Exempts new or used bicycles from sale and use tax.
Impact
The impact of HB 7674 on state laws is primarily focused on the sales and use tax code, specifically Section 44-18-30. By exempting bicycles, the bill alters the previously established tax structures without implementing new taxes elsewhere to offset this loss in revenue. This exemption aligns with broader initiatives to enhance active transportation options and reduce reliance on motor vehicles. As such, it may contribute to improved public health outcomes and further promote the usage of bicycles for commuting and leisure activities.
Summary
House Bill 7674 proposes an amendment to the Rhode Island General Laws that would exempt new and used bicycles from sales and use taxes. This legislative act aims to encourage more individuals to purchase bicycles, promoting their use for transportation and recreation, particularly in light of growing concerns regarding environmental sustainability and healthy living. By removing the tax burden associated with these purchases, the bill seeks to make cycling more financially accessible for Rhode Islanders of all ages.
Contention
Debates surrounding the bill may arise from concerns over the fiscal implications of removing tax revenue associated with bicycle sales. Opponents might argue that this change could have adverse effects on overall state funding for public services, particularly if the revenue from such taxes constitutes a significant portion of the budget. Supporters, however, are likely to counter that the health and environmental benefits derived from increased cycling would ultimately justify the tax exemption, considering possible reductions in healthcare costs and improvements in community quality of life.
Amends tax law on renewable energy products to exempt certain additional products from sales tax including battery energy storage system equipment, if supplied by a manufacturer of solar photovoltaic equipment.
Exempts battery energy storage system equipment, solar thermal collectors for commercial applications and solar storage tanks that are part of a commercial solar hot water system from the state sales tax.