This bill introduces a range of exemptions from sales and use taxes in Rhode Island. It exempts gross receipts from the sale and storage, use, or other consumption of tangible personal property that the state is constitutionally prohibited from taxing, as well as items such as newspapers, school meals, containers, and items sold to charitable, educational, and religious organizations. The bill also exempts certain fuels, items purchased for manufacturing, food and food ingredients, medicines, medical equipment, burial-related items, vehicles sold to nonresidents, and items sold by blind people in public buildings. Additionally, it exempts special adaptations for wheelchair-accessible vehicles, heating fuels, electricity, gas, precious metal bullion, and sales to commercial vessels.

Furthermore, the bill exempts water for residential use, Bibles, boats sold to nonresidents, youth activities equipment, farm equipment, compressed air, flags, vehicles for certain veterans, textbooks, hazardous waste recycling supplies, food items paid with food stamps, transportation charges, trade-in value of boats, research and development equipment, coins, farm structure materials, telecommunications service, jewelry display products, mobile homes, floral processing supplies, horse food, non-motorized recreational vehicles, and fire safety systems. It also exempts machinery and equipment used to provide broadband communications service, including a wide array of related equipment, with the definition of "broadband communications service" aligning with the Internet Tax Freedom Act and state law. The bill is set to take effect on July 1, 2024, and includes clarifications on the legislative intent regarding the exemptions.

Statutes affected:
7256: 44-18-30