The bill proposes amendments to Section 44-18-30 of the General Laws, which deals with exemptions from sales and use taxes in the state. It introduces a new title for the section and provides detailed definitions for terms such as "newspaper," "returnable containers," and "consumed." The bill specifies various exemptions, including those for sales beyond the state's constitutional power to tax, newspapers, school meals, containers, charitable, educational, and religious organizations, gasoline, and purchases for manufacturing purposes. It also outlines the tax exemption process for contractors working with exempt organizations and conditions under which tangible personal property, software, and utilities used in manufacturing are exempt from taxation. Additionally, the bill exempts food and food ingredients from sales tax, with exceptions, and details exemptions for medicines, drugs, durable medical equipment, prosthetic devices, coffins, burial garments, motor vehicles sold to nonresidents, and sales in public buildings by blind people, among others.

The bill further includes exemptions for heating fuels, electricity, gas, manufacturing machinery, and equipment used in industrial plants. It clarifies that machinery and equipment used in administration or distribution operations are not exempt. The bill also provides exemptions for the trade-in value of motor vehicles, precious metal bullion transactions, commercial vessels, commercial fishing vessels, clothing and footwear sales, and specifies a use tax credit for specially adapted motor vehicles for individuals with disabilities. New exemptions are introduced for water for domestic use, the sale of boats to nonresidents, youth activities equipment, farm equipment, U.S. and Rhode Island flags, motor vehicles to certain veterans, textbooks, tangible personal property used in on-site hazardous waste recycling, promotional and product literature of boat manufacturers, food items paid for by food stamps, transportation charges by motor carriers, the trade-in value of boats, and equipment used for research and development. The bill also exempts the sale of coins, materials used in the construction of farm structures, telecommunications services, boats or vessels for winter storage, jewelry display products, interstate toll-free calls, mobile and manufactured homes, materials for reconstructing manufacturing facilities, floral product preparation, horse food products, non-motorized recreational vehicles, and sprinkler and fire alarm systems. Lastly, it introduces an exemption for reusable bags, defined as bags with stitched handles, designed for multiple uses, and made of durable materials. The act would take effect immediately upon passage, and no deletions from the current law are mentioned.

Statutes affected:
82: 44-18-30