The bill proposes amendments to Section 44-18-30 of the General Laws, which deals with exemptions from sales and use taxes in Rhode Island. It introduces new legal language, including a revised title for the section and specific definitions for terms such as "newspaper," "returnable containers," and "consumed." The bill outlines a range of exemptions, including sales beyond the state's power to tax, newspapers, school meals, containers, charitable organizations, gasoline, and purchases for manufacturing. It also details the exemption process for contractors working with exempt organizations and conditions for tax exemption on tangible personal property, software, and utilities used in manufacturing. The bill includes a deletion regarding burial garments and an insertion clarifying the tax exemption for items used in memorial services.

Furthermore, the bill specifies tax exemptions for various items and situations, such as food and food ingredients (with exceptions), medicines and medical equipment sold on prescription, motor vehicles sold to nonresidents, and special adaptations to vehicles for individuals with disabilities. It also exempts heating fuels, electricity, gas, manufacturing machinery, and equipment used in industrial plants. The bill reinstates an unlimited exemption on sales of clothing and footwear upon the passage of federal law authorizing states to require remote sellers to collect and remit sales and use taxes. Additionally, the bill exempts water for domestic use, religious scriptures, boats sold to nonresidents, youth activities equipment, farm equipment, compressed air, flags, vehicles sold to certain veterans, textbooks, and items used in hazardous waste recycling. It also includes exemptions for coins, farm structure construction materials, telecommunications services, boats for winter storage or repair, jewelry display products, interstate toll-free calls, mobile homes, disaster reconstruction materials, floral processing supplies, horse food products, non-motorized recreational vehicles, and fire safety systems. The bill also exempts new or used aircraft and parts, renewable energy products, returned property, dietary supplements sold on prescriptions, human blood, agricultural products, diesel emission control technology, feed for animals used in commercial farming, alcoholic beverages sold by a Class A licensee, seeds and plants for food growth, feminine hygiene products, breast pump supplies, and the trade-in value of motorcycles. The act would take effect upon passage.

Statutes affected:
2165: 44-18-30