal revenue law. Generally, services. In a QPFF, taking into made available to the public pursuant to tax returns and tax return information consideration all of the facts and

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circumstances, the predominant obtained by redemption of ‘‘bonus redeemed specifically to pay for indoor business or activity of the facility is to points’’ through a loyalty program or tanning service. serve as a physical fitness facility. The similar program. In the case of Commenters noted that, in practice, a 2010 regulations limit the definition of promotions that entitle a customer to a provider can collect the tax only when a QPFF to a business that does not ‘‘free’’ tan with the purchase of a certain the card is bought and not when the charge separately for indoor tanning number of tans, the amount paid for the card is redeemed for indoor tanning services, offer such services to the purchased tans reflects a reduced price service. Thus, the commenters general public, or offer different for all of the tans rather than a package suggested that the tax be imposed on the membership fee rates based on access to of tans at full price coupled with a purchase of an undesignated payment indoor tanning services. ‘‘free’’ purchased tan. Thus, the tax is card. Providers could either estimate Commenters stated that an exception imposed on the purchase of the package how much of the card will be used for for QPFFs does not appear in section of tans rather than on the redemption of indoor tanning service in the future or 5000B and suggested that there is no the additional tan. collect tax on the entire purchase price. compelling reason to differentiate these Bundled goods and services. If a The final regulations do not adopt this facilities from other indoor tanning provider (other than a QPFF) sells suggestion. However, the Treasury service facilities. Commenters argued bundled services in which access to Department and the IRS welcome that while other providers of bundled indoor tanning services (in a specified comments on this issue. The final services must use a complicated method or unlimited amount) over a period of regulations authorize the Treasury of determining the amount attributable time is bundled with other goods and Department and the IRS to issue future to indoor tanning services (as described services, the 2010 regulations set out a guidance to provide additional options in § 49.5000B–1T(d)(3) of the 2010 formula to determine the amount for administering the tax with respect to regulations), QPFFs are exempt from the reasonably attributable to indoor undesignated payment cards. tax even though they provide the same tanning services. Form 720. The temporary regulations indoor tanning services. Thus, these Commenters noted that there are no require the tax to be reported and paid commenters suggested, the exception for commercially available point-of-sale quarterly on Form 720, ‘‘Quarterly QPFFs creates an unfair competitive software programs that automatically Federal Excise Tax Return.’’ advantage for some providers of indoor calculate the tax on the sale of indoor Commenters suggested that Form 720 is tanning services over others, and should tanning services that are bundled with too complex or burdensome for the not be included in the final regulations. other goods and services. Thus, The final regulations do not adopt this average provider to complete and file. providers must manually calculate the suggestion. Access to indoor tanning These commenters request that the IRS tax on these types of sales, a process services is incidental to a QPFF’s issue a special tax return form predominant business or activity. that the commenters said is time specifically and exclusively for Customers of a QPFF typically pay a consuming, expensive, and prone to reporting the section 5000B tax. monthly fee in exchange for access to all error. The final regulations do not adopt this equipment in the QPFF, including any The final regulations do not change suggestion. Form 720 is the standard indoor tanning equipment. Requiring a the rules for bundled goods and form used to report many excise taxes, QPFF to allocate its customers’ monthly services. The statute imposes the tax on including the other types of excise taxes membership fees among tanning and indoor tanning services; if those services collected from a customer upon the non-tanning services under such an are bundled with other goods and purchase of services, such as the taxes arrangement would be burdensome and services, the provider must determine on communications services and difficult to administer. In contrast, non- the amount of the payment for the transportation of persons and property QPFF providers of bundled goods and bundled goods and services that is by air. In addition, the Treasury services typically offer indoor tanning reasonably attributable to indoor Department and the IRS believe that services to customers as part of the tanning services. The 2010 regulations creating a new form would add purchase of a package of specific goods set forth a reasonable method for unnecessary complexity. For more or services. This generally allows the making this determination, which is information about reporting provider to determine the portion of the retained with minor clarifications in the requirements, see § 40.6011(a)–1(a). final regulations. However, the final purchase price that relates to the use of Additional Clarification of 2010 regulations also authorize the Treasury indoor tanning services by the customer Regulations and allocate the appropriate portion of Department and the IRS to issue future the purchase price to those services. guidance to provide additional options Membership and enrollment fees. The Free indoor tanning services; bonus for making this determination. The final regulations clarify that the tax is points. Commenters requested guidance Treasury Department and the IRS imposed on amounts paid for prepaid on the application of the tax to free request comments on other reasonable monthly membership and enrollment indoor tanning services and indoor methods for determining the amount of fees to a provider of indoor tanning tanning services that are sold at reduced a payment for bundled goods and services, other than a QPFF, even if a rates. services that is reasonably attributable member does not use any indoor The final regulations provide that the to indoor tanning services. tanning services during the period to section 5000B tax only applies if an Undesignated payment cards. The which the fee relates. amount is paid for indoor tanning 2010 regulations define an undesignated Some providers offer monthly services. If services are provided at a payment card as a gift certificate, gift membership programs through which reduced rate, the tax applies to the card, or similar item that can be customers receive a number of tanning amount actually paid for the services. redeemed for goods or services that sessions at a lower cost than would be See Rev. Rul. 84–12 (1984–1 CB 211) may, but do not necessarily, include charged for each session individually. and the rulings cited therein. Also indoor tanning services. Under the 2010 Some of these providers charge consistent with Rev. Rul. 84–12, the regulations, the tax is not imposed on customers an enrollment fee when the final regulations do not apply the tax to the purchase of these cards; rather, the customers join a membership program. indoor tanning services that are tax is imposed only when the card is Typically, the customer pays the

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enrollment fee before paying the first Drafting Information § 40.6302(c)–1T(g),’’ and adding ‘‘by monthly membership charge. The principal author of these statute’’ in its place. ■ Some providers also impose fees on regulations is Michael H. Beker, Office 2. Paragraph (e)(1)(iii) is amended by their customers to allow the customer to of the Associate Chief Counsel removing the language ‘‘chemicals); skip one or more months of membership (Passthroughs and Special Industries). and’’ and adding ‘‘chemicals);’’ in its dues without being charged an However, other personnel from the IRS place. enrollment fee when the customer ■ and the Treasury Department 3. Paragraph (e)(1)(iv) is amended by restarts the monthly membership. participated in their development. removing the language ‘‘plans).’’ and Amounts paid to a provider that adding ‘‘plans); and’’ in its place. temporarily suspend a periodic List of Subjects ■ 4. Paragraph (e)(1)(v) is added. membership program are amounts paid ■ 5. Paragraph (f) is revised. 26 CFR Part 40 for indoor tanning services. Because ■ 6. Paragraph (g) is removed. payment of these fees allows the Excise taxes, Reporting and The addition and revision read as customer to receive indoor tanning recordkeeping requirements. follows: services at reduced prices, the final 26 CFR Part 49 regulations clarify that these fees are § 40.6302(c)–1 Deposits. subject to the section 5000B tax as Excise taxes, Reporting and * * * * * amounts paid for indoor tanning recordkeeping requirements, Telephone, (e) * * * services. Transportation. (1) * * * (v) Section 5000B (relating to indoor 26 CFR Part 602 Availability of IRS Documents tanning services). The IRS revenue ruling cited in this Reporting and recordkeeping * * * * * preamble is published in the Internal requirements. (f) Effective/applicability date. This Revenue Cumulative Bulletin and is Adoption of Amendments to the section applies to deposits and available from the Superintendent of Regulations payments made after March 31, 2013. Documents, P.O. Box 371954, Pittsburgh For rules that apply before that date, see PA, 15250–7954. Accordingly, 26 CFR parts 40, 49, and 26 CFR part 40 (revised as of April 1, 602 are amended as follows: Special Analyses 2013). It has been determined that this PART 40—EXCISE TAX PROCEDURAL § 40.6302(c)–1T [Removed] REGULATIONS Treasury decision is not a significant ■ Par. 5. Section 40.6302(c)–1T is regulatory action as defined in ■ removed. Executive Order 12866, as Paragraph 1. The authority citation supplemented by Executive Order for part 40 continues to read in part as follows: PART 49—FACILITIES AND SERVICES 13563. Therefore, a regulatory EXCISE TAX assessment is not required. It also has Authority: 26 U.S.C. 7805. * * * been determined that section 553(b) of ■ Par. 2. Section 40.0–1 is amended as ■ Par. 6. The authority citation for part the Administrative Procedure Act (5 follows: 49 continues to read in part as follows: U.S.C. chapter 5) does not apply to these ■ 1. Paragraph (a), second sentence, is Authority: 26 U.S.C. 7805. * * * regulations. It is hereby certified that amended by removing the language ■ Par. 7. Section 49.0–1 is revised to these regulations will not have a ‘‘and 39’’ and adding ‘‘39, and 49’’ in its read as follows: significant economic impact on a place. substantial number of small entities. ■ 2. Paragraph (a), third sentence, is § 49.0–1 Introduction. This certification is based on the fact amended by removing the language The regulations in this part 49 are that these regulations are designed to ‘‘and chapter 39 to taxes imposed on designated ‘‘Facilities and Services accommodate the recordkeeping registration-required obligations’’ and Excise Tax Regulations.’’ The methods currently used by small adding ‘‘chapter 39 to taxes imposed on regulations relate to the taxes on entities that provide indoor tanning registration-required obligations; and communications and transportation by services. The regulations merely chapter 49 to taxes imposed on indoor air imposed by chapter 33 of the implement the tax imposed by section tanning services’’ in its place. Internal Revenue Code and the taxes on 5000B of the Code, and section 6001 of ■ 3. Paragraph (d) is revised. indoor tanning services imposed by the Code already requires taxpayers to ■ 4. Paragraphs (e) and (f) are removed. section 5000B. See part 40 of this keep books and records sufficient to The revision reads as follows: chapter for regulations relating to show whether or not they are liable for § 40.0–1 Introduction. returns, payments, and deposits of these tax. The information necessary to taxes. prepare these records is readily * * * * * available to providers, and this (d) Effective/applicability date. This § 49.0–3T [Removed] recordkeeping will take little additional part applies to returns that relate to ■ Par. 8. Section 49.0–3T is removed. time to complete. Accordingly, a periods beginning after March 31, 2013. ■ For rules that apply before that date, see Par. 9. Subpart G is revised to read as Regulatory Flexibility Analysis under follows: the Regulatory Flexibility Act (5 U.S.C. 26 CFR part 40 (revised as of April 1, chapter 6) is not required. Pursuant to 2013). Subpart G—Indoor Tanning Services section 7805(f) of the Code, the notice § 40.0–1T [Removed] of proposed rulemaking that preceded § 49.5000B–1 Indoor tanning services. these regulations was submitted to the ■ Par. 3. Section 40.0–1T is removed. (a) Overview. This section provides Chief Counsel for Advocacy of the Small ■ Par. 4. Section 40.6302(c)–1 is rules for the tax imposed by section Business Administration for comment amended as follows: 5000B on any indoor tanning service. on its impact on small business, and no ■ 1. Paragraph (a)(1) is amended by (b) Imposition of tax—(1) General comments were received. removing the language ‘‘by statute, by rule. Tax is imposed by section 5000B

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at the time of payment for any indoor (iii) That does not sell indoor tanning (iii) Are shown in the exact amounts tanning service. services for a fee to the public or in the provider’s records pertaining to (2) Undesignated payment cards—In otherwise offer different pricing options the indoor tanning services charge. general. Payment for indoor tanning to its members based in whole or in part (3) Charges for other goods and services is made when an undesignated on access to indoor tanning services. services; tanning services bundled. This payment card is redeemed, in whole or (6) The term undesignated payment paragraph (d)(3) applies if paragraph in part, to pay for indoor tanning card means a gift certificate, gift card, or (d)(2) of this section does not apply. If services (and not when a payment is similar item that can be redeemed for a provider offers indoor tanning services made to purchase the undesignated goods or services that may, but do not (whether of a specified or unlimited payment card). necessarily, include indoor tanning amount, including ‘‘free’’ or reduced- (c) Definitions—(1) The term indoor services. rate indoor tanning services) bundled tanning service means a service (d) Application of tax—(1) Tax on with other goods and services, the employing any electronic product total amount paid for indoor tanning payment for the bundled services designed to incorporate one or more services—(i) In general. The tax is includes an amount paid for indoor ultraviolet lamps and intended for the imposed on the total amount paid for tanning services. The tax applies to that irradiation of an individual by indoor tanning services, including any portion of the amount paid to the ultraviolet radiation, with wavelengths amount paid by insurance. The total provider that is reasonably attributable in air between 200 and 400 nanometers, amount paid is presumed to include the to indoor tanning services. The amount to induce skin tanning. The term does tax if the tax is not separately stated. reasonably attributable to indoor not include phototherapy service (ii) Free services and reduced rates. tanning services may be determined performed by, and on the premises of, The tax does not apply to indoor by— a licensed medical professional (such as tanning services that are provided free (i) Applying to the total amount paid a dermatologist, psychologist, or of charge. Indoor tanning services are a ratio determined by comparing— registered nurse). provided free of charge if no one pays (A) The provider’s charge for indoor (2) The term other goods and services anything of value to the provider of the tanning services not in bundled services includes, but is not limited to, service for the indoor tanning service. or, if the provider only charges for protective eyewear, footwear, towels, Thus, for example, tax is not imposed indoor tanning services as part of and tanning lotions; manicures, on the redemption of a promotional bundled services, the fair market value pedicures, and other cosmetic or spa coupon for indoor tanning services if of similar indoor tanning services (based treatments; and access to sport or the coupon is provided at no cost and on the amount charged by comparable exercise facilities. at no obligation to purchase anything. If providers in the same geographic area); (3) The term phototherapy service indoor tanning services are provided at to means a service that exposes an a reduced rate, the tax applies to the (B) The charge determined in individual to specific wavelengths of amount actually paid for the services. paragraph (d)(3)(i)(A) of this section light for the treatment of— (iii) Bonus points. The redemption of plus the provider’s charge for the other (i) Dermatological conditions (such as benefits such as ‘‘bonus points’’ under goods and services in the bundled acne, psoriasis, and eczema); a loyalty program or similar program or services or, if the provider only charges (ii) Sleep disorders; promotion is not a payment for indoor for other goods and services as part of (iii) Seasonal affective disorder or tanning services. Thus, for example, in bundled services, the fair market value other psychiatric disorder; a promotion that entitles a customer to of similar goods and services (based on (iv) Neonatal jaundice; a ‘‘free’’ tan with the purchase of four the amount charged by comparable (v) Wound healing; or tans, tax is not imposed on the providers in the same geographic area); (vi) Other medical condition redemption of the fifth tan because the or determined by a licensed medical amount paid for the four tans included (ii) Any other method allowed in professional to be treatable by exposing a reduced price for the fifth tan. guidance published in the Internal the individual to specific wavelengths (iv) Other fees. Fees for starting, Revenue Bulletin. of light. joining, registering, enrolling, and (4) Exemption; qualified physical (4) The term provider means a person similar fees paid to a provider to join a fitness facilities. No portion of a that provides an indoor tanning service monthly (or other periodic) membership payment to a qualified physical fitness as defined in paragraph (c)(1) of this program that provides indoor tanning facility (within the meaning of section. services are amounts paid for indoor paragraph (c)(5) of this section) that (5) The term qualified physical fitness tanning services. Similarly, amounts includes access to indoor tanning facility means a facility— paid to a provider that temporarily services is treated as a payment for (i) In which the predominant business suspend a periodic membership indoor tanning services. or activity is providing equipment and program are amounts paid for indoor (e) Person liable for the tax—(1) services to its members for purposes of tanning services. General rule. The person who pays for exercise and physical fitness (2) Charges for other goods and the indoor tanning service is deemed to (determined by taking into services; tanning services separately be the person on whom the service is consideration all of the facts and stated. If a payment covers charges for performed for purposes of collecting the circumstances, such as the cost of the indoor tanning services as well as other tax. Thus, the person paying for the equipment, variety of services offered, goods and services, the charges for other indoor tanning service is liable for the actual usage of services by customers, goods and services may be excluded in tax at the time of payment. revenue generated by different services, computing the tax payable on the (2) Undesignated payment cards—(i) and how the entity holds itself out to amount paid, if the charges— In general. In the case of a payment the public through advertising or other (i) Are separable (regardless of the made with an undesignated payment means); manner of invoicing the charges); card (as defined in paragraph (c)(6) of (ii) In which providing indoor tanning (ii) Do not exceed the fair market this section), the person who redeems services is not a substantial part of the value of such other goods and services; the card, in whole or in part, to pay business or activity; and and specifically for indoor tanning services

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is the person who pays for the indoor at the time A pays for the services, P is liable unlimited indoor tanning services. If the tanning services. Thus, the person who for the tax. services are purchased separately, P charges redeems an undesignated payment card, Example 3: Charges for other goods and (exclusive of the tax imposed by section in whole or in part, to pay specifically services; tanning services bundled. P 5000B) $150.00 for unlimited indoor tanning provides indoor tanning services and other services during the month of July, and for indoor tanning services is liable for goods and services and offers bundled $900.00 for the other equipment and services the tax at the time such payment is services. On July 1, 2013, A, an individual, during the month of July, not including made (as described in paragraph (b)(2) buys bundled service from P that includes 10 indoor tanning services. Under paragraph (b) of this section). swimming lessons, the use of towels while of this section, A has made a payment for (ii) Alternative treatment. The on P’s premises, one pair of protective indoor tanning services and the tax will be Treasury Department and IRS may eyewear, and 2 ‘‘free’’ 10-minute indoor computed under the rules of paragraph (d)(3) provide additional options for the tanning services. P charges $252.00 of this section. As determined under paragraph (d)(3) of this section, the section treatment of undesignated payment (exclusive of the tax imposed by section 5000B) for the bundled services. If these 5000B tax applies to the amount reasonably cards in guidance published in the services are purchased separately, P charges attributable to the indoor tanning services, Internal Revenue Bulletin. (exclusive of the tax imposed by section which is $142.86 (($150.00/$1050.00) × (3) Tax not collected at time of 5000B) $25.00 per swimming lesson, $15.00 $1000.00). If A does not pay the tax at the payment. If the person paying for the for a 10-minute indoor tanning service, $2.00 time A pays for the bundled services, P is indoor tanning services does not pay the for the protective eyewear, and does not liable for the tax. tax to the person receiving the payment charge for the use of towels while on P’s Example 7: Payments to qualified physical for the services at the time of payment premises. As determined under paragraph fitness facilities. P operates a full-service gym for the services, the person receiving the (d)(3) of this section, the section 5000B tax facility that offers fitness classes, multiple exercise machines (such as treadmills, payment is liable for the tax. applies to the amount reasonably attributable to the indoor tanning service, which is stationary bicycles, weight training (f) Persons receiving payment must $26.81 (($30.00/$282.00) × $252.00). machines, and free weights), and has as its collect tax. Every person receiving a Example 4: Person liable for the tax. On predominant business providing these payment for indoor tanning services on July 1, 2013, A buys bundled services facilities, equipment, and services to which a tax is imposed under this (described in Example 3) from P as a gift for members for purposes of exercise and section must collect the amount of the B. Under paragraph (e)(1) of this section, A physical fitness. P provides its members with tax from the person making that is deemed to be the person on whom the access to indoor tanning services, comprised payment. indoor tanning services are performed for of two tanning beds that meet the definition purposes of collecting the tax. Therefore, of indoor tanning services under paragraph (g) Examples. The following examples (c)(1) of this section. P generally charges its illustrate the application of section under paragraph (b)(1) of this section, A is liable for the tax when A pays for the members a fee for monthly usage of its 5000B and this section. services. The tax will be computed under the facilities, equipment, and services, but also Example 1: Imposition of tax; general rule. rules of paragraph (d)(3) of this section. If A offers short-term or free trial memberships (i) P is a nail salon that also provides indoor does not pay the tax at the time A pays for and allows non-members to purchase tanning service incidental to its primary the services, P is liable for the tax. individual or a series of exercise classes. P business of providing nail salon services. P Example 5: Undesignated payment cards. does not charge any fee for the indoor advertises a price of $15.00 (exclusive of the (i) P operates a spa that provides a variety of tanning services, does not offer indoor tax imposed by section 5000B) for one 10- cosmetic goods and services, including tanning services separately from its other minute indoor tanning service. During a indoor tanning services. On July 1, 2013, A services, and has no membership tier or period when the tax is 10 percent of the buys a gift certificate in the amount of category that differs from others based on amount paid, P calculates the section 5000B $100.00 from P as a gift for B. The gift access to the indoor tanning services. P holds tax on $15.00 as provided by paragraph (d)(1) certificate may be redeemed by B for B’s itself out to the public through advertising of this section. Thus, the tax is $1.50 ($15.00 choice among several services offered by P, and marketing as providing equipment and × 10%). The person paying for the service is including indoor tanning services. On July services to improve physical fitness. On July liable for the tax when that person pays for 15, 2013, B partially redeems the gift 1, 2013, A pays a membership fee to P in the services. If P does not collect the tax from certificate to pay for one 10-minute indoor return for use of P’s facility during the month the person at the time of the payment for the tanning service. of July. Under paragraph (d)(4) of this services, P is liable for the tax. (ii) Under paragraph (b)(2) of this section, section, no portion of A’s membership fee payment is treated as a payment made for (ii) The facts are the same as in paragraph a payment for indoor tanning services is indoor tanning services, because A is a (i) of this example except that P’s advertised made, and the tax under section 5000B is qualified physical fitness facility under price of $15.00 includes the tanning tax. In imposed, on July 15, 2013, when B partially paragraph (c)(5) of this section. Therefore, no this case, the tax is $1.36 ($15.00 × 10%/ redeems the gift certificate to pay for one liability for tax arises under section 5000B. 110%) under the second sentence of indoor tanning service. Under paragraph paragraph (d)(1) of this section. (e)(2) of this section, B is the person who (h) Effective/applicability date. This Example 2: Charges for other goods and pays for the indoor tanning services. section applies to amounts paid on or services; tanning services separately stated. Therefore, B is liable for the tax, computed after June 11, 2013. For rules that apply P provides indoor tanning services and other under the rules of paragraph (d) of this before that date, see 26 CFR part 49 goods and services. On July 1, 2013, A, an section, and pays the tax by permitting P to (revised as of April 1, 2013). individual, pays P for one 10-minute indoor debit the amount of the tax from the balance tanning service and one pair of protective of the gift certificate or by paying the amount PART 602—OMB CONTROL NUMBERS eyewear. P charges $15.00 for the 10-minute of the tax to P in cash. If B does not pay the UNDER THE PAPERWORK indoor tanning service and $2.00 for a pair tax at the time B partially redeems the gift of protective eyewear. The $2.00 charge for certificate to pay for the indoor tanning REDUCTION ACT the protective eyewear does not exceed its services, P is liable for the tax. ■ fair market value. The invoice from P is Example 6: Charges for other goods and Par. 10. The authority citation for part $17.00 (exclusive of the tax imposed by services; tanning services bundled; amount 602 continues to read as follows: section 5000B) and separately states the cost attributable to tanning services. On July 1, Authority: 26 U.S.C. 7805. of the protective eyewear. Because the cost of 2013, A pays $1,000.00 (exclusive of the tax ■ the protective eyewear is separately stated, P imposed by section 5000B) to spa P for the Par. 11. In § 602.101, paragraph (b) is calculates the section 5000B tax on $15.00 as right to use the following equipment and amended by removing the entry for provided by paragraph (d)(2) of this section. services during the month of July: up to four § 1.5000B–1 and adding an entry for A is liable for the tax when A pays for the massages or facials, unlimited use of a sauna, 49.5000B–1 in numerical order to the services. If P does not collect the tax from A steam room, showers, and towel service, and table to read as follows:

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§ 602.101 OMB Control numbers. Folder on the line associated with this local law enforcement vessels will also * * * * * rulemaking. You may also visit the provide actual notice to mariners. (b) * * * Docket Management Facility in Room Under 5 U.S.C. 553(d)(3), the Coast W12–140 on the ground floor of the Guard finds that good cause exists for CFR part or section where Current OMB Department of Transportation West making this rule effective less than 30 identified and described control No. Building, 1200 New Jersey Avenue SE., days after publication in the Federal Washington, DC 20590, between 9 a.m. Register. The Coast Guard did not receive information from the event ***** and 5 p.m., Monday through Friday, 49.5000B–1 ...... 1545–2177 except Federal holidays. sponsor early enough to allow 30 days FOR FURTHER INFORMATION CONTACT: If after publication before making this rule ***** you have questions on this rule, call or effective. This final rule is necessary to email Lieutenant Corrina Ott, U.S. Coast protect the public and race participants during the regatta, and therefore, must Beth Tucker, Guard Sector Delaware Bay, Chief of Waterways Management Division; be effective by the start of the event on Acting Deputy Commissioner for Services and June 23, 2013. Enforcement. telephone 215–271–4902, email Approved: May 31, 2013. [email protected]. If you have B. Basis and Purpose Mark J. Mazur, questions on viewing or submitting Offshore Performance Association Assistant Secretary of the Treasury (Tax material to the docket, call Renee V. sponsors an annual offshore race held Policy). Wright, Program Manager, Docket on the third Sunday in July on the Operations, telephone 202–366–9826. [FR Doc. 2013–13876 Filed 6–10–13; 8:45 am] waters of the Atlantic Ocean at Atlantic BILLING CODE 4830–01–P SUPPLEMENTARY INFORMATION: City, New Jersey. The regulation listing annual marine Table of Acronyms events within the Fifth Coast Guard DEPARTMENT OF HOMELAND DHS Department of Homeland Security District and special local regulations SECURITY FR Federal Register locations is 33 CFR 100.501. The Table NPRM Notice of Proposed Rulemaking to § 100.501 identifies special local Coast Guard regulations by COTP zone, with the A. Regulatory History and Information COTP Delaware Bay zone listed in 33 CFR Part 100 section ‘‘(a.)’’ of the Table. The Table to The regulation for this marine event is § 100.501, at section (a.) event Number [Docket No. USCG–2013–0305] located at 33 CFR 100.501, Table to ‘‘4’’ describes the enforcement date and § 100.501, section (a.) line 4. RIN 1625–AA08 regulated location for this marine event. The Coast Guard is issuing this The date listed in the Table has the Special Local Regulations for Marine temporary final rule without prior marine event on the third Sunday in Events, Atlantic City Offshore Race, notice and opportunity to comment July. However, this temporary rule Atlantic Ocean; Atlantic City, NJ pursuant to authority under section 4(a) changes the marine event date to the of the Administrative Procedure Act AGENCY: Coast Guard, DHS. fourth Sunday in June. (APA) (5 U.S.C. 553(b)). This provision A fleet of spectator vessels is ACTION: Temporary final rule. authorizes an agency to issue a rule anticipated to gather nearby to view the without prior notice and opportunity to SUMMARY: The Coast Guard is marine event. Due to the need for vessel comment when the agency for good control during the marine event vessel temporarily changing the enforcement cause finds that those procedures are date of a special local regulation for one traffic will be temporarily restricted to ‘‘impracticable, unnecessary, or contrary provide for the safety of participants, specific recurring marine event in the to the public interest.’’ Under 5 U.S.C. Fifth Coast Guard District. This spectators and transiting vessels. Under 553(b)(B), the Coast Guard finds that provisions of 33 CFR 100.501, during regulation applies to only one recurring good cause exists for not publishing a marine event, held on the Atlantic the enforcement period, vessels may not notice of proposed rulemaking (NPRM) enter the regulated area unless they Ocean, offshore of Atlantic City, New with respect to this rule because Jersey. The marine event formerly receive permission from the Coast immediate action is needed to minimize Guard Patrol Commander. originated on the third Sunday in July, potential danger to the public during the but now is on the fourth Sunday in event. The potential dangers posed by C. Discussion of the Final Rule June; the special local regulation is marine events conducted on the The Coast Guard will temporarily necessary to provide for the safety of life Atlantic Ocean, near Atlantic City, with suspend the regulation listed in Table to on navigable waters during the event. other vessel traffic makes a special local § 100.501, section (a.) event Number 4, This action is intended to temporarily regulation necessary to provide for the and insert this temporary regulation at restrict vessel traffic in a portion of the safety of participants, spectator craft and Table to § 100.501, at section (a.) as Atlantic Ocean near Atlantic City, New other vessels transiting the event area. event Number ‘‘14’’, in order to reflect Jersey, during the event. For the safety concerns noted, it is in that the marine event will be held on DATES: This rule will be effective on the public interest to have this June 23, 2013. This special local June 23, 2013, only. regulation in effect during the event. In regulation will be enforced from 10 a.m. ADDRESSES: Documents mentioned in addition, it is impracticable to provide until 5 p.m. this preamble are part of docket [USCG– for a notice and comment period The regulated area of this special local 2013–0305]. To view documents because the Coast Guard received late regulation includes all the waters of the mentioned in this preamble as being notice from the event planner of this Atlantic Ocean, adjacent to Atlantic available in the docket, go to http:// change in date. The Coast Guard will City, New Jersey, bounded by a line www.regulations.gov, type the docket issue broadcast notice to mariners to drawn between the following points: number in the ‘‘SEARCH’’ box and click advise vessel operators of navigational southeasterly from a point along the ‘‘SEARCH.’’ Click on Open Docket restrictions. On scene Coast Guard and shoreline at latitude 39°21′50″ N,

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