The bill amends Section 44-18-30 of the General Laws, adding a new title "44-18-30. Gross receipts exempt from sales and use taxes," and specifies various exemptions from sales and use taxes in the state. It includes detailed definitions for terms such as "newspaper," "returnable containers," and "consumed" in the context of manufacturing, and outlines the tax exemption process for contractors working with exempt organizations. The bill exempts sales beyond the state's constitutional power to tax, newspapers, school meals, containers, charitable, educational, and religious organizations, gasoline, and purchases for manufacturing purposes. It also exempts food and food ingredients with certain exclusions, medicines, drugs, and durable medical equipment sold on prescription, prosthetic devices, mobility enhancing equipment, sales of motor vehicles to nonresidents, sales in public buildings by blind people, air and water pollution control facilities, rentals at camps or retreat houses operated by certain organizations, living quarters in licensed institutions, educational institutions, and motor vehicles and adaptive equipment for persons with disabilities.

The bill further specifies exemptions for special adaptations to vehicles for individuals with disabilities, including a use tax credit for "specially adapted motor vehicles," heating fuels, electricity, gas, and manufacturing machinery and equipment used in industrial plants. It also exempts the trade-in value of motor vehicles, precious metal bullion transactions, commercial vessels over fifty tons, commercial fishing vessels over five net tons, clothing and footwear sales up to $250 per item, and outlines conditions for reinstating unlimited exemptions on clothing and footwear if federal law changes. Additionally, the bill exempts water for domestic use, sales of boats to nonresidents, youth activities equipment, farm equipment, U.S., Rhode Island, or POW-MIA flags, motor vehicles and adaptive equipment to certain veterans, textbooks, tangible personal property used in on-site hazardous waste recycling, promotional and product literature of boat manufacturers, food items paid for by food stamps, transportation charges by motor carriers, the trade-in value of boats, equipment used for research and development, the sale of coins, materials used in the construction of farm structures, telecommunications services, boats or vessels for winter storage, maintenance, repair, or sale, jewelry display products, interstate toll-free calls, mobile and manufactured homes, materials used in the reconstruction of manufacturing business facilities, tangible personal property used in the preparation of floral products, horse food products, non-motorized recreational vehicles sold to nonresidents, and sprinkler and fire alarm systems installed in existing buildings. A new exemption is introduced for firearm safety equipment, including gun lock boxes, gun safes, barrel locks, trigger locks, safety training manuals or electronic publications, and any other related products designed to ensure the safe handling or storage of a firearm. The bill aims to promote responsible gun ownership and safety by making these items tax-exempt, effective upon passage.

Statutes affected:
2315: 44-18-30