The bill amends Section 44-18-30 of the General Laws, introducing a new title "44-18-30. Gross receipts exempt from sales and use taxes," and provides detailed definitions for terms such as "newspaper," "returnable containers," and "consumed." It specifies various exemptions from sales and use taxes, including for newspapers, school meals, containers, charitable organizations, gasoline, and manufacturing purchases. The bill also details the exemption process for contractors working with exempt organizations and conditions for tax exemption on tangible personal property, software, and utilities used in manufacturing. It further exempts food items from sales tax with certain exceptions, and outlines 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 includes a new insertion expanding the trade-in value exemption for motor vehicles to include certain pickup trucks.

The bill continues to outline exemptions for heating fuels, electricity, gas, manufacturing machinery, and equipment used in industrial plants. It exempts water for domestic use, scriptures of religious organizations, boats sold to nonresidents, youth activities equipment, farm equipment for commercial farming, and tangible personal property used in on-site hazardous waste recycling. The bill also exempts promotional literature of boat manufacturers, food items paid with government food stamps, transportation charges by motor carriers, the trade-in value of boats, and equipment used for research and development. It specifies exemption levels for farm equipment based on annual gross sales and includes provisions for record-keeping and certification of eligibility for exemptions. Additionally, the bill exempts coins, materials for farm structures, telecommunications services, boats for winter storage or repair, jewelry display products, and new or used boats under certain conditions. It also exempts interstate toll-free calls, mobile homes, materials for reconstructing manufacturing facilities, floral product materials, horse food products, non-motorized recreational vehicles sold to nonresidents, and fire safety systems. Notably, the bill introduces exemptions for renewable energy products, dietary supplements on prescriptions, human blood, agricultural products, diesel emission control technology, animal feed, seeds and plants for food growth, feminine hygiene products, breast pump supplies, and the trade-in value of motorcycles. It deletes the exemption for aircraft and parts and exempts alcoholic beverages sold by Class A licensees from sales tax and minimum markup requirements, excluding beer and malt beverages. The bill takes effect upon passage and includes a provision exempting the trade-in value of pickup trucks weighing 14,000 pounds or less from sales and use tax.

Statutes affected:
208: 44-18-30