2023 -- H 5784
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LC001650
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S TATE OF RHODE IS LAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
____________
A N A C T
RELATING TO AGRICULTURE AND FORESTRY -- FORESTRY AND FOREST PRODUCT
OPERATIONS
Introduced By: Representatives Cotter, Edwards, Potter, Baginski, Speakman, Casimiro,
Kazarian, Chippendale, McNamara, and Kennedy
Date Introduced: February 22, 2023
Referred To: House Municipal Government & Housing
It is enacted by the General Assembly as follows:
SECTION 1. Title 2 of the General Laws entitled "AGRICULTURE AND FORESTRY" 1
is hereby amended by adding thereto the following chapter: 2
CHAPTER 28 3
FORESTRY AND FOREST PRODUCT OPERATIONS 4
2-28-1. Short title. 5
This chapter shall be known and may be cited as the "Forestry Parity Act." 6
2-28-2. Legislative findings. 7
The general assembly finds and declares: 8
(1) That maintaining forests is vital to maintain both biodiversity, and ecosystem services, 9
including carbon sequestration in the state; 10
(2) That forests are more likely to be maintained if they provide economic value; 11
(3) That providing for the economic viability of the forest products industry is an interest 12
of the state; 13
(4) That forest conservation is given the same status as farm and open space conservation 14
under the chapter 27 of title 44 ("taxation of farm, forest, and open space land"), but that elsewhere 15
in the general laws forestry, and the production of forest products, are not given the same benefits, 16
including protections from taxation, and protections as agriculture; and 17
(5) That it is in the interest of the state, in order to protect economic viability of forests and 18
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to provide for their conservation for the future benefit and enjoyment of the people of the state. 1
2-28-3. Purpose. 2
It is purpose of this chapter to provide parity of treatment, under the law, with farming and 3
agriculture operations to forestry and forest product operations. 4
2-28-4. Definitions. 5
When used in this chapter, the following words and phrases are construed as follows: 6
(1) “Forest-based business” shall have the same meaning as defined in § 2-27-2. 7
(2) “Forest land” shall have the same meaning as defined in § 2-27-2. 8
(3) “Forest management” shall have the same meaning as defined in § 2-27-2. 9
(4) “Forest product operations” means any and all trade occupations involving the 10
harvesting, production, maintaining, and sale of forest products originating in the state, including, 11
but not limited to: 12
(i) Arboriculture, logging, land clearing; and 13
(ii) Kiln drying, operations of firewood, saw milling, lumber, pallets, biochar, mulch, 14
compost, biomass, wood chips, saw dust, timbers, posts, beams, shingles, and artisan tree carvings, 15
seasonal greens and berries. 16
(5) “Forest property owner” means a person who owns “forest land” or leases “forest land” 17
for a period of five (5) years or more, which lease permits the conduct of some or all “forest product 18
operations” on the “forest land”. 19
(6) “Person” shall have the same meaning as defined in § 43-3-6. 20
2-28-5. Declaration of policies. 21
The general assembly finds and declares that it is the policy of the state to promote an 22
environment in which forest operations and forest-based businesses are safeguarded against 23
nuisance actions arising out of conflicts between forestry operations and urban and suburban land 24
uses, in a manner consistent with the provisions of chapter 23 of title 2 ("right to farm act"), and to 25
protect forest landowners with forest management plans from state administrative actions and 26
regulations above and beyond the restrictions on farms and agricultural operations on the same 27
subject. 28
2-28-6. Intentional and negligent actions. 29
The provisions of § 2-28-5 do not apply to forestry operations conducted in a malicious or 30
negligent manner, or to forestry operations conducted in violation of federal or state law. 31
SECTION 2. Chapter 31-1 of the General Laws entitled "Definitions and General Code 32
Provisions" is hereby amended by adding thereto the following section: 33
31-1-8.1. Forestry vehicle. 34
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“Forestry vehicle” means every vehicle which is designed for and used for forest product 1
operations purposes, as defined in § 2-28-4, and used by the owner of the vehicle or family 2
member(s) or employee(s) or designees of the owner, in the conduct of the owner’s forestry product 3
operations, which use shall include the delivery of forest products produced by the forester but shall 4
not include commercial hire for non-forestry product operation uses, including, but not limited to, 5
hauling of sand and gravel, snow plowing, other than directly on the vehicle owner’s forest land. 6
For an owner to qualify as having forestry purposes, the owner shall provide evidence that he or 7
she meets the requirements of § 44-18-30. 8
SECTION 3. Chapter 31-3 of the General Laws entitled "Registration of Vehicles" is 9
hereby amended by adding thereto the following section: 10
31-3-31.4. Registration of forestry vehicles. 11
(a) Forestry vehicles, as defined in § 31-1-8.1, equipped with rubber tires while being used 12
in forestry and operated on highways shall be registered on a form furnished by the administrator 13
of the division of motor vehicles and shall be assigned a special number plate with a suitable symbol 14
or letter indicating the usage of the forestry vehicle. 15
(b) The administrator of the division of motor vehicles shall promulgate rules and 16
regulations for the inspection of forestry vehicles. 17
(c) Forestry plates may be displayed on vehicles used in the delivery of forestry products 18
produced by the forester/forest product operator; however, forestry plates shall not be displayed on 19
vehicles used for delivery of products not produced from forest product operations. 20
(d) Any forestry vehicle, as defined in § 31-1-8.1, that is not required to be registered other 21
than pursuant to the provisions of § 31-1-8.1, and that is covered by a liability insurance policy 22
applicable to forest land and/or forest product operations, shall be deemed to satisfy the liability 23
insurance as required by § 31-3-3(c) if the liability policy provides liability coverage for operation 24
of the vehicle, in limits meeting or exceeding, the provisions of § 31-32-24. Documentation of such 25
insurance, including the name of the carrier, policy, number, and effective date, may be required 26
by the division of motor vehicles for the registration of said vehicle and for the renewal of such 27
registration. 28
SECTION 4. Section 42-64-5 of the General Laws in Chapter 42-64 entitled "Rhode Island 29
Commerce Corporation" is hereby amended to read as follows: 30
42-64-5. Purposes. 31
The Rhode Island commerce corporation is authorized, created, and established to be an 32
agency under the jurisdiction of the state’s lead agency for economic development, the executive 33
office of commerce, and to be the operating agency of the state to carry out the policies and 34
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procedure as established by the secretary, governor and the board of directors for the following 1
purposes: 2
(1) To promote and encourage the preservation, expansion, and sound development of new 3
and existing industry, business, commerce, agriculture, forestry, tourism, and recreational facilities 4
in the state, which will promote the economic development of the state and the general welfare of 5
its citizens; and 6
(2) With respect to real property other than federal land or land related to federal land, to 7
undertake any project, except a residential facility; and 8
(3) With respect to federal land or land related to federal land, to undertake any project, 9
except as those responsibilities are assigned to the Quonset Development Corporation; and 10
(4) To create an organization that is responsive to the needs and interests of businesses of 11
all sizes within the state of Rhode Island and to be structured to be customer centric to enhance 12
commerce in the state utilizing all available resources. 13
SECTION 5. Section 44-5-12.1 of the General Laws in Chapter 44-5 entitled "Levy and 14
Assessment of Local Taxes" is hereby amended to read as follows: 15
44-5-12.1. Assessment of tangible personal property. 16
(a) All tangible personal property subject to taxation shall be assessed for taxation based 17
on the original purchase price (new or used) including all costs such as freight and installation. 18
Assets will be classified and depreciated as defined in this section. 19
(b) The following classification and depreciation table shall be used in determining the 20
assessed value of tangible personal property. 21
State of Rhode Island Tangible Property Classification 22
Class I Class II Class III 23
Class of Assets Short Life Mid-Life Long Life 24
Age 1-5 yrs 6-12 yrs 13+ yrs 25
1 95 95 95 26
2 80 90 90 27
3 60 80 85 28
4 30 70 80 29
5 20 60 75 30
6 20 50 70 31
7 20 40 65 32
8 20 30 60 33
9 20 30 55 34
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10 20 30 50 1
11 20 30 45 2
12 20 30 40 3
13 20 30 35 4
14 20 30 30 5
15+ 20 30 30 6
Assets Shall Not be Trended 7
(c) Assets shall be classified on an annual basis by the Rhode Island Association of 8
Assessing Officers’ Personal Property Committee based on the following table: 9
INDUSTRY GROUP IN YEARS CLASS 10
Agriculture and forestry machinery and equipment II 11
Aircraft and all helicopters II 12
Amusement and theme parks II 13
Apparel and fabricated textile manufacturing II 14
Automobile repair shops II 15
Bakeries and confectionery production II 16
Barber and beauty shops II 17
Billboards III 18
Brewery equipment not used directly in manufacturing II 19
Cable television, headend facilities: II 20
Microwave systems II 21
Program origination II 22
Service and test II 23
Subscriber connection and distribution II 24
Canneries and frozen food production II 25
Cement processing III 26
Chemical and allied production II 27
Clay products processing III 28
Cold storage and ice-making equipment III 29
Cold storage warehouse equipment II 30
Computers, personal computers (PC), laptops, tablets, cellphones, 31
mainframe/servers, peripherals, keyboard, mouse I 32
Condiments, processing II 33
Construction equipment, general construction, backhoes, 34
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forklifts, loaders, cranes, unregistered vehicles II 1
Dairy products processing II 2
Data handling equipment, except computers II 3
printers, copiers, bridges, routers and gateways II 4
Distilling II 5
Electrical equipment not used in manufacturing II 6
Electronic equipment II 7
Fabricated metal products/special tools II 8
Fishing equipment, excluding boats and barges, lines, nets I 9
Food and beverage production II 10
Fur processing II 11
Gas distribution, total distribution equipment III 12
Glass and glass products/special tools II 13
Grain and grain mill products processing III 14
Gypsum products III 15
Hand tools II 16
Hospital furnishings and equipment II 17
Hotel and motel furnishings and equipment II 18
Jewelry products and pens II 19
Knitwear and knit products, ex, work uniforms I 20
Laundry equipment II 21
Leather and leather products II 22
Logging, timber cutting II 23
Marine construction II 24
Meatpacking II 25
Medical and dental supply production II 26
Metalworking machinery processing II 27
Mining and quarrying II 28
Motion picture and television production II 29
Motor vehicle and parts/special tools II 30
Office furniture and equipment II 31
Optical lenses and instrument processing II 32
Paints and varnishes I 33
Petroleum refining III 34
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pipeline transportation III 1
Plastics manufacturing I/II 2
Plastic products processing/special tools II 3
Primary metals production, nonferrous and foundry products III 4
special tools III 5
Primary steel mill products III 6
Printing and publishing II 7
Professional and scientific instruments II 8
Radio and television, broadcasting II 9
Railroad transportation equipment II 10
locomotive II 11
Recreation and amusement II 12
Retail trades, fixtures and equipment II 13
Residential furniture II 14
Restaurant and bar equipment II 15
Restaurant equipment, fast foods II 16
Rubber products processing/special tools II 17
Sawmills, permanent/portable II 18
Service establishments II 19
Ship and boat building equipment/special tools II 20
Soft drink processing and bottling II 21
Stone products processing III 22
Telecommunications, local and interstate II 23
analog switching II 24
circuit, digital, analog, optic II 25
information/origination equipment I/II 26
smart phones I 27
metallic cable III 28
fiber cable, poles, conduit III 29
all other equipment II 30
Telecommunications, cellular 31
analog/digital switching II 32
radio frequency channel and control II 33
power equipment II 34
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antennae II 1
towers III 2
transmission equipment II 3
cellular phones I 4
Textile products, including finishing and dyeing II 5
yarn, thread and woven fabrics II 6
Theater equipment II 7
Utilities/power production III 8
generation, transmission, or distribution equipment III 9
Waste reduction and resource recovery II 10
Water transportation III 11
vessels, barges and tugs III 12
Water utilities III 13
Wharves, docks and piers III 14
Wholesale trade fixtures and equipment II 15
Wood products and furniture manufacturing II 16
(d) Any industry, group, or asset not enumerated in subsection (c) of this section, shall be 17
categorized as class II. 18
SECTION 6. Chapter 44-5 of the General Laws entitled "Levy and Assessment of Local 19
Taxes" is hereby amended by adding thereto the following section: 20
44-5-42.2. Exemption of certain forestry product operations property. 21
(a) All forestry product operations machinery, including motor vehicles with forestry 22
registration plates, is exempt from taxation. 23
(b) Cities and towns may tax forestry product operations buildings at a rate that reflects the 24
actual costs incurred by the city or town in providing services to those buildings. 25
SECTION 7. Section 44-18-30 of the General Laws in Chapter 44-18 entitled "Sales and 26
Use Taxes — Liability and Computation" is hereby amended to read as follows: 27
44-18-30. Gross receipts exempt from sales and use taxes. 28
There are exempted from the taxes imposed by this chapter the following gross receipts: 29
(1) Sales and uses beyond constitutional power of state. From the sale and from the storage, 30
use, or other consumption in this state of tangible personal property the gross receipts from the sale 31
of which, or the storage, use, or other consumption of which, this state is prohibited from taxing 32
under the Constitution of the United States or under the constitution of this state. 33
(2) Newspapers. 34
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(i) From the sale and from the storage, use, or other consumption in this state of any 1
newspaper. 2
(ii) “Newspaper” means an unbound publication printed on newsprint that contains news, 3
editorial comment, opinions, features, advertising matter, and other matters of public interest. 4
(iii) “Newspaper” does not include a magazine, handbill, circular, flyer, sales catalog, or 5
similar item unless the item is printed for, and distributed as, a part of a newspaper. 6
(3) School meals. From the sale and from the storage, use, or other consumption in this 7
state of meals served by public, private, or parochial schools, school districts, colleges, universities, 8
student organizations, and parent-teacher associations to the students or teachers of a school, 9
college, or university whether the meals are served by the educational institutions or by a food 10
service or management entity under contract to the educational institutions. 11
(4) Containers. 12
(i) From the sale and from the storage, use, or other consumption in this state of: 13
(A) Non-returnable containers, including boxes, paper bags, and wrapping materials that 14
are biodegradable and all bags and wrapping materials utilized in the medical and healing arts, 15
when sold without the contents to persons who place the contents in the container and sell the 16
contents with the container. 17
(B) Containers when sold with the contents if the sale price of the contents is not required 18
to be included in the measure of the taxes imposed by this chapter. 19
(C) Returnable containers when sold with the contents in connection with a retail sale of 20
the contents or when resold for refilling. 21
(D) Keg and barrel containers, whether returnable or not, when sold to alcoholic beverage 22
producers who place the alcoholic beverages in the containers. 23
(ii) As used in this subdivision, the term “returnable containers” means containers of a kind 24
customarily returned by the buyer of the contents for reuse. All other containers are “non-returnable 25
containers.” 26
(5)(i) Charitable, educational, and religious organizations. From the sale to, as in defined 27
in this section, and from the storage, use, and other consumption in this state, or any other state of 28
the United States of America, of tangible personal property by hospitals not operated for a profit; 29
“educational institutions” as defined in subdivision (18) not operated for a profit; churches, 30
orphanages, and other institutions or organizations operated exclusively for religious or charitable 31
purposes; interest-free loan associations not operated for profit; nonprofit, organized sporting 32
leagues and associations and bands for boys and girls under the age of nineteen (19) years; the 33
following vocational student organizations that are state chapters of national vocational student 34
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organizations: Distributive Education Clubs of America (DECA); Future Business Leaders of 1
America, Phi Beta Lambda (FBLA/PBL); Future Farmers of America (FFA); Future Homemakers 2
of America/Home Economics Related Occupations (FHA/HERD); Vocational Industrial Clubs of 3
America (VICA); organized nonprofit golden age and senior citizens clubs for men and women; 4
and parent-teacher associations; and from the sale, storage, use, and other consumption in this state, 5
of and by the Industrial Foundation of Burrillville, a Rhode Island domestic nonprofit corporation. 6
(ii) In the case of contracts entered into with the federal government, its agencies, or 7
instrumentalities, this state, or any other state of the United States of America, its agencies, any 8
city, town, district, or other political subdivision of the states; hospitals not operated for profit; 9
educational institutions not operated for profit; churches, orphanages, and other institutions or 10
organizations operated exclusively for religious or charitable purposes, the contractor may purchase 11
such materials and supplies (materials and/or supplies are defined as those that are essential to the 12
project) that are to be utilized in the construction of the projects being performed under the contracts 13
without payment of the tax. 14
(iii) The contractor shall not charge any sales or use tax to any exempt agency, institution, 15
or organization but shall in that instance provide his or her suppliers with certificates in the form 16
as determined by the division of taxation showing the reason for exemption and the contractor’s 17
records must substantiate the claim for exemption by showing the disposition of all property so 18
purchased. If any property is then used for a nonexempt purpose, the contractor must pay the tax 19
on the property used. 20
(6) Gasoline. From the sale and from the storage, use, or other consumption in this state 21
of: (i) Gasoline and other products taxed under chapter 36 of title 31 and (ii) Fuels used for the 22
propulsion of airplanes. 23
(7) Purchase for manufacturing purposes. 24
(i) From the sale and from the storage, use, or other consumption in this state of computer 25
software, tangible personal property, electricity, natural gas, artificial gas, steam, refrigeration, and 26
water, when the property or service is purchased for the purpose of being manufactured into a 27
finished product for resale and becomes an ingredient, component, or integral part of the 28
manufactured, compounded, processed, assembled, or prepared product, or if the property or 29
service is consumed in the process of manufacturing for resale computer software, tangible personal 30
property, electricity, natural gas, artificial gas, steam, refrigeration, or water. 31
(ii) “Consumed” means destroyed, used up, or worn out to the degree or extent that the 32
property cannot be repaired, reconditioned, or rendered fit for further manufacturing use. 33
(iii) “Consumed” includes mere obsolescence. 34
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(iv) “Manufacturing” means and includes: manufacturing, compounding, processing, 1
assembling, preparing, or producing. 2
(v) “Process of manufacturing” means and includes all production operations performed in 3
the producing or processing room, shop, or plant, insofar as the operations are a part of and 4
connected with the manufacturing for resale of tangible personal property, electricity, natural gas, 5
artificial gas, steam, refrigeration, or water and all production operations performed insofar as the 6
operations are a part of and connected with the manufacturing for resale of computer software. 7
(vi) “Process of manufacturing” does not mean or include administration operations such 8
as general office operations, accounting, collection, or sales promotion, nor does it mean or include 9
distribution operations that occur subsequent to production operations, such as handling, storing, 10
selling, and transporting the manufactured products, even though the administration and 11
distribution operations are performed by, or in connection with, a manufacturing business. 12
(8) State and political subdivisions. From the sale to, and from the storage, use, or other 13
consumption by, this state, any city, town, district, or other political subdivision of this state. Every 14
redevelopment agency created pursuant to chapter 31 of title 45 is deemed to be a subdivision of 15
the municipality where it is located. 16
(9) Food and food ingredients. From the sale and storage, use, or other consumption in this 17
state of food and food ingredients as defined in § 44-18-7.1(l). 18
For the purposes of this exemption “food and food ingredients” shall not include candy, 19
soft drinks, dietary supplements, alcoholic beverages, tobacco, food sold through vending 20
machines, or prepared food, as those terms are defined in § 44-18-7.1, unless the prepared food is: 21
(i) Sold by a seller whose primary NAICS classification is manufacturing in sector 311, 22
except sub-sector 3118 (bakeries); 23
(ii) Sold in an unheated state by weight or volume as a single item; 24
(iii) Bakery items, including: bread, rolls, buns, biscuits, bagels, croissants, pastries, 25
donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, tortillas; and 26
is not sold with utensils provided by the seller, including: plates, knives, forks, spoons, 27
glasses, cups, napkins, or straws. 28
(10) Medicines, drugs, and durable medical equipment. From the sale and from the storage, 29
use, or other consumption in this state, of: 30
(i) “Drugs” as defined in § 44-18-7.1(h)(i), sold on prescriptions, medical oxygen, and 31
insulin whether or not sold on prescription. For purposes of this exemption drugs shall not include 32
over-the-counter drugs and grooming and hygiene products as defined in § 44-18-7.1(h)(iii). 33
(ii) Durable medical equipment as defined in § 44-18-7.1(k) for home use only, including, 34
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but not limited to: syringe infusers, ambulatory drug delivery pumps, hospital beds, convalescent 1
chairs, and chair lifts. Supplies used in connection with syringe infusers and ambulatory drug 2
delivery pumps that are sold on prescription to individuals to be used by them to dispense or 3
administer prescription drugs, and related ancillary dressings and supplies used to dispense or 4
administer prescription drugs, shall also be exempt from tax. 5
(11) Prosthetic devices and mobility enhancing equipment. From the sale and from the 6
storage, use, or other consumption in this state, of prosthetic devices as defined in § 44-18-7.1(t), 7
sold on prescription, including, but not limited to: artificial limbs, dentures, spectacles, eyeglasses, 8
and artificial eyes; artificial hearing devices and hearing aids, whether or not sold on prescription; 9
and mobility enhancing equipment as defined in § 44-18-7.1(p), including wheelchairs, crutches, 10
and canes. 11
(12) Coffins, caskets, urns, shrouds and burial garments. From the sale and from the 12
storage, use, or other consumption in this state of coffins, caskets, burial containers, urns, urn liners, 13
urn vaults, grave liners, grave vaults, burial tent setups, prayer cards, shrouds, and other burial 14
garments that are ordinarily sold by a funeral director as part of the business of funeral directing. 15
(13) Motor vehicles sold to nonresidents. 16
(i) From the sale, subsequent to June 30, 1958, of a motor vehicle to a bona fide nonresident 17
of this state who does not register the motor vehicle in this state, whether the sale or delivery of the 18
motor vehicle is made in this state or at the place of residence of the nonresident. A motor vehicle 19
sold to a bona fide nonresident whose state of residence does not allow a like exemption to its 20
nonresidents is not exempt from the tax imposed under § 44-18-20. In that event, the bona fide 21
nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate that would be imposed 22
in his or her state of residence not to exceed the rate that would have been imposed under § 44-18-23
20. Notwithstanding any other provisions of law, a licensed motor vehicle dealer shall add and 24
collect the tax required under this subdivision and remit the tax to the tax administrator under the 25
provisions of chapters 18 and 19 of this title. When a Rhode Island licensed, motor vehicle dealer 26
is required to add and collect the sales and use tax on the sale of a motor vehicle to a bona fide 27
nonresident as provided in this section, the dealer in computing the tax takes into consideration the 28
law of the state of the nonresident as it relates to the trade-in of motor vehicles. 29
(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 30
require any licensed motor vehicle dealer to keep records of sales to bona fide nonresidents as the 31
tax administrator deems reasonably necessary to substantiate the exemption provided in this 32
subdivision, including the affidavit of a licensed motor vehicle dealer that the purchaser of the 33
motor vehicle was the holder of, and had in his or her possession a valid out-of-state motor vehicle 34
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registration or a valid out-of-state driver’s license. 1
(iii) Any nonresident who registers a motor vehicle in this state within ninety (90) days of 2
the date of its sale to him or her is deemed to have purchased the motor vehicle for use, storage, or 3
other consumption in this state, and is subject to, and liable for, the use tax imposed under the 4
provisions of § 44-18-20. 5
(14) Sales in public buildings by blind people. From the sale and from the storage, use, or 6
other consumption in all public buildings in this state of all products or wares by any person 7
licensed under § 40-9-11.1. 8
(15) Air and water pollution control facilities. From the sale, storage, use, or other 9
consumption in this state of tangible personal property or supplies acquired for incorporation into 10
or used and consumed in the operation of a facility, the primary purpose of which is to aid in the 11
control of the pollution or contamination of the waters or air of the state, as defined in chapter 12 12
of title 46 and chapter 23 of title 23, respectively, and that has been certified as approved for that 13
purpose by the director of environmental management. The director of environmental management 14
may certify to a portion of the tangible personal property or supplies acquired for incorporation 15
into those facilities or used and consumed in the operation of those facilities to the extent that that 16
portion has as its primary purpose the control of the pollution or contamination of the waters or air 17
of this state. As used in this subdivision, “facility” means any land, facility, device, building, 18
machinery, or equipment. 19
(16) Camps. From the rental charged for living quarters, or sleeping, or housekeeping 20
accommodations at camps or retreat houses operated by religious, charitable, educational, or other 21
organizations and associations mentioned in subsection (5), or by privately owned and operated 22
summer camps for children. 23
(17) Certain institutions. From the rental charged for living or sleeping quarters in an 24
institution licensed by the state for the hospitalization, custodial, or nursing care of human beings. 25
(18) Educational institutions. From the rental charged by any educational institution for 26
living quarters, or sleeping, or housekeeping accommodations or other rooms or accommodations 27
to any student or teacher necessitated by attendance at an educational institution. “Educational 28
institution” as used in this section means an institution of learning not operated for profit that is 29
empowered to confer diplomas, educational, literary, or academic degrees; that has a regular 30
faculty, curriculum, and organized body of pupils or students in attendance throughout the usual 31
school year; that keeps and furnishes to students and others records required and accepted for 32
entrance to schools of secondary, collegiate, or graduate rank; and no part of the net earnings of 33
which inures to the benefit of any individual. 34
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(19) Motor vehicle and adaptive equipment for persons with disabilities. 1
(i) From the sale of: (A) Special adaptations; (B) The component parts of the special 2
adaptations; or (C) A specially adapted motor vehicle; provided that the owner furnishes to the tax 3
administrator an affidavit of a licensed physician to the effect that the specially adapted motor 4
vehicle is necessary to transport a family member with a disability or where the vehicle has been 5
specially adapted to meet the specific needs of the person with a disability. This exemption applies 6
to not more than one motor vehicle owned and registered for personal, noncommercial use. 7
(ii) For the purpose of this subsection the term “special adaptations” includes, but is not 8
limited to: wheelchair lifts, wheelchair carriers, wheelchair ramps, wheelchair securements, hand 9
controls, steering devices, extensions, relocations, and crossovers of operator controls, power-10
assisted controls, raised tops or dropped floors, raised entry doors, or alternative signaling devices 11
to auditory signals. 12
(iii) From the sale of: (a) Special adaptations, (b) The component parts of the special 13
adaptations, for a “wheelchair accessible taxicab” as defined in § 39-14-1, and/or a “wheelchair 14
accessible public motor vehicle” as defined in § 39-14.1-1. 15
(iv) For the purpose of this subdivision the exemption for a “specially adapted motor 16
vehicle” means a use tax credit not to exceed the amount of use tax that would otherwise be due on 17
the motor vehicle, exclusive of any adaptations. The use tax credit is equal to the cost of the special 18
adaptations, including installation. 19
(20) Heating fuels. From the sale and from the storage, use, or other consumption in this 20
state of every type of heating fuel. 21
(21) Electricity and gas. From the sale and from the storage, use, or other consumption in 22
this state of electricity and gas. 23
(22) Manufacturing machinery and equipment. 24
(i) From the sale and from the storage, use, or other consumption in this state of tools, dies, 25
molds, machinery, equipment (including replacement parts), and related items to the extent used in 26
an industrial plant in connection with the actual manufacture, conversion, or processing of tangible 27
personal property, or to the extent used in connection with the actual manufacture, conversion, or 28
processing of computer software as that term is utilized in industry numbers 7371, 7372, and 7373 29
in the standard industrial classification manual prepared by the Technical Committee on Industrial 30
Classification, Office of Statistical Standards, Executive Office of the President, United States 31
Bureau of the Budget, as revised from time to time, to be sold, or that machinery and equipment 32
used in the furnishing of power to an industrial manufacturing plant. For the purposes of this 33
subdivision, “industrial plant” means a factory at a fixed location primarily engaged in the 34
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manufacture, conversion, or processing of tangible personal property to be sold in the regular 1
course of business; 2
(ii) Machinery and equipment and related items are not deemed to be used in connection 3
with the actual manufacture, conversion, or processing of tangible personal property, or in 4
connection with the actual manufacture, conversion, or processing of computer software as that 5
term is utilized in industry numbers 7371, 7372, and 7373 in the standard industrial classification 6
manual prepared by the Technical Committee on Industrial Classification, Office of Statistical 7
Standards, Executive Office of the President, United States Bureau of the Budget, as revised from 8
time to time, to be sold to the extent the property is used in administration or distribution operations; 9
(iii) Machinery and equipment and related items used in connection with the actual 10
manufacture, conversion, or processing of any computer software or any tangible personal property 11
that is not to be sold and that would be exempt under subdivision (7) or this subdivision if purchased 12
from a vendor or machinery and equipment and related items used during any manufacturing, 13
converting, or processing function is exempt under this subdivision even if that operation, function, 14
or purpose is not an integral or essential part of a continuous production flow or manufacturing 15
process; 16
(iv) Where a portion of a group of portable or mobile machinery is used in connection with 17
the actual manufacture, conversion, or processing of computer software or tangible personal 18
property to be sold, as previously defined, that portion, if otherwise qualifying, is exempt under 19
this subdivision even though the machinery in that group is used interchangeably and not otherwise 20
identifiable as to use. 21
(23) Trade-in value of motor vehicles. From the sale and from the storage, use, or other 22
consumption in this state of so much of the purchase price paid for a new or used automobile as is 23
allocated for a trade-in allowance on the automobile of the buyer given in trade to the seller, or of 24
the proceeds applicable only to the automobile as are received from the manufacturer of 25
automobiles for the repurchase of the automobile whether the repurchase was voluntary or not 26
towards the purchase of a new or used automobile by the buyer. For the purpose of this subdivision, 27
the word “automobile” means a private passenger automobile not used for hire and does not refer 28
to any other type of motor vehicle. 29
(24) Precious metal bullion. 30
(i) From the sale and from the storage, use, or other consumption in this state of precious 31
metal bullion, substantially equivalent to a transaction in securities or commodities. 32
(ii) For purposes of this subdivision, “precious metal bullion” means any elementary 33
precious metal that has been put through a process of smelting or refining, including, but not limited 34
LC001650 - Page 16 of 29
to: gold, silver, platinum, rhodium, and chromium, and that is in a state or condition that its value 1
depends upon its content and not upon its form. 2
(iii) The term does not include fabricated precious metal that has been processed or 3
manufactured for some one or more specific and customary industrial, professional, or artistic uses. 4
(25) Commercial vessels. From sales made to a commercial ship, barge, or other vessel of 5
fifty (50) tons burden or over, primarily engaged in interstate or foreign commerce, and from the 6
repair, alteration, or conversion of the vessels, and from the sale of property purchased for the use 7
of the vessels including provisions, supplies, and material for the maintenance and/or repair of the 8
vessels. 9
(26) Commercial fishing vessels. From the sale and from the storage, use, or other 10
consumption in this state of vessels and other watercraft that are in excess of five (5) net tons and 11
that are used exclusively for “commercial fishing,” as defined in this subdivision, and from the 12
repair, alteration, or conversion of those vessels and other watercraft, and from the sale of property 13
purchased for the use of those vessels and other watercraft including provisions, supplies, and 14
material for the maintenance and/or repair of the vessels and other watercraft and the boats nets, 15
cables, tackle, and other fishing equipment appurtenant to or used in connection with the 16
commercial fishing of the vessels and other watercraft. “Commercial fishing” means taking or 17
attempting to take any fish, shellfish, crustacea, or bait species with the intent of disposing of it for 18
profit or by sale, barter, trade, or in commercial channels. The term does not include subsistence 19
fishing, i.e., the taking for personal use and not for sale or barter; or sport fishing; but shall include 20
vessels and other watercraft with a Rhode Island party and charter boat license issued by the 21
department of environmental management pursuant to § 20-2-27.1 that meet the following criteria: 22
(i) The operator must have a current United States Coast Guard (U.S.C.G.) license to carry 23
passengers for hire; (ii) U.S.C.G. vessel documentation in the coast wide fishery trade; (iii) 24
U.S.C.G. vessel documentation as to proof of Rhode Island home port status or a Rhode Island boat 25
registration to prove Rhode Island home port status; and (iv) The vessel must be used as a 26
commercial passenger carrying fishing vessel to carry passengers for fishing. The vessel must be 27
able to demonstrate that at least fifty percent (50%) of its annual gross income derives from charters 28
or provides documentation of a minimum of one hundred (100) charter trips annually; and (v) The 29
vessel must have a valid Rhode Island party and charter boat license. The tax administrator shall 30
implement the provisions of this subdivision by promulgating rules and regulations relating thereto. 31
(27) Clothing and footwear. From the sales of articles of clothing, including footwear, 32
intended to be worn or carried on or about the human body for sales prior to October 1, 2012. 33
Effective October 1, 2012, the exemption will apply to the sales of articles of clothing, including 34
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footwear, intended to be worn or carried on or about the human body up to two hundred and fifty 1
dollars ($250) of the sales price per item. For the purposes of this section, “clothing or footwear” 2
does not include clothing accessories or equipment or special clothing or footwear primarily 3
designed for athletic activity or protective use as these terms are defined in § 44-18-7.1(f). In 4
recognition of the work being performed by the streamlined sales and use tax governing board, 5
upon passage of any federal law that authorizes states to require remote sellers to collect and remit 6
sales and use taxes, this unlimited exemption will apply as it did prior to October 1, 2012. The 7
unlimited exemption on sales of clothing and footwear shall take effect on the date that the state 8
requires remote sellers to collect and remit sales and use taxes. 9
(28) Water for residential use. From the sale and from the storage, use, or other 10
consumption in this state of water furnished for domestic use by occupants of residential premises. 11
(29) Bibles. [Unconstitutional; see Ahlburn v. Clark, 728 A.2d 449 (R.I. 1999); see Notes 12
to Decisions.] From the sale and from the storage, use, or other consumption in the state of any 13
canonized scriptures of any tax-exempt nonprofit religious organization including, but not limited 14
to, the Old Testament and the New Testament versions. 15
(30) Boats. 16
(i) From the sale of a boat or vessel to a bona fide nonresident of this state who does not 17
register the boat or vessel in this state or document the boat or vessel with the United States 18
government at a home port within the state, whether the sale or delivery of the boat or vessel is 19
made in this state or elsewhere; provided, that the nonresident transports the boat within thirty (30) 20
days after delivery by the seller outside the state for use thereafter solely outside the state. 21
(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 22
require the seller of the boat or vessel to keep records of the sales to bona fide nonresidents as the 23
tax administrator deems reasonably necessary to substantiate the exemption provided in this 24
subdivision, including the affidavit of the seller that the buyer represented himself or herself to be 25
a bona fide nonresident of this state and of the buyer that he or she is a nonresident of this state. 26
(31) Youth activities equipment. From the sale, storage, use, or other consumption in this 27
state of items for not more than twenty dollars ($20.00) each by nonprofit Rhode Island 28
eleemosynary organizations, for the purposes of youth activities that the organization is formed to 29
sponsor and support; and by accredited elementary and secondary schools for the purposes of the 30
schools or of organized activities of the enrolled students. 31
(32) Farm equipment. From the sale and from the storage or use of machinery and 32
equipment used directly for commercial farming and agricultural production; including, but not 33
limited to: tractors, ploughs, harrows, spreaders, seeders, milking machines, silage conveyors, 34
LC001650 - Page 18 of 29
balers, bulk milk storage tanks, trucks with farm plates, mowers, combines, irrigation equipment, 1
greenhouses and greenhouse coverings, graders and packaging machines, tools and supplies and 2
other farming equipment, including replacement parts appurtenant to or used in connection with 3
commercial farming and tools and supplies used in the repair and maintenance of farming 4
equipment. “Commercial farming” means the keeping or boarding of five (5) or more horses or the 5
production within this state of agricultural products, including, but not limited to, field or orchard 6
crops, livestock, dairy, and poultry, or their products, where the keeping, boarding, or production 7
provides at least two thousand five hundred dollars ($2,500) in annual gross sales to the operator, 8
whether an individual, a group, a partnership, or a corporation for exemptions issued prior to July 9
1, 2002. For exemptions issued or renewed after July 1, 2002, there shall be two (2) levels. Level I 10
shall be based on proof of annual, gross sales from commercial farming of at least twenty-five 11
hundred dollars ($2,500) and shall be valid for purchases subject to the exemption provided in this 12
subdivision except for motor vehicles with an excise tax value of five thousand dollars ($5,000) or 13
greater. Level II shall be based on proof of annual gross sales from commercial farming of at least 14
ten thousand dollars ($10,000) or greater and shall be valid for purchases subject to the exemption 15
provided in this subdivision including motor vehicles with an excise tax value of five thousand 16
dollars ($5,000) or greater. For the initial issuance of the exemptions, proof of the requisite amount 17
of annual gross sales from commercial farming shall be required for the prior year; for any renewal 18
of an exemption granted in accordance with this subdivision at either level I or level II, proof of 19
gross annual sales from commercial farming at the requisite amount shall be required for each of 20
the prior two (2) years. Certificates of exemption issued or renewed after July 1, 2002, shall clearly 21
indicate the level of the exemption and be valid for four (4) years after the date of issue. This 22
exemption applies even if the same equipment is used for ancillary uses, or is temporarily used for 23
a non-farming or a non-agricultural purpose, but shall not apply to motor vehicles acquired after 24
July 1, 2002, unless the vehicle is a farm vehicle as defined pursuant to § 31-1-8 and is eligible for 25
registration displaying farm plates as provided for in § 31-3-31. 26
(33) Forestry product operations equipment. From the sale and from the storage or use of 27
machinery and equipment used directly for forest product operations engaged in commercial 28
production including, but not limited to: chainsaws, tree chippers, mulch grinders, chip screeners, 29
sawdust blowers, conveyors, power generators , firewood processors, log skidders, wood splitters, 30
disc cleaners, tumblers, shaving mills, loaders, forklifts, firewood kilns, pallet kilns, lumber kilns, 31
sawdust dryers, forwarders, sawmills, resaws, edgers, planers, debarkers, live log decks, green 32
chains, tractors, winches, tree harvesters, feller bunchers, log loaders, slashers, delimbers, grapples, 33
bucket trucks, tree cranes, stump grinders. “Forest product operations” shall have the same meaning 34
LC001650 - Page 19 of 29
as defined in § 2-28-4 and commercial production shall include operations that generate at least 1
five thousand dollars ($5,000) in annual gross sales by the forest property owner as defined in § 2-2
28-4, whether an individual, a group, a partnership, or a corporation. There shall be two (2) levels 3
of exemptions. Level I shall be based on proof of annual average, over three (3) consecutive years, 4
of gross sales of at least five thousand dollars ($5,000) but less than fifty thousand dollars ($50,000) 5
from forest product operations by the forest property owner or forest lessee and shall be valid for 6
purchases subject to the exemption provided in this subsection except for motor vehicles with a 7
value of five thousand dollars ($5,000) or greater. Level II shall be based on proof of annual gross 8
sales from forest product operations of at least fifty thousand dollars ($50,000) or greater and shall 9
be valid for all purchases subject to the exemption provided in this subsection including all forestry 10
plate motor vehicles registered pursuant to § 31-3-31.4. For the initial issuance of the exemptions, 11
proof of the requisite amount of annual gross sales from forest product operations shall be required 12
for the prior three (3) year average for level I or for two (2) prior years for level II. For any renewal 13
of an exemption granted in accordance with this subsection at either level I or level II, proof of 14
gross annual or average sales from forestry product operations at the requisite amount shall be 15
required for each of the prior two (2) years for level II, and for the average of the three (3) prior 16
years for level I certificates of exemption issued or renewed after July 1, 2023. Certificates shall 17
clearly indicate the level of the exemption and be valid for four (4) years after the date of issue. 18
This exemption applies even if the same equipment is used for ancillary uses, or is temporarily used 19
for a non-forestry or a non-forest products operation, but shall not apply to motor vehicles acquired 20
after July 1, 2023, unless the vehicle is a forestry vehicle as defined pursuant to § 31-1-8.1 and is 21
eligible for registration displaying forestry plates as provided for in § 31-3-31.4. 22
(33)(34) Compressed air. From the sale and from the storage, use, or other consumption 23
in the state of compressed air. 24
(34)(35) Flags. From the sale and from the storage, consumption, or other use in this state 25
of United States, Rhode Island or POW-MIA flags. 26
(35)(36) Motor vehicle and adaptive equipment to certain veterans. From the sale of a 27
motor vehicle and adaptive equipment to and for the use of a veteran with a service-connected loss 28
of or the loss of use of a leg, foot, hand, or arm, or any veteran who is a double amputee, whether 29
service connected or not. The motor vehicle must be purchased by and especially equipped for use 30
by the qualifying veteran. Certificate of exemption or refunds of taxes paid is granted under rules 31
or regulations that the tax administrator may prescribe. 32
(36)(37) Textbooks. From the sale and from the storage, use, or other consumption in this 33
state of textbooks by an “educational institution,” as defined in subsection (18) of this section, and 34
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any educational institution within the purview of § 16-63-9(4), and used textbooks by any purveyor. 1
(37)(38) Tangible personal property and supplies used in on-site hazardous waste 2
recycling, reuse, or treatment. From the sale, storage, use, or other consumption in this state of 3
tangible personal property or supplies used or consumed in the operation of equipment, the 4
exclusive function of which is the recycling, reuse, or recovery of materials (other than precious 5
metals, as defined in subdivision (24)(ii) of this section) from the treatment of “hazardous wastes,” 6
as defined in § 23-19.1-4, where the “hazardous wastes” are generated in Rhode Island solely by 7
the same taxpayer and where the personal property is located at, in, or adjacent to a generating 8
facility of the taxpayer in Rhode Island. The taxpayer shall procure an order from the director of 9
the department of environmental management certifying that the equipment and/or supplies as used 10
or consumed, qualify for the exemption under this subdivision. If any information relating to secret 11
processes or methods of manufacture, production, or treatment is disclosed to the department of 12
environmental management only to procure an order, and is a “trade secret” as defined in § 28-21-13
10(b), it is not open to public inspection or publicly disclosed unless disclosure is required under 14
chapter 21 of title 28 or chapter 24.4 of title 23. 15
(38)(39) Promotional and product literature of boat manufacturers. From the sale and from 16
the storage, use, or other consumption of promotional and product literature of boat manufacturers 17
shipped to points outside of Rhode Island that either: (i) Accompany the product that is sold; (ii) 18
Are shipped in bulk to out-of-state dealers for use in the sale of the product; or (iii) Are mailed to 19
customers at no charge. 20
(39)(40) Food items paid for by food stamps. From the sale and from the storage, use, or 21
other consumption in this state of eligible food items payment for which is properly made to the 22
retailer in the form of U.S. government food stamps issued in accordance with the Food Stamp Act 23
of 1977, 7 U.S.C. § 2011 et seq. 24
(40)(41) Transportation charges. From the sale or hiring of motor carriers as defined in § 25
39-12-2(12) to haul goods, when the contract or hiring cost is charged by a motor freight tariff filed 26
with the Rhode Island public utilities commission on the number of miles driven or by the number 27
of hours spent on the job. 28
(41)(42) Trade-in value of boats. From the sale and from the storage, use, or other 29
consumption in this state of so much of the purchase price paid for a new or used boat as is allocated 30
for a trade-in allowance on the boat of the buyer given in trade to the seller or of the proceeds 31
applicable only to the boat as are received from an insurance claim as a result of a stolen or damaged 32
boat, towards the purchase of a new or used boat by the buyer. 33
(42)(43) Equipment used for research and development. From the sale and from the 34
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storage, use, or other consumption of equipment to the extent used for research and development 1
purposes by a qualifying firm. For the purposes of this subsection, “qualifying firm” means a 2
business for which the use of research and development equipment is an integral part of its 3
operation and “equipment” means scientific equipment, computers, software, and related items. 4
(43)(44) Coins. From the sale and from the other consumption in this state of coins having 5
numismatic or investment value. 6
(44)(45) Farm structure construction materials. Lumber, hardware, and other materials 7
used in the new construction of farm structures, including production facilities such as, but not 8
limited to: farrowing sheds, free stall and stanchion barns, milking parlors, silos, poultry barns, 9
laying houses, fruit and vegetable storages, rooting cellars, propagation rooms, greenhouses, 10
packing rooms, machinery storage, seasonal farm worker housing, certified farm markets, bunker 11
and trench silos, feed storage sheds, and any other structures used in connection with commercial 12
farming. 13
(45)(46) Telecommunications carrier access service. Carrier access service or 14
telecommunications service when purchased by a telecommunications company from another 15
telecommunications company to facilitate the provision of telecommunications service. 16
(46)(47) Boats or vessels brought into the state exclusively for winter storage, maintenance, 17
repair, or sale. Notwithstanding the provisions of §§ 44-18-10, 44-18-11 and 44-18-20, the tax 18
imposed by § 44-18-20 is not applicable for the period commencing on the first day of October in 19
any year up to and including the 30th day of April next succeeding with respect to the use of any 20
boat or vessel within this state exclusively for purposes of: (i) Delivery of the vessel to a facility in 21
this state for storage, including dry storage and storage in water by means of apparatus preventing 22
ice damage to the hull, maintenance, or repair; (ii) The actual process of storage, maintenance, or 23
repair of the boat or vessel; or (iii) Storage for the purpose of selling the boat or vessel. 24
(47)(48) Jewelry display product. From the sale and from the storage, use, or other 25
consumption in this state of tangible personal property used to display any jewelry product; 26
provided that title to the jewelry display product is transferred by the jewelry manufacturer or seller 27
and that the jewelry display product is shipped out of state for use solely outside the state and is not 28
returned to the jewelry manufacturer or seller. 29
(48)(49) Boats or vessels generally. Notwithstanding the provisions of this chapter, the tax 30
imposed by §§ 44-18-20 and 44-18-18 shall not apply with respect to the sale and to the storage, 31
use, or other consumption in this state of any new or used boat. The exemption provided for in this 32
subdivision does not apply after October 1, 1993, unless prior to October 1, 1993, the federal ten 33
percent (10%) surcharge on luxury boats is repealed. 34
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(49)(50) Banks and regulated investment companies interstate toll-free calls. 1
Notwithstanding the provisions of this chapter, the tax imposed by this chapter does not apply to 2
the furnishing of interstate and international, toll-free terminating telecommunication service that 3
is used directly and exclusively by or for the benefit of an eligible company as defined in this 4
subdivision; provided that an eligible company employs on average during the calendar year no 5
less than five hundred (500) “full-time equivalent employees” as that term is defined in § 42-64.5-6
2. For purposes of this section, an “eligible company” means a “regulated investment company” as 7
that term is defined in the Internal Revenue Code of 1986, 26 U.S.C. § 851, or a corporation to the 8
extent the service is provided, directly or indirectly, to or on behalf of a regulated investment 9
company, an employee benefit plan, a retirement plan or a pension plan, or a state-chartered bank. 10
(50)(51) Mobile and manufactured homes generally. From the sale and from the storage, 11
use, or other consumption in this state of mobile and/or manufactured homes as defined and subject 12
to taxation pursuant to the provisions of chapter 44 of title 31. 13
(51)(52) Manufacturing business reconstruction materials. 14
(i) From the sale and from the storage, use, or other consumption in this state of lumber, 15
hardware, and other building materials used in the reconstruction of a manufacturing business 16
facility that suffers a disaster, as defined in this subdivision, in this state. “Disaster” means any 17
occurrence, natural or otherwise, that results in the destruction of sixty percent (60%) or more of 18
an operating manufacturing business facility within this state. “Disaster” does not include any 19
damage resulting from the willful act of the owner of the manufacturing business facility. 20
(ii) Manufacturing business facility includes, but is not limited to, the structures housing 21
the production and administrative facilities. 22
(iii) In the event a manufacturer has more than one manufacturing site in this state, the sixty 23
percent (60%) provision applies to the damages suffered at that one site. 24
(iv) To the extent that the costs of the reconstruction materials are reimbursed by insurance, 25
this exemption does not apply. 26
(52)(53) Tangible personal property and supplies used in the processing or preparation of 27
floral products and floral arrangements. From the sale, storage, use, or other consumption in this 28
state of tangible personal property or supplies purchased by florists, garden centers, or other like 29
producers or vendors of flowers, plants, floral products, and natural and artificial floral 30
arrangements that are ultimately sold with flowers, plants, floral products, and natural and artificial 31
floral arrangements or are otherwise used in the decoration, fabrication, creation, processing, or 32
preparation of flowers, plants, floral products, or natural and artificial floral arrangements, 33
including descriptive labels, stickers, and cards affixed to the flower, plant, floral product, or 34
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arrangement, artificial flowers, spray materials, floral paint and tint, plant shine, flower food, 1
insecticide, and fertilizers. 2
(53)(54) Horse food products. From the sale and from the storage, use, or other 3
consumption in this state of horse food products purchased by a person engaged in the business of 4
the boarding of horses. 5
(54)(55) Non-motorized recreational vehicles sold to nonresidents. 6
(i) From the sale, subsequent to June 30, 2003, of a non-motorized recreational vehicle to 7
a bona fide nonresident of this state who does not register the non-motorized recreational vehicle 8
in this state, whether the sale or delivery of the non-motorized recreational vehicle is made in this 9
state or at the place of residence of the nonresident; provided that a non-motorized recreational 10
vehicle sold to a bona fide nonresident whose state of residence does not allow a like exemption to 11
its nonresidents is not exempt from the tax imposed under § 44-18-20; provided, further, that in 12
that event the bona fide nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate 13
that would be imposed in his or her state of residence not to exceed the rate that would have been 14
imposed under § 44-18-20. Notwithstanding any other provisions of law, a licensed, non-motorized 15
recreational vehicle dealer shall add and collect the tax required under this subdivision and remit 16
the tax to the tax administrator under the provisions of chapters 18 and 19 of this title. Provided, 17
that when a Rhode Island licensed, non-motorized recreational vehicle dealer is required to add and 18
collect the sales and use tax on the sale of a non-motorized recreational vehicle to a bona fide 19
nonresident as provided in this section, the dealer in computing the tax takes into consideration the 20
law of the state of the nonresident as it relates to the trade-in of motor vehicles. 21
(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 22
require any licensed, non-motorized recreational vehicle dealer to keep records of sales to bona fide 23
nonresidents as the tax administrator deems reasonably necessary to substantiate the exemption 24
provided in this subdivision, including the affidavit of a licensed, non-motorized recreational 25
vehicle dealer that the purchaser of the non-motorized recreational vehicle was the holder of, and 26
had in his or her possession a valid out-of-state non-motorized recreational vehicle registration or 27
a valid out-of-state driver’s license. 28
(iii) Any nonresident who registers a non-motorized recreational vehicle in this state within 29
ninety (90) days of the date of its sale to him or her is deemed to have purchased the non-motorized 30
recreational vehicle for use, storage, or other consumption in this state, and is subject to, and liable 31
for, the use tax imposed under the provisions of § 44-18-20. 32
(iv) “Non-motorized recreational vehicle” means any portable dwelling designed and 33
constructed to be used as a temporary dwelling for travel, camping, recreational, and vacation use 34
LC001650 - Page 24 of 29
that is eligible to be registered for highway use, including, but not limited to, “pick-up coaches” or 1
“pick-up campers,” “travel trailers,” and “tent trailers” as those terms are defined in chapter 1 of 2
title 31. 3
(55)(56) Sprinkler and fire alarm systems in existing buildings. From the sale in this state 4
of sprinkler and fire alarm systems; emergency lighting and alarm systems; and the materials 5
necessary and attendant to the installation of those systems that are required in buildings and 6
occupancies existing therein in July 2003 in order to comply with any additional requirements for 7
such buildings arising directly from the enactment of the Comprehensive Fire Safety Act of 2003 8
and that are not required by any other provision of law or ordinance or regulation adopted pursuant 9
to that act. The exemption provided in this subdivision shall expire on December 31, 2008. 10
(56)(57) Aircraft. Notwithstanding the provisions of this chapter, the tax imposed by §§ 11
44-18-18 and 44-18-20 shall not apply with respect to the sale and to the storage, use, or other 12
consumption in this state of any new or used aircraft or aircraft parts. 13
(57)(58) Renewable energy products. Notwithstanding any other provisions of Rhode 14
Island general laws, the following products shall also be exempt from sales tax: solar photovoltaic 15
modules or panels, or any module or panel that generates electricity from light; solar thermal 16
collectors, including, but not limited to, those manufactured with flat glass plates, extruded plastic, 17
sheet metal, and/or evacuated tubes; geothermal heat pumps, including both water-to-water and 18
water-to-air type pumps; wind turbines; towers used to mount wind turbines if specified by or sold 19
by a wind turbine manufacturer; DC to AC inverters that interconnect with utility power lines; and 20
manufactured mounting racks and ballast pans for solar collector, module, or panel installation. Not 21
to include materials that could be fabricated into such racks; monitoring and control equipment, if 22
specified or supplied by a manufacturer of solar thermal, solar photovoltaic, geothermal, or wind 23
energy systems or if required by law or regulation for such systems but not to include pumps, fans 24
or plumbing or electrical fixtures unless shipped from the manufacturer affixed to, or an integral 25
part of, another item specified on this list; and solar storage tanks that are part of a solar domestic 26
hot water system or a solar space heating system. If the tank comes with an external heat exchanger 27
it shall also be tax exempt, but a standard hot water tank is not exempt from state sales tax. 28
(58)(59) Returned property. The amount charged for property returned by customers upon 29
rescission of the contract of sale when the entire amount exclusive of handling charges paid for the 30
property is refunded in either cash or credit, and where the property is returned within one hundred 31
twenty (120) days from the date of delivery. 32
(59)(60) Dietary supplements. From the sale and from the storage, use, or other 33
consumption of dietary supplements as defined in § 44-18-7.1(l)(v), sold on prescriptions. 34
LC001650 - Page 25 of 29
(60)(61) Blood. From the sale and from the storage, use, or other consumption of human 1
blood. 2
(61)(62) Agricultural products for human consumption. From the sale and from the 3
storage, use, or other consumption of livestock and poultry of the kinds of products that ordinarily 4
constitute food for human consumption and of livestock of the kind the products of which ordinarily 5
constitute fibers for human use. 6
(62)(63) Diesel emission control technology. From the sale and use of diesel retrofit 7
technology that is required by § 31-47.3-4. 8
(63)(64) Feed for certain animals used in commercial farming. From the sale of feed for 9
animals as described in subsection (61) of this section. 10
(64)(65) Alcoholic beverages. From the sale and storage, use, or other consumption in this 11
state by a Class A licensee of alcoholic beverages, as defined in § 44-18-7.1, excluding beer and 12
malt beverages; provided, further, notwithstanding § 6-13-1 or any other general or public law to 13
the contrary, alcoholic beverages, as defined in § 44-18-7.1, shall not be subject to minimum 14
markup. 15
(65)(66) Seeds and plants used to grow food and food ingredients. From the sale, storage, 16
use, or other consumption in this state of seeds and plants used to grow food and food ingredients 17
as defined in § 44-18-7.1(l)(i). “Seeds and plants used to grow food and food ingredients” shall not 18
include marijuana seeds or plants. 19
(66)(67) Feminine hygiene products. From the sale and from the storage, use, or other 20
consumption of tampons, panty liners, menstrual cups, sanitary napkins, and other similar products 21
the principal use of which is feminine hygiene in connection with the menstrual cycle. 22
(67)(68) “Breast pump collection and storage supplies” means items of tangible personal 23
property used in conjunction with a breast pump to collect milk expressed from a human breast and 24
to store collected milk until it is ready for consumption. “Breast pump collection and storage 25
supplies” include, but are not limited to, breast shields and breast shield connectors; breast pump 26
tubes and tubing adaptors; breast pump valves and membranes; backflow protectors and backflow 27
protector adaptors; bottles and bottle caps specific to the operation of the breast pump; breast milk 28
storage bags; and related items sold as part of a breast pump kit pre-packaged by the breast pump 29
manufacturer. “Breast pump collection and storage supplies” does not include: bottles and bottle 30
caps not specific to the operation of the breast pump; breast pump travel bags and other similar 31
carrying accessories, including ice packs, labels, and other similar products, unless sold as part of 32
a breast pump kit pre-packed by the breast pump manufacturer; breast pump cleaning supplies, 33
unless sold as part of a breast pump kit pre-packaged by the breast pump manufacturer; nursing 34
LC001650 - Page 26 of 29
bras, bra pads, breast shells, and other similar products; and creams, ointments, and other similar 1
products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples. 2
(68)(69) Trade-in value of motorcycles. From the sale and from the storage, use, or other 3
consumption in this state of so much of the purchase price paid for a new or used motorcycle as is 4
allocated for a trade-in allowance on the motorcycle of the buyer given in trade to the seller, or of 5
the proceeds applicable only to the motorcycle as are received from the manufacturer of 6
motorcycles for the repurchase of the motorcycle whether the repurchase was voluntary or not 7
towards the purchase of a new or used motorcycle by the buyer. For the purpose of this subsection, 8
the word “motorcycle” means a motorcycle not used for hire and does not refer to any other type 9
of motor vehicle. 10
SECTION 8. Section 44-27-1 of the General Laws in Chapter 44-27 entitled "Taxation of 11
Farm, Forest, and Open Space Land" is hereby amended to read as follows: 12
44-27-1. Legislative declaration. 13
It is declared: 14
(1) That it is in the public interest to encourage the preservation of farm, forest, and open 15
space land in order to maintain a readily available source of food, and farm and forest products 16
close to the metropolitan areas of the state, to conserve the state’s natural resources, and to provide 17
for the welfare and happiness of the inhabitants of the state. 18
(2) That it is in the public interest to prevent the forced conversion of farm, forest, and open 19
space land to more intensive uses as the result of economic pressures caused by the assessment for 20
purposes of property taxation at values incompatible with their preservation as farm, forest, and 21
open space land. 22
(3) That the necessity in the public interest of the enactment of the provisions of this chapter 23
is a matter of legislative determination. 24
SECTION 9. Section 45-24-37 of the General Laws in Chapter 45-24 entitled "Zoning 25
Ordinances" is hereby amended to read as follows: 26
45-24-37. General provisions — Permitted uses. 27
(a) The zoning ordinance shall provide a listing of all land uses and/or performance 28
standards for uses that are permitted within the zoning use districts of the municipality. The 29
ordinance may provide for a procedure under which a proposed land use that is not specifically 30
listed may be presented by the property owner to the zoning board of review or to a local official 31
or agency charged with administration and enforcement of the ordinance for an evaluation and 32
determination of whether the proposed use is of a similar type, character, and intensity as a listed 33
permitted use. Upon such determination, the proposed use may be considered to be a permitted use. 34
LC001650 - Page 27 of 29
(b) Notwithstanding any other provision of this chapter, the following uses are permitted 1
uses within all residential zoning use districts of a municipality and all industrial and commercial 2
zoning use districts except where residential use is prohibited for public health or safety reasons: 3
(1) Households; 4
(2) Community residences; and 5
(3) Family daycare homes. 6
(c) Any time a building or other structure used for residential purposes, or a portion of a 7
building containing residential units, is rendered uninhabitable by virtue of a casualty such as fire 8
or flood, the owner of the property is allowed to park, temporarily, mobile and manufactured home, 9
or homes, as the need may be, elsewhere upon the land, for use and occupancy of the former 10
occupants for a period of up to twelve (12) months, or until the building or structure is rehabilitated 11
and otherwise made fit for occupancy. The property owner, or a properly designated agent of the 12
owner, is only allowed to cause the mobile and manufactured home, or homes, to remain 13
temporarily upon the land by making timely application to the local building official for the 14
purposes of obtaining the necessary permits to repair or rebuild the structure. 15
(d) Notwithstanding any other provision of this chapter, appropriate access for people with 16
disabilities to residential structures is allowed as a reasonable accommodation for any person(s) 17
residing, or intending to reside, in the residential structure. 18
(e) Notwithstanding any other provision of this chapter, an accessory dwelling unit in an 19
owner-occupied residence that complies with §§ 45-24-31 and 45-24-73 shall be permitted as a 20
reasonable accommodation for family members with disabilities or who are sixty-two (62) years of 21
age or older, or to accommodate other family members. 22
(f) When used in this section the terms “people with disabilities” or “member, or members, 23
with disabilities” means a person(s) who has a physical or mental impairment that substantially 24
limits one or more major life activities, as defined in § 42-87-1(7). 25
(g) Notwithstanding any other provisions of this chapter, plant agriculture is a permitted 26
use and forest product operations, as defined in § 2-28-4 are permitted uses within all zoning 27
districts of a municipality, including all industrial and commercial zoning districts, except where 28
prohibited for public health or safety reasons or the protection of wildlife habitat. 29
SECTION 10. Construction. This act, being necessary for the welfare of the state and its 30
inhabitants, shall be construed liberally so as to effectuate its purposes. 31
SECTION 11. Severability. If any clause, sentence, paragraph, section, or part of this act 32
shall be adjudged by any court of competent jurisdiction to be invalid, that judgment shall not 33
affect, impair, or invalidate the remainder of this act but shall be confined in its operation to the 34
LC001650 - Page 28 of 29
clause, sentence, paragraph, section, or part directly involved in the controversy in which that 1
judgment shall have been rendered. 2
SECTION 12. This act shall take effect upon passage. 3
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO AGRICULTURE AND FORESTRY -- FORESTRY AND FOREST PRODUCT
OPERATIONS
***
This act would establish sales and use tax exemptions for commercial forest product 1
operations with gross sales of at least five thousand dollars ($5,000). The exemption is provided in 2
two (2) levels with the distinction being operations generating less than fifty thousand dollars 3
($50,000) in average sales would be limited to an exemption on motor vehicles up to five thousand 4
dollars ($5,000) in value. Exempt would be machinery and equipment to include, but not limited 5
to: sawmills, tractors, forklifts, log skidders, chainsaws and power generators. Additionally, the act 6
would create a new motor vehicle registration for "forestry vehicles". Additionally, this act would 7
provide that all forestry product operations machinery, including motor vehicles with forestry 8
registration plates would be exempt from taxation. Municipalities may tax forestry product 9
operations buildings at a rate that reflects the actual cost incurred by the municipality in providing 10
services to these buildings. This act would also provide that forest product operations are permitted 11
uses within all zoning districts of a municipality except where prohibited for public health or safety 12
reasons or the protection of wildlife habitat. 13
This act would take effect upon passage. 14
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