Unless I'm mistaken, I don't believe that lay people, or anyone other than a governmental entity, has taxing authority under the US and state constitutions.
I suspect the $1 is a processing charge, or late charge, or something like that. Perhaps your elderly friend was confused?
Still, it's not very friendly of his doctor to do this; unless this doctor is an outstanding practitioner, I'd be looking for one who doesn't pad the bill.
There should be no tax on services. I would have him ask at office what the charge was for. Then if he is correct that they call it a tax he should call his ins company and talk with them.
Seattle, ask if the office charges for use of a credit card. We use them on noncovered charges and have never experienced the add on fees. Firms typically factor it into the price of noncovered items, where it's less noticeable.
I suspect the $1 is a processing charge, or late charge, or something like that. Perhaps your elderly friend was confused?
Still, it's not very friendly of his doctor to do this; unless this doctor is an outstanding practitioner, I'd be looking for one who doesn't pad the bill.