The bill amends Section 44-18-7.1 of the General Laws concerning sales and use taxes, introducing new definitions and clarifications to enhance the existing legal framework. Key insertions include an expanded definition of "alcoholic beverages" to explicitly encompass beer and malt beverages, as well as a detailed explanation of "bundled transactions," which refers to the retail sale of multiple distinct products for a single non-itemized price. The bill also defines terms related to these transactions, such as "distinct and identifiable products" and "de minimis" thresholds for taxable products within bundled sales. Furthermore, it introduces definitions for various categories of items, including "grooming and hygiene products," "durable medical equipment," and "specified digital products," aiming to align the sales and use tax law with current practices and the streamlined sales and use tax agreement.

Additionally, the bill outlines specific exemptions from sales and use tax, including provisions for nonprofit organizations, educational institutions, and certain goods such as food, medicines, and durable medical equipment. Notably, it removes the sales tax exemption for beer and malt beverages for Class A licensees while introducing new exemptions for breast pump collection and storage supplies when sold as part of a pre-packaged kit. The bill also clarifies the treatment of trade-in values for motorcycles, ensuring that sales tax does not apply to the trade-in allowance. Overall, the amendments aim to modernize the tax code, providing clarity and specificity to various tax-related terms and exemptions.

Statutes affected:
94: 44-18-7.1, 44-18-30