This bill amends Section 44-18-30 of the General Laws to provide exemptions from sales and use tax for various items. The exemptions include sales and uses beyond the constitutional power of the state, newspapers, school meals, containers, charitable, educational, and religious organizations, gasoline, and purchases for manufacturing purposes. The bill also provides definitions for certain terms and clarifies that the exemption for charitable, educational, and religious organizations applies to tangible personal property purchased by specific institutions. Contractors working on projects for exempt agencies, institutions, or organizations are also allowed to purchase materials and supplies without paying sales or use tax, as long as they provide certificates of exemption and maintain records.

This bill adds several new exemptions to the sales and use tax in Rhode Island. The exemptions include farm structure construction materials, telecommunications carrier access service, boats or vessels brought into the state for winter storage, jewelry display products, boats or vessels generally, banks and regulated investment companies interstate toll-free calls, mobile and manufactured homes, manufacturing business reconstruction materials, tangible personal property and supplies used in the processing or preparation of floral products and floral arrangements, horse food products, non-motorized recreational vehicles sold to nonresidents, and sprinkler and fire alarm systems in existing buildings. The bill also includes specific conditions and definitions for each exemption. For example, the exemption for farm structure construction materials applies to lumber, hardware, and other materials used in the new construction of farm structures, including production facilities such as farrowing sheds, barns, and silos. The exemption for boats or vessels brought into the state for winter storage applies to the use of the boat or vessel exclusively for delivery, storage, maintenance, repair, or sale.

Statutes affected:
2051: 44-18-30