The bill amends Section 44-18-30 of the General Laws, which pertains to sales and use taxes, by specifying various exemptions and providing detailed definitions for certain terms. Notable insertions include a new title for the section, definitions for "newspaper," "returnable containers," and "consumed," as well as exemptions for items such as newspapers, school meals, containers, and purchases for manufacturing purposes. The bill also addresses tax exemptions for contractors working with exempt organizations, tangible personal property, software, and utilities used in manufacturing, and specifies that machinery and equipment used in administration or distribution operations are not exempt. Additionally, it introduces an exemption for cloth facial coverings or disposable face masks sold at retail, aligning them with other clothing items typically exempt from sales and use taxes.

The bill further details exemptions for various items and services, including food and food ingredients with specific exclusions, medicines and medical equipment sold on prescription, motor vehicles for nonresidents, sales by blind people in public buildings, and adaptive equipment for persons with disabilities. It provides a use tax credit for specially adapted motor vehicles and exempts heating fuels, electricity, gas, and manufacturing machinery and equipment used in industrial plants. Starting October 1, 2012, clothing and footwear intended to be worn on or about the human body will be exempt from sales tax up to $250 per item. The bill also covers exemptions for telecommunications services, winter storage of boats, jewelry display products, materials used in farm construction, and various other items and services, including renewable energy products and feminine hygiene products. The act would take effect upon passage.

Statutes affected:
557: 44-18-30