The bill proposes amendments to Section 44-18-30 of the General Laws, which governs sales and use taxes, by adding new exemptions and clarifying existing ones. It specifies that certain items such as manufacturing equipment, clothing and footwear (with a cap of $250 per item), and sales to the state and its subdivisions are exempt from sales tax. The bill also defines terms related to these exemptions, such as "newspaper," "manufacturing," and "consumed," and sets conditions for contractors working with exempt organizations to purchase materials tax-free. Notably, the bill includes an insertion that expands the trade-in value exemption for motor vehicles to include pickup trucks with a gross weight of 14,000 pounds or less.

Furthermore, the bill exempts various other items from sales tax, including water for residential use, Bibles from nonprofit religious organizations, boats sold to nonresidents, and sales of youth activities equipment by nonprofit organizations. It also provides exemptions for farm equipment, defining "commercial farming" and establishing exemption levels based on annual gross sales. The bill exempts sales of coins, construction materials for farm structures, and telecommunications services, among others. Additionally, it includes provisions for the exemption of sales tax on sprinkler and fire alarm systems in existing buildings and outlines requirements for dealers and nonresidents regarding the sale and registration of non-motorized recreational vehicles. The bill also adds exemptions for renewable energy products, dietary supplements on prescriptions, human blood, and the trade-in value of motorcycles, with the act taking effect upon passage.

Statutes affected:
7488: 44-18-30