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, "Gross receipts exempt from sales and use taxes," and 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, and specific food items, while also detailing the tax exemption process for contractors working with exempt organizations. Notably, it introduces a new definition for "automobile" to include pickup trucks under 8,800 pounds used exclusively for personal use, and specifies that the trade-in value exemption applies to this definition.

Additionally, the bill modifies existing exemptions for clothing and footwear, establishing a limit of $250 per item for the exemption effective October 1, 2012, while excluding certain clothing accessories and special use clothing. It also reinstates an unlimited exemption contingent upon federal law changes regarding remote seller tax collection. Other exemptions include those for heating fuels, electricity, gas, and various agricultural and manufacturing-related items. The bill aims to provide clarity and expand tax relief measures for a wide range of goods and services, with immediate implementation upon passage.