The bill proposes amendments to Section 44-18-7.1 of the General Laws in Chapter 44-18, concerning "Sales and Use Taxes Liability and Computation," to provide additional definitions and clarifications for terms related to the streamlined sales and use tax agreement. It expands the definition of "alcoholic beverages" to include beer and malt beverages, details what constitutes a "bundled transaction," and clarifies terms such as "distinct and identifiable products," "protective equipment," "computer software," "delivered electronically," "prewritten computer software," and "over-the-counter drug." The bill also specifies the treatment of vendor-hosted prewritten computer software and outlines the criteria for determining if taxable products are de minimis in a bundled transaction.

Furthermore, the bill defines "grooming and hygiene products," "prescription," "delivery charges," "direct mail," "durable medical equipment," "food and food ingredients," "prepared food," "candy," "soft drinks," "dietary supplements," and various lodging-related terms. It also includes definitions for "model 1 seller," "model 2 seller," and "model 3 seller," as well as terms related to digital products and telecommunications services. The bill provides detailed definitions for various telecommunications services, modifies the sales tax base or exemptions, and outlines specific tax exemptions, including those for newspapers, school meals, containers, and sales to charitable, educational, and religious organizations. It also specifies tax exemptions for certain entities, gasoline and airplane fuels, manufacturing purchases, food and food ingredients, medicines and drugs, durable medical equipment, prosthetic devices, burial items, and motor vehicles sold to nonresidents. The bill includes insertions and deletions to update the current law, but the specific changes are not detailed in the provided text.

Statutes affected:
2856: 44-18-7.1, 44-18-30