The bill amends various sections of the General Laws related to taxation, introducing new exemptions and clarifying existing ones. It updates the list of properties exempt from taxation, including those belonging to the state, the United States, religious organizations, educational institutions, veterans' organizations, and individuals unable to pay taxes due to infirmity or poverty. The bill also addresses tax exemptions for manufacturers, specifying the definition of a manufacturer and the conditions under which their machinery and equipment are exempt from taxation. It includes provisions for tax exemptions on property used for pollution control, precious metal bullion, and properties owned by or leased to charitable organizations. Additionally, the bill allows cities and towns to establish exemptions for tangible personal property to promote economic development.

The bill further amends the definition of "Net income" for corporate taxpayers, including taxable income under U.S. laws, certain types of interest, specific exemptions, and the tax imposed by the chapter. It introduces deductions for interest on U.S. obligations, federal net operating loss deduction, and income from the production of food by urban and small farmers. The bill also exempts certain gross receipts from sales and use taxes, including sales to charitable, educational, and religious organizations, and provides specific definitions for exempt items and organizations. Furthermore, the bill outlines exemptions for contractors working on projects for exempt entities, gasoline and airplane fuels, food and food ingredients, medicines and drugs sold on prescription, and motor vehicles sold to nonresidents, among others. The bill includes both insertions and deletions of legal language, but the specific changes are not detailed in the text summary.

Statutes affected:
862: 44-3-3, 44-11-11, 44-18-30, 44-30-12