State of Rhode Island - Division of Taxation
Sales and Use Tax
Regulation SU 87-77
Occupational and Professional Services
In general, the services of physicians, surgeons, oculists, dentists, veterinarians, barbers, accountants, lawyers, architects, painters, refinishers, and services furnished by beauty shops, hospitals, infirmaries, sanatoriums, schools and colleges, laundries, dry cleaners, and other similar services are not subject to the sales tax.
In occupations and professions which primarily furnish and sell service, the tangible personal property purchased and used or consumed incidentally in the rendition of the service is taxable, and the tax is imposed on the sale of the property to the persons rendering service, as the ultimate consumer. In such cases, the receipts from the rendition of the occupational and professional services are not subject to the tax.
However, when persons engaged in the above occupations or professions sell tangible personal property in addition to rendering services, they are deemed to be making retail sales and they must obtain permits and pay the tax to the state.
R. GARY CLARK
DATE: May 1, 1987