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This Ruling has been obsoleted by AN 94(3)

Ruling 89-181

Architectural Services

You have inquired whether the sales and use tax applies to retainers.

The sales and use tax liability occurs at the time the architectural services are rendered even if payment is received by the architect during a subsequent filing period. Therefore, retainer fees for the availability of architectural services are subject to sales and use tax at the time that the clients are entitled to the architectural services under the retainers.

Certainly, if a situation arises whereby an architect receives payment for a retainer that will not take effect until the following filing period, then the tax will be due to the State when the architectural services are made available to the client.


October 30, 1989