The bill amends Chapter 44-18 of the General Laws regarding sales and use taxes by introducing a new section, 44-18-41, which prohibits the collection of sales tax on core charges and refundable deposits related to batteries and motor vehicle equipment, parts, or components. Specifically, it states that no sales tax shall be collected on these charges. Any refundable deposit for a battery or any motor vehicle equipment, part, or component collected by a retailer must be held in trust for the state in accordance with existing law.

Additionally, the bill mandates that the division of taxation shall promulgate rules and regulations to implement the provisions of this section. The division of taxation is also required to issue a written notice to all retailers of batteries and motor vehicle equipment and parts, informing them that no sales tax shall be charged for refundable battery deposits and core charges on any motor vehicle equipment, part, or component. This notice must be posted in a conspicuous place on the retailer's premises. The act is set to take effect immediately upon passage.