The bill amends Section 44-18-30 of the General Laws in Chapter 44-18, titled "Sales and Use Taxes — Liability and Computation," to clarify and expand exemptions from sales and use taxes in Rhode Island. Key insertions include a new title for the section, "44-18-30. Gross receipts exempt from sales and use taxes," along with detailed definitions for terms such as "newspaper," "returnable containers," and "consumed" in the context of manufacturing. The bill outlines various exemptions, including those for newspapers, school meals, charitable organizations, gasoline, and manufacturing-related purchases. It also specifies the tax exemption process for contractors working with exempt organizations and conditions under which certain tangible personal property and utilities used in manufacturing are exempt.

Additionally, the bill introduces a significant new exemption for the trade-in value of pickup trucks weighing 14,000 lbs. or less, which will not be subject to sales and use tax. It further clarifies existing exemptions for items such as renewable energy products, feminine hygiene products, and dietary supplements sold on prescriptions. The act aims to ease the tax burden on consumers and businesses by providing a comprehensive list of exempt items and specifying conditions for these exemptions. The bill is set to take effect upon passage, enhancing the clarity and applicability of sales tax exemptions in the state.

Statutes affected:
31: 44-18-30