280-RICR-20-70-5. Pet care services (except veterinary and testing laboratories services) (version Adoption, 10/01/2012 to 03/15/2018)

State of Rhode Island – Division of Taxation Sales and Use Tax Regulation SU 12-152 Pet Care Services (Except Veterinary and Testing Laboratories Services) Table of Contents RULE 1 PURPOSE RULE 2 AUTHORITY RULE 3 APPLICATION RULE 4 SEVERABILITY RULE 5 DEFINITIONS RULE 6 TAXATION OF PET CARE SERVICES (EXCEPT VETERINARY AND TESTING LABORATORIES SERVICES) RULE 7 EFFECTIVE DATE RULE 1 PURPOSE This regulation implements Rhode Island General Laws (RIGL) Chapters 44-18 and 44- 19. These Chapters provide for Sales and Use Taxes Liability and Computation, and Sales and Use Taxes Enforcement and Collection, in regard to taxation of pet care services (except veterinary and testing laboratories services). RULE 2 AUTHORITY This regulation is promulgated pursuant to RIGL Chapters 44-18 and 44-19 as amended. These rules have been prepared in accordance with the requirements of RIGL §§ 44-1-1 et seq. and 44-19-33. RULE 3 APPLICATION The terms and provisions of these rules and regulations shall be liberally construed to permit the Department of Revenue to effectuate the purposes of RIGL Chapters 44-18 and 44-19 and other applicable state laws and regulations. RULE 4 SEVERABILITY If any provision of these rules and regulations or the application thereof to any person or circumstances is held invalid by a court of competent jurisdiction, the validity of the remainder of the rules and regulations shall not be affected thereby. RULE 5 DEFINITIONS “Person” means and includes any individual, partnership, association, corporation, estate, trust, fiduciary, limited liability company, limited liability partnership or any other legal entity. “Pet care services (except veterinary and testing laboratories services)” (NAICS 812910) means establishments engaged in providing pet care services (except veterinary and testing laboratories services), including but not limited to boarding, grooming, sitting, and training pets. “Services” means all activities engaged in for other persons for a fee, retainer, commission, or other monetary charge, which activities involve the performance of a service in this state as distinguished from selling property. In determining what a service is, the intended use, principal objective or ultimate objective of the contracting parties shall not be controlling. For the purposes of this rule, services rendered by an employee for his employer are not taxable. RULE 6 TAXATION OF PET CARE SERVICES (EXCEPT VETERINARY AND TESTING LABORATORIES SERVICES) (a) For the period commencing October 1, 2012 sales and use tax at the rate as provided in RIGL §§ 44-18-18 and 44-18-20 is imposed on receipts from the sale of pet care services (except veterinary and testing laboratories services) provided in this state. (b) Any person furnishing pet care services (except veterinary and testing laboratories services) in this state is a retailer as provided in RIGL §44-18-15, and is required to file a Business Application and Registration form with the Tax Administrator and to charge, collect, and remit Rhode Island sales and use tax. Example 1: An individual purchases the following pet care and veterinary services: Medical procedure for pet $1,000.00 Overnight stay for observation in conjunction with medical procedure 200.00 Shampoo 50.00* Nail clipping 10.00* Sub total 1,260.00 Sales Tax (* items subject to sales tax) 4.20 Total $1,264.20 Example 2: A family goes on vacation and purchases the following pet care services: Overnight stay for one week $500.00* Shampoo 50.00* Nail clipping 10.00* Sub total 560.00 Sales Tax (* items subject to sales tax) 39.20 Total $599.20 RULE 7 EFFECTIVE DATE This regulation shall take effect on October 1, 2012. David M. Sullivan Tax Administrator