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 manufacturing contexts. 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 new exemptions for the trade-in value of pickup trucks under 8,100 pounds used for personal purposes, and it clarifies existing exemptions for specially adapted motor vehicles. Other exemptions include those for heating fuels, electricity, gas, and various goods related to agriculture, education, and health. The bill maintains the exemption for clothing and footwear sales, with a cap of $250 per item, and outlines specific conditions for other exemptions, such as for food items and medical equipment. Overall, the bill aims to streamline and enhance the existing sales and use tax exemption framework in the state, with immediate implementation upon passage.

Statutes affected:
99: 44-18-30