This bill amends Section 44-18-30 of the General Laws to provide exemptions from sales and use tax for various items. The exemptions include food and food ingredients, medicines and medical equipment, prosthetic devices and mobility enhancing equipment, burial garments sold by funeral directors, motor vehicles sold to nonresidents, sales in public buildings by blind people, air and water pollution control facilities, rental charges for living quarters or accommodations at camps and educational institutions, and motor vehicles and adaptive equipment for persons with disabilities.

Additionally, the bill adds exemptions for the sale of special adaptations and component parts for wheelchair accessible taxicabs and public motor vehicles, the sale and use of heating fuels, electricity, and gas, the sale and use of manufacturing machinery and equipment, the trade-in value of motor vehicles, precious metal bullion, commercial vessels, commercial fishing vessels, and clothing and footwear. The exemptions for clothing and footwear are limited to items with a sales price of up to $250 per item, except for certain athletic or protective items. The unlimited exemption on sales of clothing and footwear will take effect when the state requires remote sellers to collect and remit sales and use taxes.

The bill also adds exemptions for water for residential use, Bibles, boats sold to nonresidents who do not register the boat in the state, youth activities equipment sold by nonprofit organizations and schools, farm equipment used for commercial farming, compressed air, flags, motor vehicles and adaptive equipment for certain veterans, textbooks, tangible personal property and supplies used in on-site hazardous waste recycling, promotional and product literature of boat manufacturers shipped out of state, food items paid for with food stamps, transportation charges for motor carriers, trade-in value of boats, equipment used for research and development, and coins.

Statutes affected:
5627: 44-18-30