The bill proposes amendments to Section 44-18-30 of the General Laws, which deals with exemptions from sales and use taxes in the state. It introduces a new title for the section and provides detailed definitions for terms such as "newspaper," "returnable containers," and "consumed." The bill specifies various items and situations that are exempt from sales and use taxes, including sales beyond the state's constitutional power to tax, newspapers, school meals, containers, charitable, educational, and religious organizations, gasoline, purchases for manufacturing purposes, and distribution operations related to manufacturing businesses. It also exempts sales to the state and its political subdivisions, food and food ingredients with certain exclusions, prescribed medicines, drugs, and medical equipment, motor vehicles to nonresidents, sales by blind people in public buildings, and items related to air and water pollution control, among others. The bill includes an insertion that expands the trade-in value exemption for motor vehicles to include certain pickup trucks and outlines a use tax credit for specially adapted motor vehicles for individuals with disabilities.

Furthermore, the bill exempts various other items from sales and use taxes, such as heating fuels, electricity, gas, manufacturing machinery, and equipment. It covers exemptions for water for domestic use, religious scriptures, boats sold to nonresidents, youth activities equipment, farm equipment, compressed air, flags, vehicles sold to veterans, textbooks, and tangible personal property used in hazardous waste recycling. The bill also exempts promotional literature of boat manufacturers, food items paid with government food stamps, transportation charges by motor carriers, the trade-in value of boats, and equipment used for research and development. It specifies conditions for farm equipment exemptions based on annual gross sales and includes provisions for record-keeping and certification of eligibility for exemptions. Additionally, the bill exempts certain telecommunications services, winter storage of boats, jewelry display products, interstate toll-free calls for banks, mobile homes, materials for reconstructing manufacturing facilities, floral product processing supplies, horse food products, non-motorized recreational vehicles sold to nonresidents, and fire safety systems. The bill also introduces exemptions for renewable energy products, dietary supplements on prescriptions, human blood, agricultural products, diesel emission control technology, feed for commercial farming animals, alcoholic beverages for certain licensees, seeds and plants for food growth, feminine hygiene products, breast pump supplies, and the trade-in value of motorcycles. It maintains the exemption for aircraft and aircraft parts and clarifies the conditions for returned property exemptions. The bill is set to take effect upon passage.

Statutes affected:
2068: 44-18-30