The bill amends Section 44-18-7.1 of the General Laws in Chapter 44-18, focusing on sales and use tax liability and computation. It introduces new definitions for terms related to alcoholic beverages, specifically expanding the definition of "alcoholic beverages" to include "beer and malt beverages." The bill exempts the sale of beer and malt beverages at retail from sales and use tax.

Additionally, the bill clarifies the taxability of various items, including food, drugs, and medical equipment, ensuring alignment with the streamlined sales and use tax agreement. It specifies exemptions for certain sales, such as newspapers, school meals, and items sold by charitable organizations. The bill also proposes several tax exemptions for medical supplies, funeral services, and equipment for individuals with disabilities, including prescription drugs and durable medical equipment.

Furthermore, it establishes a structured exemption system for commercial farming based on annual gross sales and introduces exemptions for feminine hygiene products. The bill emphasizes the importance of maintaining records for sales to nonresidents and includes provisions for the tax administrator to require documentation for substantiating exemptions. The act is set to take effect immediately upon passage.

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