The bill amends sections of the General Laws related to "Sales and Use Taxes — Liability and Computation," introducing new definitions and clarifications for terms such as "bundled transaction," "clothing," "computer software," and "drug." It specifies when a transaction is not considered a "bundled transaction" and provides detailed definitions for various other terms, including "grooming and hygiene products," "prescription," "delivery charges," "direct mail," "durable medical equipment," and "food and food ingredients." The bill also defines different types of sellers for sales and use tax purposes, such as "Model 1 Seller," "Model 2 Seller," and "Model 3 Seller," and amends the definition of "prosthetic device" to include devices for hair loss. It clarifies the taxation of telecommunications services and specifies what is included and excluded from the definition. The bill includes an insertion regarding gross receipts exempt from sales and use taxes but does not indicate any deletions from current law.

The bill outlines various exemptions from sales and use tax in the state, including sales to charitable, educational, and religious organizations, purchases for manufacturing purposes, medicines, drugs, and durable medical equipment sold on prescription, and now includes scalp hair prostheses or wigs recommended by a physician for medical conditions. It also exempts certain sales of motor vehicles to nonresidents, clothing and footwear up to $250 per item, and various other items such as commercial fishing vessels, commercial vessels over fifty tons, and precious metal bullion. The bill further provides tax exemptions for specific items and services, such as motor vehicles for veterans with disabilities, textbooks, hazardous waste recycling materials, and boats or vessels for winter storage or repair. It also exempts tangible personal property used by florists and garden centers, horse food products, non-motorized recreational vehicles sold to nonresidents, and various other items including renewable energy products and feminine hygiene products. The bill proposes to exempt scalp hair prostheses or wigs from sales tax due to medical necessity and clarifies exclusions related to breast pump collection and storage supplies. The act is set to take effect upon passage.