Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0078 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- S 0078
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7	7	LC001033
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND
16	16	COMPUTATION
17	17	Introduced By: Senators Burke, Euer, LaMountain, McKenney, E Morgan, and de la Cruz
18	18	Date Introduced: February 01, 2023
19	19	Referred To: Senate Finance
20	20
21	21
22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Sections 44-18-7.1 and 44-18-30 of the General Laws in Chapter 44-18 1
24	24	entitled "Sales and Use Taxes — Liability and Computation" are hereby amended to read as 2
25	25	follows: 3
26	26	44-18-7.1. Additional definitions. 4
27	27	(a) “Agreement” means the streamlined sales and use tax agreement. 5
28	28	(b) “Alcoholic beverages” means beverages, including, without limitation, beer and malt 6
29	29	beverages, that are suitable for human consumption and contain one-half of one percent (.5%) or 7
30	30	more of alcohol by volume. 8
31	31	(c) “Bundled transaction” is the retail sale of two or more products, except real property 9
32	32	and services to real property, where (1) The products are otherwise distinct and identifiable, and 10
33	33	(2) The products are sold for one non-itemized price. A “bundled transaction” does not include the 11
34	34	sale of any products in which the “sales price” varies, or is negotiable, based on the selection by 12
35	35	the purchaser of the products included in the transaction. 13
36	36	(i) “Distinct and identifiable products” does not include: 14
37	37	(A) Packaging — such as containers, boxes, sacks, bags, and bottles — or other materials 15
38	38	— such as wrapping, labels, tags, and instruction guides — that accompany the “retail sale” of the 16
39	39	products and are incidental or immaterial to the “retail sale” thereof. Examples of packaging that 17
40	40	are incidental or immaterial include grocery sacks, shoeboxes, dry cleaning garment bags, and 18
41	41
42	42
43	43	LC001033 - Page 2 of 30
44	44	express delivery envelopes and boxes. 1
45	45	(B) A product provided free of charge with the required purchase of another product. A 2
46	46	product is “provided free of charge” if the “sales price” of the product purchased does not vary 3
47	47	depending on the inclusion of the products “provided free of charge.” 4
48	48	(C) Items included in the member state’s definition of “sales price,” pursuant to appendix 5
49	49	C of the agreement. 6
50	50	(ii) The term “one non-itemized price” does not include a price that is separately identified 7
51	51	by product on binding sales or other supporting sales-related documentation made available to the 8
52	52	customer in paper or electronic form including, but not limited to, an invoice, bill of sale, receipt, 9
53	53	contract, service agreement, lease agreement, periodic notice of rates and services, rate card, or 10
54	54	price list. 11
55	55	(iii) A transaction that otherwise meets the definition of a “bundled transaction” as defined 12
56	56	above, is not a “bundled transaction” if it is: 13
57	57	(A) The “retail sale” of tangible personal property and a service where the tangible personal 14
58	58	property is essential to the use of the service, and is provided exclusively in connection with the 15
59	59	service, and the true object of the transaction is the service; or 16
60	60	(B) The “retail sale” of services where one service is provided that is essential to the use 17
61	61	or receipt of a second service and the first service is provided exclusively in connection with the 18
62	62	second service and the true object of the transaction is the second service; or 19
63	63	(C) A transaction that includes taxable products and nontaxable products and the “purchase 20
64	64	price” or “sales price” of the taxable products is de minimis. 21
65	65	1. De minimis means the seller’s “purchase price” or “sales price” of the taxable products 22
66	66	is ten percent (10%) or less of the total “purchase price” or “sales price” of the bundled products. 23
67	67	2. Sellers shall use either the “purchase price” or the “sales price” of the products to 24
68	68	determine if the taxable products are de minimis. Sellers may not use a combination of the 25
69	69	“purchase price” and “sales price” of the products to determine if the taxable products are de 26
70	70	minimis. 27
71	71	3. Sellers shall use the full term of a service contract to determine if the taxable products 28
72	72	are de minimis; or 29
73	73	(D) The “retail sale” of exempt tangible personal property and taxable tangible personal 30
74	74	property where: 31
75	75	1. The transaction includes “food and food ingredients,” “drugs,” “durable medical 32
76	76	equipment,” “mobility enhancing equipment,” “over-the-counter drugs,” “prosthetic devices” (all 33
77	77	as defined in this section) or medical supplies; and 34
78	78
79	79
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81	81	2. Where the seller’s “purchase price” or “sales price” of the taxable tangible personal 1
82	82	property is fifty percent (50%) or less of the total “purchase price” or “sales price” of the bundled 2
83	83	tangible personal property. Sellers may not use a combination of the “purchase price” and “sales 3
84	84	price” of the tangible personal property when making the fifty percent (50%) determination for a 4
85	85	transaction. 5
86	86	(d) “Certified automated system (CAS)” means software certified under the agreement to 6
87	87	calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit 7
88	88	to the appropriate state, and maintain a record of the transaction. 8
89	89	(e) “Certified service provider (CSP)” means an agent certified under the agreement to 9
90	90	perform all the seller’s sales and use tax functions, other than the seller’s obligation to remit tax on 10
91	91	its own purchases. 11
92	92	(f) Clothing and related items.(i) “Clothing” means all human wearing apparel suitable for 12
93	93	general use. 13
94	94	(ii) “Clothing accessories or equipment” means incidental items worn on the person or in 14
95	95	conjunction with “clothing.” “Clothing accessories or equipment” does not include “clothing,” 15
96	96	“sport or recreational equipment,” or “protective equipment.” 16
97	97	(iii) “Protective equipment” means items for human wear and designed as protection of the 17
98	98	wearer against injury or disease or as protections against damage or injury of other persons or 18
99	99	property but not suitable for general use. “Protective equipment” does not include “clothing,” 19
100	100	“clothing accessories or equipment,” and “sport or recreational equipment.” 20
101	101	(iv) “Sport or recreational equipment” means items designed for human use and worn in 21
102	102	conjunction with an athletic or recreational activity that are not suitable for general use. “Sport or 22
103	103	recreational equipment” does not include “clothing,” “clothing accessories or equipment,” and 23
104	104	“protective equipment.” 24
105	105	(g) Computer and related items.(i) “Computer” means an electronic device that accepts 25
106	106	information in digital or similar form and manipulates it for a result based on a sequence of 26
107	107	instructions. 27
108	108	(ii) “Computer software” means a set of coded instructions designed to cause a “computer” 28
109	109	or automatic data processing equipment to perform a task. 29
110	110	(iii) “Delivered electronically” means delivered to the purchaser by means other than 30
111	111	tangible storage media. 31
112	112	(iv) “Electronic” means relating to technology having electrical, digital, magnetic, 32
113	113	wireless, optical, electromagnetic, or similar capabilities. 33
114	114	(v) “Load and leave” means delivery to the purchaser by use of a tangible storage media 34
115	115
116	116
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118	118	where the tangible storage media is not physically transferred to the purchaser. 1
119	119	(vi) “Prewritten computer software” means “computer software,” including prewritten 2
120	120	upgrades, that is not designed and developed by the author or other creator to the specifications of 3
121	121	a specific purchaser. The combining of two (2) or more “prewritten computer software” programs 4
122	122	or prewritten portions thereof does not cause the combination to be other than “prewritten computer 5
123	123	software.” “Prewritten computer software” includes software designed and developed by the 6
124	124	author or other creator to the specifications of a specific purchaser when it is sold to a person other 7
125	125	than the specific purchaser. Where a person modifies or enhances “computer software” of which 8
126	126	the person is not the author or creator, the person shall be deemed to be the author or creator only 9
127	127	of such person’s modifications or enhancements. “Prewritten computer software” or a prewritten 10
128	128	portion thereof that is modified or enhanced to any degree, where such modification or 11
129	129	enhancement is designed and developed to the specifications of a specific purchaser, remains 12
130	130	“prewritten computer software”; provided, however, that where there is a reasonable, separately 13
131	131	stated charge or an invoice or other statement of the price given to the purchaser for such 14
132	132	modification or enhancement, such modification or enhancement shall not constitute “prewritten 15
133	133	computer software.” 16
134	134	(vii) “Vendor-hosted prewritten computer software” means prewritten computer software 17
135	135	that is accessed through the internet and/or a vendor-hosted server regardless of whether the access 18
136	136	is permanent or temporary and regardless of whether any downloading occurs. 19
137	137	(h) Drugs and related items.(i) “Drug” means a compound, substance, or preparation, and 20
138	138	any component of a compound, substance, or preparation, other than “food and food ingredients,” 21
139	139	“dietary supplements” or “alcoholic beverages”: 22
140	140	(A) Recognized in the official United States Pharmacopoeia, official Homeopathic 23
141	141	Pharmacopoeia of the United States, or official National Formulary, and supplement to any of them; 24
142	142	or 25
143	143	(B) Intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease; 26
144	144	or 27
145	145	(C) Intended to affect the structure or any function of the body. 28
146	146	“Drug” shall also include insulin and medical oxygen whether or not sold on prescription. 29
147	147	(ii) “Over-the-counter drug” means a drug that contains a label that identifies the product 30
148	148	as a drug as required by 21 C.F.R. § 201.66. The “over-the-counter drug” label includes: 31
149	149	(A) A “Drug Facts” panel; or 32
150	150	(B) A statement of the “active ingredient(s)” with a list of those ingredients contained in 33
151	151	the compound, substance, or preparation. 34
152	152
153	153
154	154	LC001033 - Page 5 of 30
155	155	“Over-the-counter drug” shall not include “grooming and hygiene products.” 1
156	156	(iii) “Grooming and hygiene products” are soaps and cleaning solutions, shampoo, 2
157	157	toothpaste, mouthwash, antiperspirants, and suntan lotions and screens, regardless of whether the 3
158	158	items meet the definition of “over-the-counter drugs.” 4
159	159	(iv) “Prescription” means an order, formula, or recipe issued in any form of oral, written, 5
160	160	electronic, or other means of transmission by a duly licensed practitioner authorized by the laws of 6
161	161	the member state. 7
162	162	(i) “Delivery charges” means charges by the seller of personal property or services for 8
163	163	preparation and delivery to a location designated by the purchaser of personal property or services 9
164	164	including, but not limited to: transportation, shipping, postage, handling, crating, and packing. 10
165	165	“Delivery charges” shall not include the charges for delivery of “direct mail” if the charges 11
166	166	are separately stated on an invoice or similar billing document given to the purchaser. 12
167	167	(j) “Direct mail” means printed material delivered or distributed by United States mail or 13
168	168	other delivery service to a mass audience or to addressees on a mailing list provided by the 14
169	169	purchaser or at the direction of the purchaser when the cost of the items are not billed directly to 15
170	170	the recipients. “Direct mail” includes tangible personal property supplied directly or indirectly by 16
171	171	the purchaser to the direct mail seller for inclusion in the package containing the printed material. 17
172	172	“Direct mail” does not include multiple items of printed material delivered to a single address. 18
173	173	(k) “Durable medical equipment” means equipment including repair and replacement parts 19
174	174	for same which: 20
175	175	(i) Can withstand repeated use; and 21
176	176	(ii) Is primarily and customarily used to serve a medical purpose; and 22
177	177	(iii) Generally is not useful to a person in the absence of illness or injury; and 23
178	178	(iv) Is not worn in or on the body. 24
179	179	Durable medical equipment does not include mobility enhancing equipment. 25
180	180	(l) Food and related items.(i) “Food and food ingredients” means substances, whether in 26
181	181	liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing 27
182	182	by humans and are consumed for their taste or nutritional value. “Food and food ingredients” does 28
183	183	not include “alcoholic beverages,” “tobacco,” “candy,” “dietary supplements,” and “soft drinks.” 29
184	184	(ii) “Prepared food” means: 30
185	185	(A) Food sold in a heated state or heated by the seller; 31
186	186	(B) Two (2) or more food ingredients mixed or combined by the seller for sale as a single 32
187	187	item; or 33
188	188	(C) Food sold with eating utensils provided by the seller, including: plates, knives, forks, 34
189	189
190	190
191	191	LC001033 - Page 6 of 30
192	192	spoons, glasses, cups, napkins, or straws. A plate does not include a container or packaging used 1
193	193	to transport the food. 2
194	194	“Prepared food” in subsection (l)(ii)(B) does not include food that is only cut, repackaged, 3
195	195	or pasteurized by the seller, and eggs, fish, meat, poultry, and foods containing these raw animal 4
196	196	foods requiring cooking by the consumer as recommended by the Food and Drug Administration 5
197	197	in chapter 3, part 401.11 of its Food Code so as to prevent food borne illnesses. 6
198	198	(iii) “Candy” means a preparation of sugar, honey, or other natural or artificial sweeteners 7
199	199	in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, 8
200	200	drops, or pieces. “Candy” shall not include any preparation containing flour and shall require no 9
201	201	refrigeration. 10
202	202	(iv) “Soft drinks” means non-alcoholic beverages that contain natural or artificial 11
203	203	sweeteners. “Soft drinks” do not include beverages that contain milk or milk products, soy, rice, 12
204	204	or similar milk substitutes, or greater than fifty percent (50%) of vegetable or fruit juice by volume. 13
205	205	(v) “Dietary supplement” means any product, other than “tobacco,” intended to supplement 14
206	206	the diet that: 15
207	207	(A) Contains one or more of the following dietary ingredients: 16
208	208	1. A vitamin; 17
209	209	2. A mineral; 18
210	210	3. An herb or other botanical; 19
211	211	4. An amino acid; 20
212	212	5. A dietary substance for use by humans to supplement the diet by increasing the total 21
213	213	dietary intake; or 22
214	214	6. A concentrate, metabolite, constituent, extract, or combination of any ingredient 23
215	215	described above; and 24
216	216	(B) Is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, or 25
217	217	if not intended for ingestion in such a form, is not represented as conventional food and is not 26
218	218	represented for use as a sole item of a meal or of the diet; and 27
219	219	(C) Is required to be labeled as a dietary supplement, identifiable by the “supplemental 28
220	220	facts” box found on the label and as required pursuant to 21 C.F.R. § 101.36. 29
221	221	(m) “Food sold through vending machines” means food dispensed from a machine or other 30
222	222	mechanical device that accepts payment. 31
223	223	(n) “Hotel” means every building or other structure kept, used, maintained, advertised as, 32
224	224	or held out to the public to be a place where living quarters are supplied for pay to transient or 33
225	225	permanent guests and tenants and includes a motel. 34
226	226
227	227
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229	229	(i) “Living quarters” means sleeping rooms, sleeping or housekeeping accommodations, or 1
230	230	any other room or accommodation in any part of the hotel, rooming house, or tourist camp that is 2
231	231	available for or rented out for hire in the lodging of guests. 3
232	232	(ii) “Rooming house” means every house, boat, vehicle, motor court, or other structure 4
233	233	kept, used, maintained, advertised, or held out to the public to be a place where living quarters are 5
234	234	supplied for pay to transient or permanent guests or tenants, whether in one or adjoining buildings. 6
235	235	(iii) “Tourist camp” means a place where tents or tent houses, or camp cottages, or cabins 7
236	236	or other structures are located and offered to the public or any segment thereof for human 8
237	237	habitation. 9
238	238	(o) “Lease or rental” means any transfer of possession or control of tangible personal 10
239	239	property for a fixed or indeterminate term for consideration. A lease or rental may include future 11
240	240	options to purchase or extend. Lease or rental does not include: 12
241	241	(i) A transfer of possession or control of property under a security agreement or deferred 13
242	242	payment plan that requires the transfer of title upon completion of the required payments; 14
243	243	(ii) A transfer of possession or control of property under an agreement that requires the 15
244	244	transfer of title upon completion of required payments and payment of an option price does not 16
245	245	exceed the greater of one hundred dollars ($100) or one percent of the total required payments; or 17
246	246	(iii) Providing tangible personal property along with an operator for a fixed or 18
247	247	indeterminate period of time. A condition of this exclusion is that the operator is necessary for the 19
248	248	equipment to perform as designed. For the purpose of this subsection, an operator must do more 20
249	249	than maintain, inspect, or set-up the tangible personal property. 21
250	250	(iv) Lease or rental does include agreements covering motor vehicles and trailers where the 22
251	251	amount of consideration may be increased or decreased by reference to the amount realized upon 23
252	252	sale or disposition of the property as defined in 26 U.S.C. § 7701(h)(1). 24
253	253	(v) This definition shall be used for sales and use tax purposes regardless if a transaction 25
254	254	is characterized as a lease or rental under generally accepted accounting principles, the Internal 26
255	255	Revenue Code, the Uniform Commercial Code, or other provisions of federal, state, or local law. 27
256	256	(vi) This definition will be applied only prospectively from the date of adoption and will 28
257	257	have no retroactive impact on existing leases or rentals. This definition shall neither impact any 29
258	258	existing sale-leaseback exemption or exclusions that a state may have, nor preclude a state from 30
259	259	adopting a sale-leaseback exemption or exclusion after the effective date of the agreement. 31
260	260	(p) “Mobility enhancing equipment” means equipment, including repair and replacement 32
261	261	parts to same, that: 33
262	262	(i) Is primarily and customarily used to provide or increase the ability to move from one 34
263	263
264	264
265	265	LC001033 - Page 8 of 30
266	266	place to another and that is appropriate for use either in a home or a motor vehicle; and 1
267	267	(ii) Is not generally used by persons with normal mobility; and 2
268	268	(iii) Does not include any motor vehicle or equipment on a motor vehicle normally 3
269	269	provided by a motor vehicle manufacturer. 4
270	270	Mobility enhancing equipment does not include durable medical equipment. 5
271	271	(q) “Model 1 Seller” means a seller that has selected a CSP as its agent to perform all the 6
272	272	seller’s sales and use tax functions, other than the seller’s obligation to remit tax on its own 7
273	273	purchases. 8
274	274	(r) “Model 2 Seller” means a seller that has selected a CAS to perform part of its sales and 9
275	275	use tax functions, but retains responsibility for remitting the tax. 10
276	276	(s) “Model 3 Seller” means a seller that has sales in at least five member states, has total 11
277	277	annual sales revenue of at least five hundred million dollars ($500,000,000), has a proprietary 12
278	278	system that calculates the amount of tax due each jurisdiction, and has entered into a performance 13
279	279	agreement with the member states that establishes a tax performance standard for the seller. As 14
280	280	used in this definition, a seller includes an affiliated group of sellers using the same proprietary 15
281	281	system. 16
282	282	(t) “Prosthetic device” means a replacement, corrective, or supportive device including 17
283	283	repair and replacement parts for same worn on or in the body to: 18
284	284	(i) Artificially replace a missing portion of the body; 19
285	285	(ii) Prevent or correct physical deformity or malfunction; or 20
286	286	(iii) Support a weak or deformed portion of the body. 21
287	287	(u) “Purchaser” means a person to whom a sale of personal property is made or to whom a 22
288	288	service is furnished. 23
289	289	(v) “Purchase price” applies to the measure subject to use tax and has the same meaning as 24
290	290	sales price. 25
291	291	(w) “Seller” means a person making sales, leases, or rentals of personal property or 26
292	292	services. 27
293	293	(x) Specified digital products.(i) “Specified digital products” means electronically 28
294	294	transferred: 29
295	295	(A) “Digital audio-visual works” which means a series of related images which, when 30
296	296	shown in succession, impart an impression of motion, together with accompanying sounds, if any; 31
297	297	(B) “Digital audio works” which means works that result from the fixation of a series of 32
298	298	musical, spoken, or other sounds, including ringtones; and/or 33
299	299	(C) “Digital books” which means works that are generally recognized in the ordinary and 34
300	300
301	301
302	302	LC001033 - Page 9 of 30
303	303	usual sense as “books.” 1
304	304	(ii) For purposes of the definition of “digital audio works,” “ringtones” means digitized 2
305	305	sound files that are downloaded onto a device and that may be used to alert the customer with 3
306	306	respect to a communication. 4
307	307	(iii) For purposes of the definition of “specified digital products,” “transferred 5
308	308	electronically” means obtained by the purchaser by means other than tangible storage media. 6
309	309	(iv) For the purposes of “specified digital products,” “end user” includes any person other 7
310	310	than a person who receives by contract a product “transferred electronically” for further broadcast, 8
311	311	rebroadcast, transmission, retransmission, licensing, relicensing, distribution, redistribution, or 9
312	312	exhibition of the product, in whole or in part, to another person or persons. A person who purchases 10
313	313	products “transferred electronically” or the code for “specified digital products” for the purpose of 11
314	314	giving away such products or code shall not be considered to have engaged in the distribution or 12
315	315	redistribution of such products or code and shall be treated as an end user. 13
316	316	(v) For the purposes of “specified digital products,” “permanent” means perpetual or for 14
317	317	an indefinite or unspecified length of time. 15
318	318	(y) “State” means any state of the United States and the District of Columbia. 16
319	319	(z) “Telecommunications” tax base/exemption terms. 17
320	320	(i) Telecommunication terms shall be defined as follows: 18
321	321	(A) “Ancillary services” means services that are associated with or incidental to the 19
322	322	provision of “telecommunications services,” including, but not limited to, “detailed 20
323	323	telecommunications billing,” “directory assistance,” “vertical service,” and “voice mail services.” 21
324	324	(B) “Conference bridging service” means an “ancillary service” that links two (2) or more 22
325	325	participants of an audio or video conference call and may include the provision of a telephone 23
326	326	number. “Conference bridging service” does not include the “telecommunications services” used 24
327	327	to reach the conference bridge. 25
328	328	(C) “Detailed telecommunications billing service” means an “ancillary service” of 26
329	329	separately stating information pertaining to individual calls on a customer’s billing statement. 27
330	330	(D) “Directory assistance” means an “ancillary service” of providing telephone number 28
331	331	information, and/or address information. 29
332	332	(E) “Vertical service” means an “ancillary service” that is offered in connection with one 30
333	333	or more “telecommunications services,” which offers advanced calling features that allow 31
334	334	customers to identify callers and to manage multiple calls and call connections, including 32
335	335	“conference bridging services.” 33
336	336	(F) “Voice mail service” means an “ancillary service” that enables the customer to store, 34
337	337
338	338
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340	340	send, or receive recorded messages. “Voice mail service” does not include any “vertical services” 1
341	341	that the customer may be required to have in order to utilize the “voice mail service.” 2
342	342	(G) “Telecommunications service” means the electronic transmission, conveyance, or 3
343	343	routing of voice, data, audio, video, or any other information or signals to a point, or between or 4
344	344	among points. The term “telecommunications service” includes such transmission, conveyance, or 5
345	345	routing in which computer processing applications are used to act on the form, code, or protocol of 6
346	346	the content for purposes of transmission, conveyance, or routing without regard to whether such 7
347	347	service is referred to as voice over internet protocol services or is classified by the Federal 8
348	348	Communications Commission as enhanced or value added. “Telecommunications service” does 9
349	349	not include: 10
350	350	(1) Data processing and information services that allow data to be generated, acquired, 11
351	351	stored, processed, or retrieved and delivered by an electronic transmission to a purchaser where 12
352	352	such purchaser’s primary purpose for the underlying transaction is the processed data or 13
353	353	information; 14
354	354	(2) Installation or maintenance of wiring or equipment on a customer’s premises; 15
355	355	(3) Tangible personal property; 16
356	356	(4) Advertising, including, but not limited to, directory advertising; 17
357	357	(5) Billing and collection services provided to third parties; 18
358	358	(6) Internet access service; 19
359	359	(7) Radio and television audio and video programming services, regardless of the medium, 20
360	360	including the furnishing of transmission, conveyance, and routing of such services by the 21
361	361	programming service provider. Radio and television audio and video programming services shall 22
362	362	include, but not be limited to, cable service as defined in 47 U.S.C. § 522(6) and audio and video 23
363	363	programming services delivered by commercial mobile radio service providers as defined in 47 24
364	364	C.F.R. § 20.3; 25
365	365	(8) “Ancillary services”; or 26
366	366	(9) Digital products “delivered electronically,” including, but not limited to: software, 27
367	367	music, video, reading materials, or ring tones. 28
368	368	(H) “800 service” means a “telecommunications service” that allows a caller to dial a toll-29
369	369	free number without incurring a charge for the call. The service is typically marketed under the 30
370	370	name “800,” “855,” “866,” “877,” and “888” toll-free calling, and any subsequent numbers 31
371	371	designated by the Federal Communications Commission. 32
372	372	(I) “900 service” means an inbound toll “telecommunications service” purchased by a 33
373	373	subscriber that allows the subscriber’s customers to call in to the subscriber’s prerecorded 34
374	374
375	375
376	376	LC001033 - Page 11 of 30
377	377	announcement or live service. “900 service” does not include the charge for: collection services 1
378	378	provided by the seller of the “telecommunications services” to the subscriber, or service or product 2
379	379	sold by the subscriber to the subscriber’s customer. The service is typically marketed under the 3
380	380	name “900 service,” and any subsequent numbers designated by the Federal Communications 4
381	381	Commission. 5
382	382	(J) “Fixed wireless service” means a “telecommunications service” that provides radio 6
383	383	communication between fixed points. 7
384	384	(K) “Mobile wireless service” means a “telecommunications service” that is transmitted, 8
385	385	conveyed, or routed regardless of the technology used, whereby the origination and/or termination 9
386	386	points of the transmission, conveyance, or routing are not fixed, including, by way of example only, 10
387	387	“telecommunications services” that are provided by a commercial mobile radio service provider. 11
388	388	(L) “Paging service” means a “telecommunications service” that provides transmission of 12
389	389	coded radio signals for the purpose of activating specific pagers; such transmissions may include 13
390	390	messages and/or sounds. 14
391	391	(M) “Prepaid calling service” means the right to access exclusively “telecommunications 15
392	392	services,” which must be paid for in advance and that enables the origination of calls using an 16
393	393	access number or authorization code, whether manually or electronically dialed, and that is sold in 17
394	394	predetermined units or dollars of which the number declines with use in a known amount. 18
395	395	(N) “Prepaid wireless calling service” means a “telecommunications service” that provides 19
396	396	the right to utilize “mobile wireless service,” as well as other non-telecommunications services, 20
397	397	including the download of digital products “delivered electronically,” content and “ancillary 21
398	398	services” which must be paid for in advance that is sold in predetermined units of dollars of which 22
399	399	the number declines with use in a known amount. 23
400	400	(O) “Private communications service” means a telecommunications service that entitles 24
401	401	the customer to exclusive or priority use of a communications channel or group of channels between 25
402	402	or among termination points, regardless of the manner in which such channel or channels are 26
403	403	connected, and includes switching capacity, extension lines, stations, and any other associated 27
404	404	services that are provided in connection with the use of such channel or channels. 28
405	405	(P) “Value-added non-voice data service” means a service that otherwise meets the 29
406	406	definition of “telecommunications services” in which computer processing applications are used to 30
407	407	act on the form, content, code, or protocol of the information or data primarily for a purpose other 31
408	408	than transmission, conveyance, or routing. 32
409	409	(ii) “Modifiers of Sales Tax Base/Exemption Terms” — the following terms can be used 33
410	410	to further delineate the type of “telecommunications service” to be taxed or exempted. The terms 34
411	411
412	412
413	413	LC001033 - Page 12 of 30
414	414	would be used with the broader terms and subcategories delineated above. 1
415	415	(A) “Coin-operated telephone service” means a “telecommunications service” paid for by 2
416	416	inserting money into a telephone accepting direct deposits of money to operate. 3
417	417	(B) “International” means a “telecommunications service” that originates or terminates in 4
418	418	the United States and terminates or originates outside the United States, respectively. United States 5
419	419	includes the District of Columbia or a U.S. territory or possession. 6
420	420	(C) “Interstate” means a “telecommunications service” that originates in one United States 7
421	421	state, or a United States territory or possession, and terminates in a different United States state or 8
422	422	a United States territory or possession. 9
423	423	(D) “Intrastate” means a “telecommunications service” that originates in one United States 10
424	424	state or a United States territory or possession, and terminates in the same United States state or a 11
425	425	United States territory or possession. 12
426	426	(E) “Pay telephone service” means a “telecommunications service” provided through any 13
427	427	pay telephone. 14
428	428	(F) “Residential telecommunications service” means a “telecommunications service” or 15
429	429	“ancillary services” provided to an individual for personal use at a residential address, including an 16
430	430	individual dwelling unit such as an apartment. In the case of institutions where individuals reside, 17
431	431	such as schools or nursing homes, “telecommunications service” is considered residential if it is 18
432	432	provided to and paid for by an individual resident rather than the institution. 19
433	433	The terms “ancillary services” and “telecommunications service” are defined as a broad 20
434	434	range of services. The terms “ancillary services” and “telecommunications service” are broader 21
435	435	than the sum of the subcategories. Definitions of subcategories of “ancillary services” and 22
436	436	“telecommunications service” can be used by a member state alone or in combination with other 23
437	437	subcategories to define a narrower tax base than the definitions of “ancillary services” and 24
438	438	“telecommunications service” would imply. The subcategories can also be used by a member state 25
439	439	to provide exemptions for certain subcategories of the more broadly defined terms. 26
440	440	A member state that specifically imposes tax on, or exempts from tax, local telephone or 27
441	441	local telecommunications service may define “local service” in any manner in accordance with § 28
442	442	44-18.1-28, except as limited by other sections of this Agreement. 29
443	443	(aa) “Tobacco” means cigarettes, cigars, chewing, or pipe tobacco, or any other item that 30
444	444	contains tobacco. 31
445	445	44-18-30. Gross receipts exempt from sales and use taxes. 32
446	446	There are exempted from the taxes imposed by this chapter the following gross receipts: 33
447	447	(1) Sales and uses beyond constitutional power of state. From the sale and from the storage, 34
448	448
449	449
450	450	LC001033 - Page 13 of 30
451	451	use, or other consumption in this state of tangible personal property the gross receipts from the sale 1
452	452	of which, or the storage, use, or other consumption of which, this state is prohibited from taxing 2
453	453	under the Constitution of the United States or under the constitution of this state. 3
454	454	(2) Newspapers. 4
455	455	(i) From the sale and from the storage, use, or other consumption in this state of any 5
456	456	newspaper. 6
457	457	(ii) “Newspaper” means an unbound publication printed on newsprint that contains news, 7
458	458	editorial comment, opinions, features, advertising matter, and other matters of public interest. 8
459	459	(iii) “Newspaper” does not include a magazine, handbill, circular, flyer, sales catalog, or 9
460	460	similar item unless the item is printed for, and distributed as, a part of a newspaper. 10
461	461	(3) School meals. From the sale and from the storage, use, or other consumption in this 11
462	462	state of meals served by public, private, or parochial schools, school districts, colleges, universities, 12
463	463	student organizations, and parent-teacher associations to the students or teachers of a school, 13
464	464	college, or university whether the meals are served by the educational institutions or by a food 14
465	465	service or management entity under contract to the educational institutions. 15
466	466	(4) Containers. 16
467	467	(i) From the sale and from the storage, use, or other consumption in this state of: 17
468	468	(A) Non-returnable containers, including boxes, paper bags, and wrapping materials that 18
469	469	are biodegradable and all bags and wrapping materials utilized in the medical and healing arts, 19
470	470	when sold without the contents to persons who place the contents in the container and sell the 20
471	471	contents with the container. 21
472	472	(B) Containers when sold with the contents if the sale price of the contents is not required 22
473	473	to be included in the measure of the taxes imposed by this chapter. 23
474	474	(C) Returnable containers when sold with the contents in connection with a retail sale of 24
475	475	the contents or when resold for refilling. 25
476	476	(D) Keg and barrel containers, whether returnable or not, when sold to alcoholic beverage 26
477	477	producers who place the alcoholic beverages in the containers. 27
478	478	(ii) As used in this subdivision, the term “returnable containers” means containers of a kind 28
479	479	customarily returned by the buyer of the contents for reuse. All other containers are “non-returnable 29
480	480	containers.” 30
481	481	(5)(i) Charitable, educational, and religious organizations. From the sale to, as in defined 31
482	482	in this section, and from the storage, use, and other consumption in this state, or any other state of 32
483	483	the United States of America, of tangible personal property by hospitals not operated for a profit; 33
484	484	“educational institutions” as defined in subdivision (18) not operated for a profit; churches, 34
485	485
486	486
487	487	LC001033 - Page 14 of 30
488	488	orphanages, and other institutions or organizations operated exclusively for religious or charitable 1
489	489	purposes; interest-free loan associations not operated for profit; nonprofit, organized sporting 2
490	490	leagues and associations and bands for boys and girls under the age of nineteen (19) years; the 3
491	491	following vocational student organizations that are state chapters of national vocational student 4
492	492	organizations: Distributive Education Clubs of America (DECA); Future Business Leaders of 5
493	493	America, Phi Beta Lambda (FBLA/PBL); Future Farmers of America (FFA); Future Homemakers 6
494	494	of America/Home Economics Related Occupations (FHA/HERD); Vocational Industrial Clubs of 7
495	495	America (VICA); organized nonprofit golden age and senior citizens clubs for men and women; 8
496	496	and parent-teacher associations; and from the sale, storage, use, and other consumption in this state, 9
497	497	of and by the Industrial Foundation of Burrillville, a Rhode Island domestic nonprofit corporation. 10
498	498	(ii) In the case of contracts entered into with the federal government, its agencies, or 11
499	499	instrumentalities, this state, or any other state of the United States of America, its agencies, any 12
500	500	city, town, district, or other political subdivision of the states; hospitals not operated for profit; 13
501	501	educational institutions not operated for profit; churches, orphanages, and other institutions or 14
502	502	organizations operated exclusively for religious or charitable purposes, the contractor may purchase 15
503	503	such materials and supplies (materials and/or supplies are defined as those that are essential to the 16
504	504	project) that are to be utilized in the construction of the projects being performed under the contracts 17
505	505	without payment of the tax. 18
506	506	(iii) The contractor shall not charge any sales or use tax to any exempt agency, institution, 19
507	507	or organization but shall in that instance provide his or her suppliers with certificates in the form 20
508	508	as determined by the division of taxation showing the reason for exemption and the contractor’s 21
509	509	records must substantiate the claim for exemption by showing the disposition of all property so 22
510	510	purchased. If any property is then used for a nonexempt purpose, the contractor must pay the tax 23
511	511	on the property used. 24
512	512	(6) Gasoline. From the sale and from the storage, use, or other consumption in this state 25
513	513	of: (i) Gasoline and other products taxed under chapter 36 of title 31 and (ii) Fuels used for the 26
514	514	propulsion of airplanes. 27
515	515	(7) Purchase for manufacturing purposes. 28
516	516	(i) From the sale and from the storage, use, or other consumption in this state of computer 29
517	517	software, tangible personal property, electricity, natural gas, artificial gas, steam, refrigeration, and 30
518	518	water, when the property or service is purchased for the purpose of being manufactured into a 31
519	519	finished product for resale and becomes an ingredient, component, or integral part of the 32
520	520	manufactured, compounded, processed, assembled, or prepared product, or if the property or 33
521	521	service is consumed in the process of manufacturing for resale computer software, tangible personal 34
522	522
523	523
524	524	LC001033 - Page 15 of 30
525	525	property, electricity, natural gas, artificial gas, steam, refrigeration, or water. 1
526	526	(ii) “Consumed” means destroyed, used up, or worn out to the degree or extent that the 2
527	527	property cannot be repaired, reconditioned, or rendered fit for further manufacturing use. 3
528	528	(iii) “Consumed” includes mere obsolescence. 4
529	529	(iv) “Manufacturing” means and includes: manufacturing, compounding, processing, 5
530	530	assembling, preparing, or producing. 6
531	531	(v) “Process of manufacturing” means and includes all production operations performed in 7
532	532	the producing or processing room, shop, or plant, insofar as the operations are a part of and 8
533	533	connected with the manufacturing for resale of tangible personal property, electricity, natural gas, 9
534	534	artificial gas, steam, refrigeration, or water and all production operations performed insofar as the 10
535	535	operations are a part of and connected with the manufacturing for resale of computer software. 11
536	536	(vi) “Process of manufacturing” does not mean or include administration operations such 12
537	537	as general office operations, accounting, collection, or sales promotion, nor does it mean or include 13
538	538	distribution operations that occur subsequent to production operations, such as handling, storing, 14
539	539	selling, and transporting the manufactured products, even though the administration and 15
540	540	distribution operations are performed by, or in connection with, a manufacturing business. 16
541	541	(8) State and political subdivisions. From the sale to, and from the storage, use, or other 17
542	542	consumption by, this state, any city, town, district, or other political subdivision of this state. Every 18
543	543	redevelopment agency created pursuant to chapter 31 of title 45 is deemed to be a subdivision of 19
544	544	the municipality where it is located. 20
545	545	(9) Food and food ingredients. From the sale and storage, use, or other consumption in this 21
546	546	state of food and food ingredients as defined in § 44-18-7.1(). 22
547	547	For the purposes of this exemption “food and food ingredients” shall not include candy, 23
548	548	soft drinks, dietary supplements, alcoholic beverages, tobacco, food sold through vending 24
549	549	machines, or prepared food, as those terms are defined in § 44-18-7.1, unless the prepared food is: 25
550	550	(i) Sold by a seller whose primary NAICS classification is manufacturing in sector 311, 26
551	551	except sub-sector 3118 (bakeries); 27
552	552	(ii) Sold in an unheated state by weight or volume as a single item; 28
553	553	(iii) Bakery items, including: bread, rolls, buns, biscuits, bagels, croissants, pastries, 29
554	554	donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, tortillas; and 30
555	555	is not sold with utensils provided by the seller, including: plates, knives, forks, spoons, 31
556	556	glasses, cups, napkins, or straws. 32
557	557	(10) Medicines, drugs, and durable medical equipment. From the sale and from the storage, 33
558	558	use, or other consumption in this state, of: 34
559	559
560	560
561	561	LC001033 - Page 16 of 30
562	562	(i) “Drugs” as defined in § 44-18-7.1(h)(i), sold on prescriptions, medical oxygen, and 1
563	563	insulin whether or not sold on prescription. For purposes of this exemption drugs shall not include 2
564	564	over-the-counter drugs and grooming and hygiene products as defined in § 44-18-7.1(h)(iii). 3
565	565	(ii) Durable medical equipment as defined in § 44-18-7.1(k) for home use only, including, 4
566	566	but not limited to: syringe infusers, ambulatory drug delivery pumps, hospital beds, convalescent 5
567	567	chairs, and chair lifts. Supplies used in connection with syringe infusers and ambulatory drug 6
568	568	delivery pumps that are sold on prescription to individuals to be used by them to dispense or 7
569	569	administer prescription drugs, and related ancillary dressings and supplies used to dispense or 8
570	570	administer prescription drugs, shall also be exempt from tax. 9
571	571	(11) Prosthetic devices and mobility enhancing equipment. From the sale and from the 10
572	572	storage, use, or other consumption in this state, of prosthetic devices as defined in § 44-18-7.1(t), 11
573	573	sold on prescription, including, but not limited to: artificial limbs, dentures, spectacles, eyeglasses, 12
574	574	and artificial eyes; artificial hearing devices and hearing aids, whether or not sold on prescription; 13
575	575	and mobility enhancing equipment as defined in § 44-18-7.1(p), including wheelchairs, crutches, 14
576	576	and canes. 15
577	577	(12) Coffins, caskets, urns, shrouds and burial garments. From the sale and from the 16
578	578	storage, use, or other consumption in this state of coffins, caskets, burial containers, urns, urn liners, 17
579	579	urn vaults, grave liners, grave vaults, burial tent setups, prayer cards, shrouds, and other burial 18
580	580	garments that are ordinarily sold by a funeral director as part of the business of funeral directing. 19
581	581	(13) Motor vehicles sold to nonresidents. 20
582	582	(i) From the sale, subsequent to June 30, 1958, of a motor vehicle to a bona fide nonresident 21
583	583	of this state who does not register the motor vehicle in this state, whether the sale or delivery of the 22
584	584	motor vehicle is made in this state or at the place of residence of the nonresident. A motor vehicle 23
585	585	sold to a bona fide nonresident whose state of residence does not allow a like exemption to its 24
586	586	nonresidents is not exempt from the tax imposed under § 44-18-20. In that event, the bona fide 25
587	587	nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate that would be imposed 26
588	588	in his or her state of residence not to exceed the rate that would have been imposed under § 44-18-27
589	589	20. Notwithstanding any other provisions of law, a licensed motor vehicle dealer shall add and 28
590	590	collect the tax required under this subdivision and remit the tax to the tax administrator under the 29
591	591	provisions of chapters 18 and 19 of this title. When a Rhode Island licensed, motor vehicle dealer 30
592	592	is required to add and collect the sales and use tax on the sale of a motor vehicle to a bona fide 31
593	593	nonresident as provided in this section, the dealer in computing the tax takes into consideration the 32
594	594	law of the state of the nonresident as it relates to the trade-in of motor vehicles. 33
595	595	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 34
596	596
597	597
598	598	LC001033 - Page 17 of 30
599	599	require any licensed motor vehicle dealer to keep records of sales to bona fide nonresidents as the 1
600	600	tax administrator deems reasonably necessary to substantiate the exemption provided in this 2
601	601	subdivision, including the affidavit of a licensed motor vehicle dealer that the purchaser of the 3
602	602	motor vehicle was the holder of, and had in his or her possession a valid out-of-state motor vehicle 4
603	603	registration or a valid out-of-state driver’s license. 5
604	604	(iii) Any nonresident who registers a motor vehicle in this state within ninety (90) days of 6
605	605	the date of its sale to him or her is deemed to have purchased the motor vehicle for use, storage, or 7
606	606	other consumption in this state, and is subject to, and liable for, the use tax imposed under the 8
607	607	provisions of § 44-18-20. 9
608	608	(14) Sales in public buildings by blind people. From the sale and from the storage, use, or 10
609	609	other consumption in all public buildings in this state of all products or wares by any person 11
610	610	licensed under § 40-9-11.1. 12
611	611	(15) Air and water pollution control facilities. From the sale, storage, use, or other 13
612	612	consumption in this state of tangible personal property or supplies acquired for incorporation into 14
613	613	or used and consumed in the operation of a facility, the primary purpose of which is to aid in the 15
614	614	control of the pollution or contamination of the waters or air of the state, as defined in chapter 12 16
615	615	of title 46 and chapter 23 of title 23, respectively, and that has been certified as approved for that 17
616	616	purpose by the director of environmental management. The director of environmental management 18
617	617	may certify to a portion of the tangible personal property or supplies acquired for incorporation 19
618	618	into those facilities or used and consumed in the operation of those facilities to the extent that that 20
619	619	portion has as its primary purpose the control of the pollution or contamination of the waters or air 21
620	620	of this state. As used in this subdivision, “facility” means any land, facility, device, building, 22
621	621	machinery, or equipment. 23
622	622	(16) Camps. From the rental charged for living quarters, or sleeping, or housekeeping 24
623	623	accommodations at camps or retreat houses operated by religious, charitable, educational, or other 25
624	624	organizations and associations mentioned in subsection (5), or by privately owned and operated 26
625	625	summer camps for children. 27
626	626	(17) Certain institutions. From the rental charged for living or sleeping quarters in an 28
627	627	institution licensed by the state for the hospitalization, custodial, or nursing care of human beings. 29
628	628	(18) Educational institutions. From the rental charged by any educational institution for 30
629	629	living quarters, or sleeping, or housekeeping accommodations or other rooms or accommodations 31
630	630	to any student or teacher necessitated by attendance at an educational institution. “Educational 32
631	631	institution” as used in this section means an institution of learning not operated for profit that is 33
632	632	empowered to confer diplomas, educational, literary, or academic degrees; that has a regular 34
633	633
634	634
635	635	LC001033 - Page 18 of 30
636	636	faculty, curriculum, and organized body of pupils or students in attendance throughout the usual 1
637	637	school year; that keeps and furnishes to students and others records required and accepted for 2
638	638	entrance to schools of secondary, collegiate, or graduate rank; and no part of the net earnings of 3
639	639	which inures to the benefit of any individual. 4
640	640	(19) Motor vehicle and adaptive equipment for persons with disabilities. 5
641	641	(i) From the sale of: (A) Special adaptations; (B) The component parts of the special 6
642	642	adaptations; or (C) A specially adapted motor vehicle; provided that the owner furnishes to the tax 7
643	643	administrator an affidavit of a licensed physician to the effect that the specially adapted motor 8
644	644	vehicle is necessary to transport a family member with a disability or where the vehicle has been 9
645	645	specially adapted to meet the specific needs of the person with a disability. This exemption applies 10
646	646	to not more than one motor vehicle owned and registered for personal, noncommercial use. 11
647	647	(ii) For the purpose of this subsection the term “special adaptations” includes, but is not 12
648	648	limited to: wheelchair lifts, wheelchair carriers, wheelchair ramps, wheelchair securements, hand 13
649	649	controls, steering devices, extensions, relocations, and crossovers of operator controls, power-14
650	650	assisted controls, raised tops or dropped floors, raised entry doors, or alternative signaling devices 15
651	651	to auditory signals. 16
652	652	(iii) From the sale of: (a) Special adaptations, (b) The component parts of the special 17
653	653	adaptations, for a “wheelchair accessible taxicab” as defined in § 39-14-1, and/or a “wheelchair 18
654	654	accessible public motor vehicle” as defined in § 39-14.1-1. 19
655	655	(iv) For the purpose of this subdivision the exemption for a “specially adapted motor 20
656	656	vehicle” means a use tax credit not to exceed the amount of use tax that would otherwise be due on 21
657	657	the motor vehicle, exclusive of any adaptations. The use tax credit is equal to the cost of the special 22
658	658	adaptations, including installation. 23
659	659	(20) Heating fuels. From the sale and from the storage, use, or other consumption in this 24
660	660	state of every type of heating fuel. 25
661	661	(21) Electricity and gas. From the sale and from the storage, use, or other consumption in 26
662	662	this state of electricity and gas. 27
663	663	(22) Manufacturing machinery and equipment. 28
664	664	(i) From the sale and from the storage, use, or other consumption in this state of tools, dies, 29
665	665	molds, machinery, equipment (including replacement parts), and related items to the extent used in 30
666	666	an industrial plant in connection with the actual manufacture, conversion, or processing of tangible 31
667	667	personal property, or to the extent used in connection with the actual manufacture, conversion, or 32
668	668	processing of computer software as that term is utilized in industry numbers 7371, 7372, and 7373 33
669	669	in the standard industrial classification manual prepared by the Technical Committee on Industrial 34
670	670
671	671
672	672	LC001033 - Page 19 of 30
673	673	Classification, Office of Statistical Standards, Executive Office of the President, United States 1
674	674	Bureau of the Budget, as revised from time to time, to be sold, or that machinery and equipment 2
675	675	used in the furnishing of power to an industrial manufacturing plant. For the purposes of this 3
676	676	subdivision, “industrial plant” means a factory at a fixed location primarily engaged in the 4
677	677	manufacture, conversion, or processing of tangible personal property to be sold in the regular 5
678	678	course of business; 6
679	679	(ii) Machinery and equipment and related items are not deemed to be used in connection 7
680	680	with the actual manufacture, conversion, or processing of tangible personal property, or in 8
681	681	connection with the actual manufacture, conversion, or processing of computer software as that 9
682	682	term is utilized in industry numbers 7371, 7372, and 7373 in the standard industrial classification 10
683	683	manual prepared by the Technical Committee on Industrial Classification, Office of Statistical 11
684	684	Standards, Executive Office of the President, United States Bureau of the Budget, as revised from 12
685	685	time to time, to be sold to the extent the property is used in administration or distribution operations; 13
686	686	(iii) Machinery and equipment and related items used in connection with the actual 14
687	687	manufacture, conversion, or processing of any computer software or any tangible personal property 15
688	688	that is not to be sold and that would be exempt under subdivision (7) or this subdivision if purchased 16
689	689	from a vendor or machinery and equipment and related items used during any manufacturing, 17
690	690	converting, or processing function is exempt under this subdivision even if that operation, function, 18
691	691	or purpose is not an integral or essential part of a continuous production flow or manufacturing 19
692	692	process; 20
693	693	(iv) Where a portion of a group of portable or mobile machinery is used in connection with 21
694	694	the actual manufacture, conversion, or processing of computer software or tangible personal 22
695	695	property to be sold, as previously defined, that portion, if otherwise qualifying, is exempt under 23
696	696	this subdivision even though the machinery in that group is used interchangeably and not otherwise 24
697	697	identifiable as to use. 25
698	698	(23) Trade-in value of motor vehicles. From the sale and from the storage, use, or other 26
699	699	consumption in this state of so much of the purchase price paid for a new or used automobile as is 27
700	700	allocated for a trade-in allowance on the automobile of the buyer given in trade to the seller, or of 28
701	701	the proceeds applicable only to the automobile as are received from the manufacturer of 29
702	702	automobiles for the repurchase of the automobile whether the repurchase was voluntary or not 30
703	703	towards the purchase of a new or used automobile by the buyer. For the purpose of this subdivision, 31
704	704	the word “automobile” means a private passenger automobile not used for hire and does not refer 32
705	705	to any other type of motor vehicle. 33
706	706	(24) Precious metal bullion. 34
707	707
708	708
709	709	LC001033 - Page 20 of 30
710	710	(i) From the sale and from the storage, use, or other consumption in this state of precious 1
711	711	metal bullion, substantially equivalent to a transaction in securities or commodities. 2
712	712	(ii) For purposes of this subdivision, “precious metal bullion” means any elementary 3
713	713	precious metal that has been put through a process of smelting or refining, including, but not limited 4
714	714	to: gold, silver, platinum, rhodium, and chromium, and that is in a state or condition that its value 5
715	715	depends upon its content and not upon its form. 6
716	716	(iii) The term does not include fabricated precious metal that has been processed or 7
717	717	manufactured for some one or more specific and customary industrial, professional, or artistic uses. 8
718	718	(25) Commercial vessels. From sales made to a commercial ship, barge, or other vessel of 9
719	719	fifty (50) tons burden or over, primarily engaged in interstate or foreign commerce, and from the 10
720	720	repair, alteration, or conversion of the vessels, and from the sale of property purchased for the use 11
721	721	of the vessels including provisions, supplies, and material for the maintenance and/or repair of the 12
722	722	vessels. 13
723	723	(26) Commercial fishing vessels. From the sale and from the storage, use, or other 14
724	724	consumption in this state of vessels and other watercraft that are in excess of five (5) net tons and 15
725	725	that are used exclusively for “commercial fishing,” as defined in this subdivision, and from the 16
726	726	repair, alteration, or conversion of those vessels and other watercraft, and from the sale of property 17
727	727	purchased for the use of those vessels and other watercraft including provisions, supplies, and 18
728	728	material for the maintenance and/or repair of the vessels and other watercraft and the boats nets, 19
729	729	cables, tackle, and other fishing equipment appurtenant to or used in connection with the 20
730	730	commercial fishing of the vessels and other watercraft. “Commercial fishing” means taking or 21
731	731	attempting to take any fish, shellfish, crustacea, or bait species with the intent of disposing of it for 22
732	732	profit or by sale, barter, trade, or in commercial channels. The term does not include subsistence 23
733	733	fishing, i.e., the taking for personal use and not for sale or barter; or sport fishing; but shall include 24
734	734	vessels and other watercraft with a Rhode Island party and charter boat license issued by the 25
735	735	department of environmental management pursuant to § 20-2-27.1 that meet the following criteria: 26
736	736	(i) The operator must have a current United States Coast Guard (U.S.C.G.) license to carry 27
737	737	passengers for hire; (ii) U.S.C.G. vessel documentation in the coast wide fishery trade; (iii) 28
738	738	U.S.C.G. vessel documentation as to proof of Rhode Island home port status or a Rhode Island boat 29
739	739	registration to prove Rhode Island home port status; and (iv) The vessel must be used as a 30
740	740	commercial passenger carrying fishing vessel to carry passengers for fishing. The vessel must be 31
741	741	able to demonstrate that at least fifty percent (50%) of its annual gross income derives from charters 32
742	742	or provides documentation of a minimum of one hundred (100) charter trips annually; and (v) The 33
743	743	vessel must have a valid Rhode Island party and charter boat license. The tax administrator shall 34
744	744
745	745
746	746	LC001033 - Page 21 of 30
747	747	implement the provisions of this subdivision by promulgating rules and regulations relating thereto. 1
748	748	(27) Clothing and footwear. From the sales of articles of clothing, including footwear, 2
749	749	intended to be worn or carried on or about the human body for sales prior to October 1, 2012. 3
750	750	Effective October 1, 2012, the exemption will apply to the sales of articles of clothing, including 4
751	751	footwear, intended to be worn or carried on or about the human body up to two hundred and fifty 5
752	752	dollars ($250) of the sales price per item. For the purposes of this section, “clothing or footwear” 6
753	753	does not include clothing accessories or equipment or special clothing or footwear primarily 7
754	754	designed for athletic activity or protective use as these terms are defined in § 44-18-7.1(f). In 8
755	755	recognition of the work being performed by the streamlined sales and use tax governing board, 9
756	756	upon passage of any federal law that authorizes states to require remote sellers to collect and remit 10
757	757	sales and use taxes, this unlimited exemption will apply as it did prior to October 1, 2012. The 11
758	758	unlimited exemption on sales of clothing and footwear shall take effect on the date that the state 12
759	759	requires remote sellers to collect and remit sales and use taxes. 13
760	760	(28) Water for residential use. From the sale and from the storage, use, or other 14
761	761	consumption in this state of water furnished for domestic use by occupants of residential premises. 15
762	762	(29) Bibles. [Unconstitutional; see Ahlburn v. Clark, 728 A.2d 449 (R.I. 1999); see Notes 16
763	763	to Decisions.] From the sale and from the storage, use, or other consumption in the state of any 17
764	764	canonized scriptures of any tax-exempt nonprofit religious organization including, but not limited 18
765	765	to, the Old Testament and the New Testament versions. 19
766	766	(30) Boats. 20
767	767	(i) From the sale of a boat or vessel to a bona fide nonresident of this state who does not 21
768	768	register the boat or vessel in this state or document the boat or vessel with the United States 22
769	769	government at a home port within the state, whether the sale or delivery of the boat or vessel is 23
770	770	made in this state or elsewhere; provided, that the nonresident transports the boat within thirty (30) 24
771	771	days after delivery by the seller outside the state for use thereafter solely outside the state. 25
772	772	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 26
773	773	require the seller of the boat or vessel to keep records of the sales to bona fide nonresidents as the 27
774	774	tax administrator deems reasonably necessary to substantiate the exemption provided in this 28
775	775	subdivision, including the affidavit of the seller that the buyer represented himself or herself to be 29
776	776	a bona fide nonresident of this state and of the buyer that he or she is a nonresident of this state. 30
777	777	(31) Youth activities equipment. From the sale, storage, use, or other consumption in this 31
778	778	state of items for not more than twenty dollars ($20.00) each by nonprofit Rhode Island 32
779	779	eleemosynary organizations, for the purposes of youth activities that the organization is formed to 33
780	780	sponsor and support; and by accredited elementary and secondary schools for the purposes of the 34
781	781
782	782
783	783	LC001033 - Page 22 of 30
784	784	schools or of organized activities of the enrolled students. 1
785	785	(32) Farm equipment. From the sale and from the storage or use of machinery and 2
786	786	equipment used directly for commercial farming and agricultural production; including, but not 3
787	787	limited to: tractors, ploughs, harrows, spreaders, seeders, milking machines, silage conveyors, 4
788	788	balers, bulk milk storage tanks, trucks with farm plates, mowers, combines, irrigation equipment, 5
789	789	greenhouses and greenhouse coverings, graders and packaging machines, tools and supplies and 6
790	790	other farming equipment, including replacement parts appurtenant to or used in connection with 7
791	791	commercial farming and tools and supplies used in the repair and maintenance of farming 8
792	792	equipment. “Commercial farming” means the keeping or boarding of five (5) or more horses or the 9
793	793	production within this state of agricultural products, including, but not limited to, field or orchard 10
794	794	crops, livestock, dairy, and poultry, or their products, where the keeping, boarding, or production 11
795	795	provides at least two thousand five hundred dollars ($2,500) in annual gross sales to the operator, 12
796	796	whether an individual, a group, a partnership, or a corporation for exemptions issued prior to July 13
797	797	1, 2002. For exemptions issued or renewed after July 1, 2002, there shall be two (2) levels. Level I 14
798	798	shall be based on proof of annual, gross sales from commercial farming of at least twenty-five 15
799	799	hundred dollars ($2,500) and shall be valid for purchases subject to the exemption provided in this 16
800	800	subdivision except for motor vehicles with an excise tax value of five thousand dollars ($5,000) or 17
801	801	greater. Level II shall be based on proof of annual gross sales from commercial farming of at least 18
802	802	ten thousand dollars ($10,000) or greater and shall be valid for purchases subject to the exemption 19
803	803	provided in this subdivision including motor vehicles with an excise tax value of five thousand 20
804	804	dollars ($5,000) or greater. For the initial issuance of the exemptions, proof of the requisite amount 21
805	805	of annual gross sales from commercial farming shall be required for the prior year; for any renewal 22
806	806	of an exemption granted in accordance with this subdivision at either level I or level II, proof of 23
807	807	gross annual sales from commercial farming at the requisite amount shall be required for each of 24
808	808	the prior two (2) years. Certificates of exemption issued or renewed after July 1, 2002, shall clearly 25
809	809	indicate the level of the exemption and be valid for four (4) years after the date of issue. This 26
810	810	exemption applies even if the same equipment is used for ancillary uses, or is temporarily used for 27
811	811	a non-farming or a non-agricultural purpose, but shall not apply to motor vehicles acquired after 28
812	812	July 1, 2002, unless the vehicle is a farm vehicle as defined pursuant to § 31-1-8 and is eligible for 29
813	813	registration displaying farm plates as provided for in § 31-3-31. 30
814	814	(33) Compressed air. From the sale and from the storage, use, or other consumption in the 31
815	815	state of compressed air. 32
816	816	(34) Flags. From the sale and from the storage, consumption, or other use in this state of 33
817	817	United States, Rhode Island or POW-MIA flags. 34
818	818
819	819
820	820	LC001033 - Page 23 of 30
821	821	(35) Motor vehicle and adaptive equipment to certain veterans. From the sale of a motor 1
822	822	vehicle and adaptive equipment to and for the use of a veteran with a service-connected loss of or 2
823	823	the loss of use of a leg, foot, hand, or arm, or any veteran who is a double amputee, whether service 3
824	824	connected or not. The motor vehicle must be purchased by and especially equipped for use by the 4
825	825	qualifying veteran. Certificate of exemption or refunds of taxes paid is granted under rules or 5
826	826	regulations that the tax administrator may prescribe. 6
827	827	(36) Textbooks. From the sale and from the storage, use, or other consumption in this state 7
828	828	of textbooks by an “educational institution,” as defined in subsection (18) of this section, and any 8
829	829	educational institution within the purview of § 16-63-9(4), and used textbooks by any purveyor. 9
830	830	(37) Tangible personal property and supplies used in on-site hazardous waste recycling, 10
831	831	reuse, or treatment. From the sale, storage, use, or other consumption in this state of tangible 11
832	832	personal property or supplies used or consumed in the operation of equipment, the exclusive 12
833	833	function of which is the recycling, reuse, or recovery of materials (other than precious metals, as 13
834	834	defined in subdivision (24)(ii) of this section) from the treatment of “hazardous wastes,” as defined 14
835	835	in § 23-19.1-4, where the “hazardous wastes” are generated in Rhode Island solely by the same 15
836	836	taxpayer and where the personal property is located at, in, or adjacent to a generating facility of the 16
837	837	taxpayer in Rhode Island. The taxpayer shall procure an order from the director of the department 17
838	838	of environmental management certifying that the equipment and/or supplies as used or consumed, 18
839	839	qualify for the exemption under this subdivision. If any information relating to secret processes or 19
840	840	methods of manufacture, production, or treatment is disclosed to the department of environmental 20
841	841	management only to procure an order, and is a “trade secret” as defined in § 28-21-10(b), it is not 21
842	842	open to public inspection or publicly disclosed unless disclosure is required under chapter 21 of 22
843	843	title 28 or chapter 24.4 of title 23. 23
844	844	(38) Promotional and product literature of boat manufacturers. From the sale and from the 24
845	845	storage, use, or other consumption of promotional and product literature of boat manufacturers 25
846	846	shipped to points outside of Rhode Island that either: (i) Accompany the product that is sold; (ii) 26
847	847	Are shipped in bulk to out-of-state dealers for use in the sale of the product; or (iii) Are mailed to 27
848	848	customers at no charge. 28
849	849	(39) Food items paid for by food stamps. From the sale and from the storage, use, or other 29
850	850	consumption in this state of eligible food items payment for which is properly made to the retailer 30
851	851	in the form of U.S. government food stamps issued in accordance with the Food Stamp Act of 1977, 31
852	852	7 U.S.C. § 2011 et seq. 32
853	853	(40) Transportation charges. From the sale or hiring of motor carriers as defined in § 39-33
854	854	12-2(12) to haul goods, when the contract or hiring cost is charged by a motor freight tariff filed 34
855	855
856	856
857	857	LC001033 - Page 24 of 30
858	858	with the Rhode Island public utilities commission on the number of miles driven or by the number 1
859	859	of hours spent on the job. 2
860	860	(41) Trade-in value of boats. From the sale and from the storage, use, or other consumption 3
861	861	in this state of so much of the purchase price paid for a new or used boat as is allocated for a trade-4
862	862	in allowance on the boat of the buyer given in trade to the seller or of the proceeds applicable only 5
863	863	to the boat as are received from an insurance claim as a result of a stolen or damaged boat, towards 6
864	864	the purchase of a new or used boat by the buyer. 7
865	865	(42) Equipment used for research and development. From the sale and from the storage, 8
866	866	use, or other consumption of equipment to the extent used for research and development purposes 9
867	867	by a qualifying firm. For the purposes of this subsection, “qualifying firm” means a business for 10
868	868	which the use of research and development equipment is an integral part of its operation and 11
869	869	“equipment” means scientific equipment, computers, software, and related items. 12
870	870	(43) Coins. From the sale and from the other consumption in this state of coins having 13
871	871	numismatic or investment value. 14
872	872	(44) Farm structure construction materials. Lumber, hardware, and other materials used in 15
873	873	the new construction of farm structures, including production facilities such as, but not limited to: 16
874	874	farrowing sheds, free stall and stanchion barns, milking parlors, silos, poultry barns, laying houses, 17
875	875	fruit and vegetable storages, rooting cellars, propagation rooms, greenhouses, packing rooms, 18
876	876	machinery storage, seasonal farm worker housing, certified farm markets, bunker and trench silos, 19
877	877	feed storage sheds, and any other structures used in connection with commercial farming. 20
878	878	(45) Telecommunications carrier access service. Carrier access service or 21
879	879	telecommunications service when purchased by a telecommunications company from another 22
880	880	telecommunications company to facilitate the provision of telecommunications service. 23
881	881	(46) Boats or vessels brought into the state exclusively for winter storage, maintenance, 24
882	882	repair, or sale. Notwithstanding the provisions of §§ 44-18-10, 44-18-11 and 44-18-20, the tax 25
883	883	imposed by § 44-18-20 is not applicable for the period commencing on the first day of October in 26
884	884	any year up to and including the 30th day of April next succeeding with respect to the use of any 27
885	885	boat or vessel within this state exclusively for purposes of: (i) Delivery of the vessel to a facility in 28
886	886	this state for storage, including dry storage and storage in water by means of apparatus preventing 29
887	887	ice damage to the hull, maintenance, or repair; (ii) The actual process of storage, maintenance, or 30
888	888	repair of the boat or vessel; or (iii) Storage for the purpose of selling the boat or vessel. 31
889	889	(47) Jewelry display product. From the sale and from the storage, use, or other 32
890	890	consumption in this state of tangible personal property used to display any jewelry product; 33
891	891	provided that title to the jewelry display product is transferred by the jewelry manufacturer or seller 34
892	892
893	893
894	894	LC001033 - Page 25 of 30
895	895	and that the jewelry display product is shipped out of state for use solely outside the state and is not 1
896	896	returned to the jewelry manufacturer or seller. 2
897	897	(48) Boats or vessels generally. Notwithstanding the provisions of this chapter, the tax 3
898	898	imposed by §§ 44-18-20 and 44-18-18 shall not apply with respect to the sale and to the storage, 4
899	899	use, or other consumption in this state of any new or used boat. The exemption provided for in this 5
900	900	subdivision does not apply after October 1, 1993, unless prior to October 1, 1993, the federal ten 6
901	901	percent (10%) surcharge on luxury boats is repealed. 7
902	902	(49) Banks and regulated investment companies interstate toll-free calls. Notwithstanding 8
903	903	the provisions of this chapter, the tax imposed by this chapter does not apply to the furnishing of 9
904	904	interstate and international, toll-free terminating telecommunication service that is used directly 10
905	905	and exclusively by or for the benefit of an eligible company as defined in this subdivision; provided 11
906	906	that an eligible company employs on average during the calendar year no less than five hundred 12
907	907	(500) “full-time equivalent employees” as that term is defined in § 42-64.5-2. For purposes of this 13
908	908	section, an “eligible company” means a “regulated investment company” as that term is defined in 14
909	909	the Internal Revenue Code of 1986, 26 U.S.C. § 851, or a corporation to the extent the service is 15
910	910	provided, directly or indirectly, to or on behalf of a regulated investment company, an employee 16
911	911	benefit plan, a retirement plan or a pension plan, or a state-chartered bank. 17
912	912	(50) Mobile and manufactured homes generally. From the sale and from the storage, use, 18
913	913	or other consumption in this state of mobile and/or manufactured homes as defined and subject to 19
914	914	taxation pursuant to the provisions of chapter 44 of title 31. 20
915	915	(51) Manufacturing business reconstruction materials. 21
916	916	(i) From the sale and from the storage, use, or other consumption in this state of lumber, 22
917	917	hardware, and other building materials used in the reconstruction of a manufacturing business 23
918	918	facility that suffers a disaster, as defined in this subdivision, in this state. “Disaster” means any 24
919	919	occurrence, natural or otherwise, that results in the destruction of sixty percent (60%) or more of 25
920	920	an operating manufacturing business facility within this state. “Disaster” does not include any 26
921	921	damage resulting from the willful act of the owner of the manufacturing business facility. 27
922	922	(ii) Manufacturing business facility includes, but is not limited to, the structures housing 28
923	923	the production and administrative facilities. 29
924	924	(iii) In the event a manufacturer has more than one manufacturing site in this state, the sixty 30
925	925	percent (60%) provision applies to the damages suffered at that one site. 31
926	926	(iv) To the extent that the costs of the reconstruction materials are reimbursed by insurance, 32
927	927	this exemption does not apply. 33
928	928	(52) Tangible personal property and supplies used in the processing or preparation of floral 34
929	929
930	930
931	931	LC001033 - Page 26 of 30
932	932	products and floral arrangements. From the sale, storage, use, or other consumption in this state of 1
933	933	tangible personal property or supplies purchased by florists, garden centers, or other like producers 2
934	934	or vendors of flowers, plants, floral products, and natural and artificial floral arrangements that are 3
935	935	ultimately sold with flowers, plants, floral products, and natural and artificial floral arrangements 4
936	936	or are otherwise used in the decoration, fabrication, creation, processing, or preparation of flowers, 5
937	937	plants, floral products, or natural and artificial floral arrangements, including descriptive labels, 6
938	938	stickers, and cards affixed to the flower, plant, floral product, or arrangement, artificial flowers, 7
939	939	spray materials, floral paint and tint, plant shine, flower food, insecticide, and fertilizers. 8
940	940	(53) Horse food products. From the sale and from the storage, use, or other consumption 9
941	941	in this state of horse food products purchased by a person engaged in the business of the boarding 10
942	942	of horses. 11
943	943	(54) Non-motorized recreational vehicles sold to nonresidents. 12
944	944	(i) From the sale, subsequent to June 30, 2003, of a non-motorized recreational vehicle to 13
945	945	a bona fide nonresident of this state who does not register the non-motorized recreational vehicle 14
946	946	in this state, whether the sale or delivery of the non-motorized recreational vehicle is made in this 15
947	947	state or at the place of residence of the nonresident; provided that a non-motorized recreational 16
948	948	vehicle sold to a bona fide nonresident whose state of residence does not allow a like exemption to 17
949	949	its nonresidents is not exempt from the tax imposed under § 44-18-20; provided, further, that in 18
950	950	that event the bona fide nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate 19
951	951	that would be imposed in his or her state of residence not to exceed the rate that would have been 20
952	952	imposed under § 44-18-20. Notwithstanding any other provisions of law, a licensed, non-motorized 21
953	953	recreational vehicle dealer shall add and collect the tax required under this subdivision and remit 22
954	954	the tax to the tax administrator under the provisions of chapters 18 and 19 of this title. Provided, 23
955	955	that when a Rhode Island licensed, non-motorized recreational vehicle dealer is required to add and 24
956	956	collect the sales and use tax on the sale of a non-motorized recreational vehicle to a bona fide 25
957	957	nonresident as provided in this section, the dealer in computing the tax takes into consideration the 26
958	958	law of the state of the nonresident as it relates to the trade-in of motor vehicles. 27
959	959	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 28
960	960	require any licensed, non-motorized recreational vehicle dealer to keep records of sales to bona fide 29
961	961	nonresidents as the tax administrator deems reasonably necessary to substantiate the exemption 30
962	962	provided in this subdivision, including the affidavit of a licensed, non-motorized recreational 31
963	963	vehicle dealer that the purchaser of the non-motorized recreational vehicle was the holder of, and 32
964	964	had in his or her possession a valid out-of-state non-motorized recreational vehicle registration or 33
965	965	a valid out-of-state driver’s license. 34
966	966
967	967
968	968	LC001033 - Page 27 of 30
969	969	(iii) Any nonresident who registers a non-motorized recreational vehicle in this state within 1
970	970	ninety (90) days of the date of its sale to him or her is deemed to have purchased the non-motorized 2
971	971	recreational vehicle for use, storage, or other consumption in this state, and is subject to, and liable 3
972	972	for, the use tax imposed under the provisions of § 44-18-20. 4
973	973	(iv) “Non-motorized recreational vehicle” means any portable dwelling designed and 5
974	974	constructed to be used as a temporary dwelling for travel, camping, recreational, and vacation use 6
975	975	that is eligible to be registered for highway use, including, but not limited to, “pick-up coaches” or 7
976	976	“pick-up campers,” “travel trailers,” and “tent trailers” as those terms are defined in chapter 1 of 8
977	977	title 31. 9
978	978	(55) Sprinkler and fire alarm systems in existing buildings. From the sale in this state of 10
979	979	sprinkler and fire alarm systems; emergency lighting and alarm systems; and the materials 11
980	980	necessary and attendant to the installation of those systems that are required in buildings and 12
981	981	occupancies existing therein in July 2003 in order to comply with any additional requirements for 13
982	982	such buildings arising directly from the enactment of the Comprehensive Fire Safety Act of 2003 14
983	983	and that are not required by any other provision of law or ordinance or regulation adopted pursuant 15
984	984	to that act. The exemption provided in this subdivision shall expire on December 31, 2008. 16
985	985	(56) Aircraft. Notwithstanding the provisions of this chapter, the tax imposed by §§ 44-17
986	986	18-18 and 44-18-20 shall not apply with respect to the sale and to the storage, use, or other 18
987	987	consumption in this state of any new or used aircraft or aircraft parts. 19
988	988	(57) Renewable energy products. Notwithstanding any other provisions of Rhode Island 20
989	989	general laws, the following products shall also be exempt from sales tax: solar photovoltaic 21
990	990	modules or panels, or any module or panel that generates electricity from light; solar thermal 22
991	991	collectors, including, but not limited to, those manufactured with flat glass plates, extruded plastic, 23
992	992	sheet metal, and/or evacuated tubes; geothermal heat pumps, including both water-to-water and 24
993	993	water-to-air type pumps; wind turbines; towers used to mount wind turbines if specified by or sold 25
994	994	by a wind turbine manufacturer; DC to AC inverters that interconnect with utility power lines; and 26
995	995	manufactured mounting racks and ballast pans for solar collector, module, or panel installation. Not 27
996	996	to include materials that could be fabricated into such racks; monitoring and control equipment, if 28
997	997	specified or supplied by a manufacturer of solar thermal, solar photovoltaic, geothermal, or wind 29
998	998	energy systems or if required by law or regulation for such systems but not to include pumps, fans 30
999	999	or plumbing or electrical fixtures unless shipped from the manufacturer affixed to, or an integral 31
1000	1000	part of, another item specified on this list; and solar storage tanks that are part of a solar domestic 32
1001	1001	hot water system or a solar space heating system. If the tank comes with an external heat exchanger 33
1002	1002	it shall also be tax exempt, but a standard hot water tank is not exempt from state sales tax. 34
1003	1003
1004	1004
1005	1005	LC001033 - Page 28 of 30
1006	1006	(58) Returned property. The amount charged for property returned by customers upon 1
1007	1007	rescission of the contract of sale when the entire amount exclusive of handling charges paid for the 2
1008	1008	property is refunded in either cash or credit, and where the property is returned within one hundred 3
1009	1009	twenty (120) days from the date of delivery. 4
1010	1010	(59) Dietary supplements. From the sale and from the storage, use, or other consumption 5
1011	1011	of dietary supplements as defined in § 44-18-7.1()(v), sold on prescriptions. 6
1012	1012	(60) Blood. From the sale and from the storage, use, or other consumption of human blood. 7
1013	1013	(61) Agricultural products for human consumption. From the sale and from the storage, 8
1014	1014	use, or other consumption of livestock and poultry of the kinds of products that ordinarily constitute 9
1015	1015	food for human consumption and of livestock of the kind the products of which ordinarily constitute 10
1016	1016	fibers for human use. 11
1017	1017	(62) Diesel emission control technology. From the sale and use of diesel retrofit 12
1018	1018	technology that is required by § 31-47.3-4. 13
1019	1019	(63) Feed for certain animals used in commercial farming. From the sale of feed for 14
1020	1020	animals as described in subsection (61) of this section. 15
1021	1021	(64) Alcoholic beverages. From the sale and storage, use, or other consumption in this 16
1022	1022	state by a Class A licensee of alcoholic beverages, as defined in § 44-18-7.1, excluding beer and 17
1023	1023	malt beverages; provided, further, notwithstanding § 6-13-1 or any other general or public law to 18
1024	1024	the contrary, alcoholic beverages, as defined in § 44-18-7.1, shall not be subject to minimum 19
1025	1025	markup. 20
1026	1026	(65) Seeds and plants used to grow food and food ingredients. From the sale, storage, use, 21
1027	1027	or other consumption in this state of seeds and plants used to grow food and food ingredients as 22
1028	1028	defined in § 44-18-7.1()(i). “Seeds and plants used to grow food and food ingredients” shall not 23
1029	1029	include marijuana seeds or plants. 24
1030	1030	(66) Feminine hygiene products. From the sale and from the storage, use, or other 25
1031	1031	consumption of tampons, panty liners, menstrual cups, sanitary napkins, and other similar products 26
1032	1032	the principal use of which is feminine hygiene in connection with the menstrual cycle. 27
1033	1033	(67) “Breast pump collection and storage supplies” means items of tangible personal 28
1034	1034	property used in conjunction with a breast pump to collect milk expressed from a human breast and 29
1035	1035	to store collected milk until it is ready for consumption. “Breast pump collection and storage 30
1036	1036	supplies” include, but are not limited to, breast shields and breast shield connectors; breast pump 31
1037	1037	tubes and tubing adaptors; breast pump valves and membranes; backflow protectors and backflow 32
1038	1038	protector adaptors; bottles and bottle caps specific to the operation of the breast pump; breast milk 33
1039	1039	storage bags; and related items sold as part of a breast pump kit pre-packaged by the breast pump 34
1040	1040
1041	1041
1042	1042	LC001033 - Page 29 of 30
1043	1043	manufacturer. “Breast pump collection and storage supplies” does not include: bottles and bottle 1
1044	1044	caps not specific to the operation of the breast pump; breast pump travel bags and other similar 2
1045	1045	carrying accessories, including ice packs, labels, and other similar products, unless sold as part of 3
1046	1046	a breast pump kit pre-packed by the breast pump manufacturer; breast pump cleaning supplies, 4
1047	1047	unless sold as part of a breast pump kit pre-packaged by the breast pump manufacturer; nursing 5
1048	1048	bras, bra pads, breast shells, and other similar products; and creams, ointments, and other similar 6
1049	1049	products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples. 7
1050	1050	(68) Trade-in value of motorcycles. From the sale and from the storage, use, or other 8
1051	1051	consumption in this state of so much of the purchase price paid for a new or used motorcycle as is 9
1052	1052	allocated for a trade-in allowance on the motorcycle of the buyer given in trade to the seller, or of 10
1053	1053	the proceeds applicable only to the motorcycle as are received from the manufacturer of 11
1054	1054	motorcycles for the repurchase of the motorcycle whether the repurchase was voluntary or not 12
1055	1055	towards the purchase of a new or used motorcycle by the buyer. For the purpose of this subsection, 13
1056	1056	the word “motorcycle” means a motorcycle not used for hire and does not refer to any other type 14
1057	1057	of motor vehicle. 15
1058	1058	SECTION 2. This act shall take effect upon passage. 16
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1060	1060	LC001033
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1062	1062
1063	1063
1064	1064	LC001033 - Page 30 of 30
1065	1065	EXPLANATION
1066	1066	BY THE LEGISLATIVE COUNCIL
1067	1067	OF
1068	1068	A N A C T
1069	1069	RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND
1070	1070	COMPUTATION
1071	1071	***
1072	1072	This act would exempt from the sales and use tax the sale of beer and malt beverages at 1
1073	1073	retail. 2
1074	1074	This act would take effect upon passage. 3
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1076	1076	LC001033
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1078	1078