This bill amends the General Laws to update the definitions and provisions related to sales and use taxes. It adds definitions for various terms such as "Agreement," "Alcoholic beverages," "Bundled transaction," "Certified automated system (CAS)," "Certified service provider (CSP)," "Clothing," "Clothing accessories or equipment," "Protective equipment," "Sport or recreational equipment," "Computer," "Computer software," "Delivered electronically," "Electronic," "Load and leave," and "Prewritten computer software." The bill also adds provisions related to the sale of exempt tangible personal property and taxable tangible personal property. The bill also deletes the definition for "Drug" and replaces it with a new definition that includes compounds, substances, or preparations intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease, as well as insulin and medical oxygen. The bill also adds a definition for "Over-the-counter drug" and clarifies that it does not include grooming and hygiene products.

This bill amends current law to define various terms related to sales and use tax. It adds definitions for "grooming and hygiene products," "prescription," "delivery charges," "direct mail," "durable medical equipment," "food and food ingredients," "prepared food," "candy," "soft drinks," "dietary supplement," "food sold through vending machines," "hotel," "living quarters," "rooming house," "tourist camp," and "lease or rental." The bill also clarifies that the definition of "lease or rental" includes agreements covering motor vehicles and trailers where the amount of consideration may be increased or decreased by reference to the amount realized upon sale or disposition of the property. The bill also adds a definition for "mobility enhancing equipment" and clarifies that it does not include durable medical equipment. It also adds definitions for "Model 1 Seller," "Model 2 Seller," and "Model 3 Seller" to differentiate between sellers who use a CSP or CAS to perform their sales and use tax functions. The bill also adds a definition for "prosthetic device" and includes hair loss as a condition that can be artificially replaced. It defines "purchaser" as a person who buys personal property or receives a service, and "seller" as a person who sells or leases personal property or provides services. Additionally, the bill adds definitions for "specified digital products" and "telecommunications" terms. It includes various types of digital products, such as digital works, digital audio works, and digital books. It also defines terms related to telecommunications services, including ancillary services, conference bridging service, detailed telecommunications billing service, directory assistance, vertical service, and voice mail service. The bill clarifies that telecommunications service does not include certain services, such as data processing and information services, tangible personal property, advertising, and digital products delivered electronically.