The bill amends Section 44-18-30 of the General Laws in Chapter 44-18, which pertains to sales and use taxes, by introducing a new title for the section and maintaining a list of items that are exempt from these taxes. The exemptions cover a wide range of items and services, including sales beyond the state's constitutional power, newspapers, school meals, containers, sales to charitable, educational, and religious organizations, gasoline and airplane fuels, and items purchased for manufacturing purposes. It also defines terms such as "consumed" and "manufacturing," and outlines the tax exemption process for contractors working with exempt organizations.

Additionally, the bill specifies exemptions for food and food ingredients, medicines and drugs sold on prescription, durable medical equipment, prosthetic devices, mobility enhancing equipment, burial-related items, motor vehicles sold to nonresidents, and special adaptations for vehicles for persons with disabilities. It clarifies what does not qualify as food or drugs and details the conditions for motor vehicle sales to nonresidents. The bill also provides a use tax credit for specially adapted motor vehicles, exempts heating fuels, electricity, gas, manufacturing machinery and equipment, and includes provisions for exemptions that may change due to federal laws. It further outlines exemptions for boats sold to nonresidents, farm equipment, youth activities equipment, compressed air, flags, veterans, textbooks, hazardous waste recycling, promotional literature, food stamps, transportation charges, trade-in value of boats, research and development equipment, coins, construction materials for farm structures, telecommunications services, winter storage of boats, jewelry display products, interstate toll-free calls, disaster reconstruction, floral processing, horse food products, non-motorized recreational vehicles, sprinkler and fire alarm systems, and renewable energy products. The bill makes deletions and insertions in the legal language, such as changing "systems" to "equipment" and updating the exemption for solar storage tanks, and is set to take effect upon passage.

Statutes affected:
8032: 44-18-30