The bill amends Section 44-18-30 of the General Laws, which pertains to 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 manufacturing, food items, medicines, and vehicles sold to nonresidents. It also outlines the tax exemption process for contractors working with exempt organizations and conditions for exemptions on tangible personal property, software, and utilities used in manufacturing. Notably, the bill includes insertions such as the exemption of water for domestic use, sales of boats to nonresidents, and youth activities equipment sold by nonprofit organizations or schools.

The bill further details exemptions for items such as clothing and footwear, farm equipment, U.S. and state flags, motor vehicles for veterans, textbooks, and tangible personal property used in hazardous waste recycling. It also exempts promotional materials shipped out of state, 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. Additionally, the bill exempts materials used in farm structure construction, telecommunications services between companies, and boats brought into the state for winter services. A new exemption is introduced for the sale of animal supplies, food, and related products, marked by the insertion of item number (69). The bill is set to take effect immediately upon passage, and no deletions from the current law are mentioned.

Statutes affected:
5476: 44-18-30