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 power to tax, newspapers, school meals, containers, charitable organizations, gasoline, and purchases for manufacturing. It specifies the tax exemption process for contractors with exempt organizations and conditions for tax-exempt tangible personal property, software, and utilities used in manufacturing. The bill also exempts various items such as food ingredients, medicines, drugs, durable medical equipment, prosthetic devices, and mobility enhancing equipment sold on prescription, as well as motor vehicles and adaptive equipment for persons with disabilities, requiring a physician's affidavit.

The bill further outlines exemptions for heating fuels, electricity, gas, manufacturing machinery, and equipment. It extends the trade-in value exemption of motor vehicles to pickup trucks weighing less than 14,000 pounds and includes exemptions for precious metal bullion, commercial vessels, clothing, and footwear. Additionally, the bill exempts water for residential use, Bibles, boats sold to nonresidents, youth activities equipment, farm equipment, compressed air, flags, and motor vehicles sold to certain veterans. It also exempts textbooks, hazardous waste recycling equipment, promotional literature, food items paid for by food stamps, transportation charges, trade-in value of boats, and research and development equipment. The bill includes insertions and deletions of legal language, with insertions such as exemptions for renewable energy products and deletions like the exemption for materials fabricated into mounting racks for solar collectors. The bill is effective upon passage and includes a provision exempting the trade-in value of pickup trucks under 14,000 pounds from sales and use taxes.

Statutes affected:
7488: 44-18-30