The bill amends the General Laws regarding sales and use taxes, providing detailed definitions and clarifications for various terms such as "alcoholic beverages," "bundled transaction," "grooming and hygiene products," "prescription," "delivery charges," "direct mail," "durable medical equipment," and categories of food and beverages. It also defines seller types based on their sales and use tax functions, including Model 1 Seller, Model 2 Seller, and Model 3 Seller, and provides definitions for digital products and telecommunications services. The bill aims to update and clarify the tax code, particularly in relation to the streamlined sales and use tax agreement and current practices.

The bill also outlines numerous exemptions from sales and use tax for specific items and services, such as gasoline, airplane fuels, materials for manufacturing, food ingredients, prescribed medicines, durable medical equipment, and motor vehicles sold to nonresidents. It specifies the tax rate for nonresidents purchasing motor vehicles and provides exemptions for various other items including precious metal bullion, commercial vessels, clothing and footwear, water for residential use, and farm equipment. Additionally, the bill proposes to exempt breast pump collection and storage supplies from sales and use tax, and it addresses the trade-in value of motorcycles and the exemption of beer and malt beverages at retail from sales and use tax. The act would take effect upon passage, and while it includes insertions and deletions to the current law, the specific legal language changes are not detailed in the summary.

Statutes affected:
7277: 44-18-7.1, 44-18-30