This bill amends Section 44-18-30 of the General Laws, introducing a new section that exempts various items from state sales and use taxes. Notable exemptions include sales to non-profit organizations, gasoline and airplane fuels, items purchased for manufacturing, and food and food ingredients with specific exclusions. The bill also exempts prescription medicines, drugs, durable medical equipment, funeral-related items, motor vehicles sold to nonresidents, and sales by blind people in public buildings. It provides a use tax credit for specially adapted motor vehicles and exempts heating fuels, electricity, gas, and manufacturing machinery and equipment used in industrial plants. A significant change is the increase in the exemption limit for clothing and footwear sales from $250 to $500 per item starting July 1, 2024.

Further, the bill details additional tax exemptions for items such as water for residential use, Bibles, boats sold to nonresidents, youth activities equipment, farm equipment, U.S. and state flags, motor vehicles for certain veterans, textbooks, and tangible personal property used in on-site hazardous waste recycling. It also exempts promotional materials shipped outside Rhode Island, food items paid for by food stamps, transportation charges by motor carriers, and equipment used for research and development. The bill includes exemptions for telecommunications services between companies, boats or vessels for winter storage or repair, jewelry display products, mobile and manufactured homes, materials for reconstructing manufacturing facilities, and fire safety equipment. It also exempts renewable energy products, dietary supplements sold on prescriptions, human blood, agricultural products, diesel emission control technology, feed for commercial farming, seeds and plants for growing food (excluding marijuana), and the trade-in value of motorcycles. The act is set to take effect upon passage.

Statutes affected:
2358: 44-18-30