The bill amends Section 44-18-30 of the General Laws, providing detailed exemptions from sales and use taxes in the state. It introduces a new title for the section and defines terms such as "newspaper," "returnable containers," and "consumed." The bill exempts sales beyond the state's constitutional power to tax, newspapers, school meals, containers, charitable, educational, and religious organizations, gasoline, and purchases for manufacturing purposes. It also details the tax exemption process for contractors working with exempt organizations and conditions for the exemption of tangible personal property, software, and utilities used in manufacturing. The bill further exempts food and food ingredients with specific exclusions, medicines, drugs, and durable medical equipment sold on prescription, prosthetic devices, mobility enhancing equipment, sales of motor vehicles to nonresidents, sales in public buildings by blind people, air and water pollution control facilities, rentals at camps or retreat houses operated by certain organizations, living quarters in licensed institutions, educational institutions, and motor vehicles and adaptive equipment for persons with disabilities.

The bill also specifies exemptions for special adaptations to vehicles for individuals with disabilities, including a use tax credit for "specially adapted motor vehicles." It exempts heating fuels, electricity, gas, and manufacturing machinery and equipment used in industrial plants. The bill outlines exemptions for the trade-in value of motor vehicles, precious metal bullion transactions, commercial vessels, commercial fishing vessels, clothing and footwear sales, and if a federal law is passed, the unlimited exemption on clothing and footwear will be reinstated as it was before October 1, 2012. New insertions include exemptions for water for domestic use, the sale of boats to nonresidents, youth activities equipment sold by nonprofit organizations or schools, farm equipment used for commercial farming, U.S., Rhode Island, or POW-MIA flags, motor vehicles and adaptive equipment to certain veterans, textbooks, tangible personal property used in on-site hazardous waste recycling, promotional and product literature of boat manufacturers, food items paid for by food stamps, transportation charges by motor carriers, the trade-in value of boats, equipment used for research and development, the sale of coins, and the value of total loss received from an insurance claim or repurchase by the manufacturer for motorcycles. The bill takes effect upon passage and aims to clarify tax-exempt items and situations, potentially reducing the tax burden on individuals and businesses. No deletions from current law are mentioned in the provided text.

Statutes affected:
2134: 44-18-30