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 and exemptions from sales and use taxes in the state. Notable insertions include exemptions for newspapers, school meals, containers, charitable organizations, gasoline, manufacturing purchases, food and food ingredients with specific exclusions, prescribed medicines and medical equipment, motor vehicles for nonresidents, sales by blind people in public buildings, and adaptive equipment for persons with disabilities. It also specifies a use tax credit for specially adapted motor vehicles, exemptions for heating fuels, electricity, gas, manufacturing machinery, and equipment used in industrial plants, and clarifies that machinery and equipment used in administration or distribution operations are not exempt. The bill does not indicate any deletions from current law.

Additionally, the bill exempts transactions involving precious metal bullion, commercial vessels, commercial fishing vessels, clothing and footwear sales up to $250 per item, and outlines conditions for reinstating unlimited exemptions on clothing and footwear if federal law changes. It also exempts water for domestic use, sales of boats to nonresidents, youth activities equipment, farm equipment, U.S. and Rhode Island flags, motor vehicles to certain veterans, textbooks, hazardous waste recycling, promotional literature of boat manufacturers, food items paid by food stamps, transportation charges by motor carriers, trade-in value of boats, research and development equipment, coins, construction materials for farm structures, telecommunications services, winter storage of boats, 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 to nonresidents, and safety systems in buildings. The bill also proposes an exemption for machinery and equipment used to provide broadband communications service, effective July 1, 2023, to encourage the expansion of broadband infrastructure.

Statutes affected:
6015: 44-18-30