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 the conditions under which certain tangible personal property and utilities used in manufacturing are exempt.

Additionally, the bill introduces new exemptions for specific items, such as pickup trucks under 6,000 pounds used exclusively for personal use, and clarifies existing exemptions for clothing and footwear, effective October 1, 2012, with a price cap of $250 per item. The bill also reinstates unlimited exemptions on clothing and footwear sales contingent upon federal legislation. Other exemptions include food items, medicines, and various agricultural products, as well as provisions for tax administrators to require record-keeping for substantiating exemptions. Overall, the bill aims to support specific industries and consumer needs by clarifying and expanding tax exemptions.

Statutes affected:
95: 44-18-30