The bill amends Section 44-18-30 of the General Laws, introducing new exemptions from sales and use taxes in the state and providing specific definitions for terms such as "newspaper," "returnable containers," and "consumed." It 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. The bill also details the tax exemption process for contractors working with exempt organizations and conditions under which tangible personal property, software, and utilities used in manufacturing are exempt from taxation. Additionally, it 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, and various other items and services.

The bill further specifies exemptions for special adaptations to vehicles for individuals with disabilities, including a use tax credit for "specially adapted motor vehicles." It exempts heating fuels, electricity, gas, and manufacturing machinery and equipment used in industrial plants. The bill also provides exemptions for the trade-in value of motor vehicles, precious metal bullion transactions, commercial vessels, commercial fishing vessels, clothing and footwear sales, and if a federal law is passed, the unlimited exemption on clothing and footwear will be reinstated as it was before October 1, 2012. Additional exemptions include 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, and the sale of coins. The bill does not mention any deletions from the current law.

Statutes affected:
2961: 44-18-30