The bill amends Section 44-18-30 of the General Laws in Chapter 44-18, titled "Sales and Use Taxes — Liability and Computation," by introducing a new section that outlines various types of gross receipts exempt from sales and use taxes. These exemptions include sales beyond the state's constitutional power, newspapers (excluding certain printed materials unless part of a newspaper), school meals, containers, charitable, educational, and religious organizations, gasoline, and purchases for manufacturing purposes. It also specifies exemptions for food and food ingredients (with certain exclusions), medicines, drugs, durable medical equipment, prosthetic devices, mobility enhancing equipment sold on prescription, motor vehicles to nonresidents, sales in public buildings by blind people, air and water pollution control facilities, and several other categories. The bill clarifies definitions related to manufacturing processes and administrative operations, and it includes provisions for the implementation of these exemptions through rules and regulations by the tax administrator. The bill further outlines exemptions for special adaptations and component parts for wheelchair-accessible vehicles, heating fuels, electricity and gas, and manufacturing machinery and equipment. It amends the definition of "automobile" for trade-in value exemptions and provides exemptions for precious metal bullion, commercial vessels, clothing and footwear (with a specific exemption effective October 1, 2012), and reinstates the unlimited exemption on sales of clothing and footwear upon federal authorization for states to require remote sellers to collect taxes. The bill maintains exemptions for water for residential use, Bibles, boats sold to nonresidents, youth activities equipment, farm equipment for commercial farming, and includes detailed definitions and requirements for exemption certificates. It also exempts sales of compressed air, flags, motor vehicles to certain veterans, textbooks, tangible personal property for hazardous waste recycling, and several other items and services. There are no specific or markers provided in the text, indicating that this summary covers the existing provisions without amendments to the legal language. The bill also includes a deletion of a previous exemption related to the trade-in value of motorcycles, specifying that the trade-in value of trucks weighing 14,000 pounds or less and motorcycles will be exempt from sales and use tax upon passage.

Statutes affected:
7128: 44-18-30