Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0557 Compare Versions

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

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5	5	2023 -- S 0557
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7	7	LC002036
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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 Lawson, McKenney, Euer, Lauria, DiMario, Acosta, Britto,
18	18	Cano, and Mack
19	19	Date Introduced: March 07, 2023
20	20	Referred To: Senate Finance
21	21
22	22
23	23	It is enacted by the General Assembly as follows:
24	24	SECTION 1. Section 44-18-30 of the General Laws in Chapter 44-18 entitled "Sales and 1
25	25	Use Taxes — Liability and Computation" is hereby amended to read as follows: 2
26	26	44-18-30. Gross receipts exempt from sales and use taxes. 3
27	27	There are exempted from the taxes imposed by this chapter the following gross receipts: 4
28	28	(1) Sales and uses beyond constitutional power of state. From the sale and from the storage, 5
29	29	use, or other consumption in this state of tangible personal property the gross receipts from the sale 6
30	30	of which, or the storage, use, or other consumption of which, this state is prohibited from taxing 7
31	31	under the Constitution of the United States or under the constitution of this state. 8
32	32	(2) Newspapers. 9
33	33	(i) From the sale and from the storage, use, or other consumption in this state of any 10
34	34	newspaper. 11
35	35	(ii) “Newspaper” means an unbound publication printed on newsprint that contains news, 12
36	36	editorial comment, opinions, features, advertising matter, and other matters of public interest. 13
37	37	(iii) “Newspaper” does not include a magazine, handbill, circular, flyer, sales catalog, or 14
38	38	similar item unless the item is printed for, and distributed as, a part of a newspaper. 15
39	39	(3) School meals. From the sale and from the storage, use, or other consumption in this 16
40	40	state of meals served by public, private, or parochial schools, school districts, colleges, universities, 17
41	41	student organizations, and parent-teacher associations to the students or teachers of a school, 18
42	42
43	43
44	44	LC002036 - Page 2 of 19
45	45	college, or university whether the meals are served by the educational institutions or by a food 1
46	46	service or management entity under contract to the educational institutions. 2
47	47	(4) Containers. 3
48	48	(i) From the sale and from the storage, use, or other consumption in this state of: 4
49	49	(A) Non-returnable containers, including boxes, paper bags, and wrapping materials that 5
50	50	are biodegradable and all bags and wrapping materials utilized in the medical and healing arts, 6
51	51	when sold without the contents to persons who place the contents in the container and sell the 7
52	52	contents with the container. 8
53	53	(B) Containers when sold with the contents if the sale price of the contents is not required 9
54	54	to be included in the measure of the taxes imposed by this chapter. 10
55	55	(C) Returnable containers when sold with the contents in connection with a retail sale of 11
56	56	the contents or when resold for refilling. 12
57	57	(D) Keg and barrel containers, whether returnable or not, when sold to alcoholic beverage 13
58	58	producers who place the alcoholic beverages in the containers. 14
59	59	(ii) As used in this subdivision, the term “returnable containers” means containers of a kind 15
60	60	customarily returned by the buyer of the contents for reuse. All other containers are “non-returnable 16
61	61	containers.” 17
62	62	(5)(i) Charitable, educational, and religious organizations. From the sale to, as in defined 18
63	63	in this section, and from the storage, use, and other consumption in this state, or any other state of 19
64	64	the United States of America, of tangible personal property by hospitals not operated for a profit; 20
65	65	“educational institutions” as defined in subdivision (18) not operated for a profit; churches, 21
66	66	orphanages, and other institutions or organizations operated exclusively for religious or charitable 22
67	67	purposes; interest-free loan associations not operated for profit; nonprofit, organized sporting 23
68	68	leagues and associations and bands for boys and girls under the age of nineteen (19) years; the 24
69	69	following vocational student organizations that are state chapters of national vocational student 25
70	70	organizations: Distributive Education Clubs of America (DECA); Future Business Leaders of 26
71	71	America, Phi Beta Lambda (FBLA/PBL); Future Farmers of America (FFA); Future Homemakers 27
72	72	of America/Home Economics Related Occupations (FHA/HERD); Vocational Industrial Clubs of 28
73	73	America (VICA); organized nonprofit golden age and senior citizens clubs for men and women; 29
74	74	and parent-teacher associations; and from the sale, storage, use, and other consumption in this state, 30
75	75	of and by the Industrial Foundation of Burrillville, a Rhode Island domestic nonprofit corporation. 31
76	76	(ii) In the case of contracts entered into with the federal government, its agencies, or 32
77	77	instrumentalities, this state, or any other state of the United States of America, its agencies, any 33
78	78	city, town, district, or other political subdivision of the states; hospitals not operated for profit; 34
79	79
80	80
81	81	LC002036 - Page 3 of 19
82	82	educational institutions not operated for profit; churches, orphanages, and other institutions or 1
83	83	organizations operated exclusively for religious or charitable purposes, the contractor may purchase 2
84	84	such materials and supplies (materials and/or supplies are defined as those that are essential to the 3
85	85	project) that are to be utilized in the construction of the projects being performed under the contracts 4
86	86	without payment of the tax. 5
87	87	(iii) The contractor shall not charge any sales or use tax to any exempt agency, institution, 6
88	88	or organization but shall in that instance provide his or her suppliers with certificates in the form 7
89	89	as determined by the division of taxation showing the reason for exemption and the contractor’s 8
90	90	records must substantiate the claim for exemption by showing the disposition of all property so 9
91	91	purchased. If any property is then used for a nonexempt purpose, the contractor must pay the tax 10
92	92	on the property used. 11
93	93	(6) Gasoline. From the sale and from the storage, use, or other consumption in this state 12
94	94	of: (i) Gasoline and other products taxed under chapter 36 of title 31 and (ii) Fuels used for the 13
95	95	propulsion of airplanes. 14
96	96	(7) Purchase for manufacturing purposes. 15
97	97	(i) From the sale and from the storage, use, or other consumption in this state of computer 16
98	98	software, tangible personal property, electricity, natural gas, artificial gas, steam, refrigeration, and 17
99	99	water, when the property or service is purchased for the purpose of being manufactured into a 18
100	100	finished product for resale and becomes an ingredient, component, or integral part of the 19
101	101	manufactured, compounded, processed, assembled, or prepared product, or if the property or 20
102	102	service is consumed in the process of manufacturing for resale computer software, tangible personal 21
103	103	property, electricity, natural gas, artificial gas, steam, refrigeration, or water. 22
104	104	(ii) “Consumed” means destroyed, used up, or worn out to the degree or extent that the 23
105	105	property cannot be repaired, reconditioned, or rendered fit for further manufacturing use. 24
106	106	(iii) “Consumed” includes mere obsolescence. 25
107	107	(iv) “Manufacturing” means and includes: manufacturing, compounding, processing, 26
108	108	assembling, preparing, or producing. 27
109	109	(v) “Process of manufacturing” means and includes all production operations performed in 28
110	110	the producing or processing room, shop, or plant, insofar as the operations are a part of and 29
111	111	connected with the manufacturing for resale of tangible personal property, electricity, natural gas, 30
112	112	artificial gas, steam, refrigeration, or water and all production operations performed insofar as the 31
113	113	operations are a part of and connected with the manufacturing for resale of computer software. 32
114	114	(vi) “Process of manufacturing” does not mean or include administration operations such 33
115	115	as general office operations, accounting, collection, or sales promotion, nor does it mean or include 34
116	116
117	117
118	118	LC002036 - Page 4 of 19
119	119	distribution operations that occur subsequent to production operations, such as handling, storing, 1
120	120	selling, and transporting the manufactured products, even though the administration and 2
121	121	distribution operations are performed by, or in connection with, a manufacturing business. 3
122	122	(8) State and political subdivisions. From the sale to, and from the storage, use, or other 4
123	123	consumption by, this state, any city, town, district, or other political subdivision of this state. Every 5
124	124	redevelopment agency created pursuant to chapter 31 of title 45 is deemed to be a subdivision of 6
125	125	the municipality where it is located. 7
126	126	(9) Food and food ingredients. From the sale and storage, use, or other consumption in this 8
127	127	state of food and food ingredients as defined in § 44-18-7.1(l). 9
128	128	For the purposes of this exemption “food and food ingredients” shall not include candy, 10
129	129	soft drinks, dietary supplements, alcoholic beverages, tobacco, food sold through vending 11
130	130	machines, or prepared food, as those terms are defined in § 44-18-7.1, unless the prepared food is: 12
131	131	(i) Sold by a seller whose primary NAICS classification is manufacturing in sector 311, 13
132	132	except sub-sector 3118 (bakeries); 14
133	133	(ii) Sold in an unheated state by weight or volume as a single item; 15
134	134	(iii) Bakery items, including: bread, rolls, buns, biscuits, bagels, croissants, pastries, 16
135	135	donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, tortillas; and 17
136	136	is not sold with utensils provided by the seller, including: plates, knives, forks, spoons, 18
137	137	glasses, cups, napkins, or straws. 19
138	138	(10) Medicines, drugs, and durable medical equipment. From the sale and from the storage, 20
139	139	use, or other consumption in this state, of: 21
140	140	(i) “Drugs” as defined in § 44-18-7.1(h)(i), sold on prescriptions, medical oxygen, and 22
141	141	insulin whether or not sold on prescription. For purposes of this exemption drugs shall not include 23
142	142	over-the-counter drugs and grooming and hygiene products as defined in § 44-18-7.1(h)(iii). 24
143	143	(ii) Durable medical equipment as defined in § 44-18-7.1(k) for home use only, including, 25
144	144	but not limited to: syringe infusers, ambulatory drug delivery pumps, hospital beds, convalescent 26
145	145	chairs, and chair lifts. Supplies used in connection with syringe infusers and ambulatory drug 27
146	146	delivery pumps that are sold on prescription to individuals to be used by them to dispense or 28
147	147	administer prescription drugs, and related ancillary dressings and supplies used to dispense or 29
148	148	administer prescription drugs, shall also be exempt from tax. 30
149	149	(11) Prosthetic devices and mobility enhancing equipment. From the sale and from the 31
150	150	storage, use, or other consumption in this state, of prosthetic devices as defined in § 44-18-7.1(t), 32
151	151	sold on prescription, including, but not limited to: artificial limbs, dentures, spectacles, eyeglasses, 33
152	152	and artificial eyes; artificial hearing devices and hearing aids, whether or not sold on prescription; 34
153	153
154	154
155	155	LC002036 - Page 5 of 19
156	156	and mobility enhancing equipment as defined in § 44-18-7.1(p), including wheelchairs, crutches, 1
157	157	and canes. 2
158	158	(12) Coffins, caskets, urns, shrouds and burial garments. From the sale and from the 3
159	159	storage, use, or other consumption in this state of coffins, caskets, burial containers, urns, urn liners, 4
160	160	urn vaults, grave liners, grave vaults, burial tent setups, prayer cards, shrouds, and other burial 5
161	161	garments that are ordinarily sold by a funeral director as part of the business of funeral directing. 6
162	162	(13) Motor vehicles sold to nonresidents. 7
163	163	(i) From the sale, subsequent to June 30, 1958, of a motor vehicle to a bona fide nonresident 8
164	164	of this state who does not register the motor vehicle in this state, whether the sale or delivery of the 9
165	165	motor vehicle is made in this state or at the place of residence of the nonresident. A motor vehicle 10
166	166	sold to a bona fide nonresident whose state of residence does not allow a like exemption to its 11
167	167	nonresidents is not exempt from the tax imposed under § 44-18-20. In that event, the bona fide 12
168	168	nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate that would be imposed 13
169	169	in his or her state of residence not to exceed the rate that would have been imposed under § 44-18-14
170	170	20. Notwithstanding any other provisions of law, a licensed motor vehicle dealer shall add and 15
171	171	collect the tax required under this subdivision and remit the tax to the tax administrator under the 16
172	172	provisions of chapters 18 and 19 of this title. When a Rhode Island licensed, motor vehicle dealer 17
173	173	is required to add and collect the sales and use tax on the sale of a motor vehicle to a bona fide 18
174	174	nonresident as provided in this section, the dealer in computing the tax takes into consideration the 19
175	175	law of the state of the nonresident as it relates to the trade-in of motor vehicles. 20
176	176	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 21
177	177	require any licensed motor vehicle dealer to keep records of sales to bona fide nonresidents as the 22
178	178	tax administrator deems reasonably necessary to substantiate the exemption provided in this 23
179	179	subdivision, including the affidavit of a licensed motor vehicle dealer that the purchaser of the 24
180	180	motor vehicle was the holder of, and had in his or her possession a valid out-of-state motor vehicle 25
181	181	registration or a valid out-of-state driver’s license. 26
182	182	(iii) Any nonresident who registers a motor vehicle in this state within ninety (90) days of 27
183	183	the date of its sale to him or her is deemed to have purchased the motor vehicle for use, storage, or 28
184	184	other consumption in this state, and is subject to, and liable for, the use tax imposed under the 29
185	185	provisions of § 44-18-20. 30
186	186	(14) Sales in public buildings by blind people. From the sale and from the storage, use, or 31
187	187	other consumption in all public buildings in this state of all products or wares by any person 32
188	188	licensed under § 40-9-11.1. 33
189	189	(15) Air and water pollution control facilities. From the sale, storage, use, or other 34
190	190
191	191
192	192	LC002036 - Page 6 of 19
193	193	consumption in this state of tangible personal property or supplies acquired for incorporation into 1
194	194	or used and consumed in the operation of a facility, the primary purpose of which is to aid in the 2
195	195	control of the pollution or contamination of the waters or air of the state, as defined in chapter 12 3
196	196	of title 46 and chapter 23 of title 23, respectively, and that has been certified as approved for that 4
197	197	purpose by the director of environmental management. The director of environmental management 5
198	198	may certify to a portion of the tangible personal property or supplies acquired for incorporation 6
199	199	into those facilities or used and consumed in the operation of those facilities to the extent that that 7
200	200	portion has as its primary purpose the control of the pollution or contamination of the waters or air 8
201	201	of this state. As used in this subdivision, “facility” means any land, facility, device, building, 9
202	202	machinery, or equipment. 10
203	203	(16) Camps. From the rental charged for living quarters, or sleeping, or housekeeping 11
204	204	accommodations at camps or retreat houses operated by religious, charitable, educational, or other 12
205	205	organizations and associations mentioned in subsection (5), or by privately owned and operated 13
206	206	summer camps for children. 14
207	207	(17) Certain institutions. From the rental charged for living or sleeping quarters in an 15
208	208	institution licensed by the state for the hospitalization, custodial, or nursing care of human beings. 16
209	209	(18) Educational institutions. From the rental charged by any educational institution for 17
210	210	living quarters, or sleeping, or housekeeping accommodations or other rooms or accommodations 18
211	211	to any student or teacher necessitated by attendance at an educational institution. “Educational 19
212	212	institution” as used in this section means an institution of learning not operated for profit that is 20
213	213	empowered to confer diplomas, educational, literary, or academic degrees; that has a regular 21
214	214	faculty, curriculum, and organized body of pupils or students in attendance throughout the usual 22
215	215	school year; that keeps and furnishes to students and others records required and accepted for 23
216	216	entrance to schools of secondary, collegiate, or graduate rank; and no part of the net earnings of 24
217	217	which inures to the benefit of any individual. 25
218	218	(19) Motor vehicle and adaptive equipment for persons with disabilities. 26
219	219	(i) From the sale of: (A) Special adaptations; (B) The component parts of the special 27
220	220	adaptations; or (C) A specially adapted motor vehicle; provided that the owner furnishes to the tax 28
221	221	administrator an affidavit of a licensed physician to the effect that the specially adapted motor 29
222	222	vehicle is necessary to transport a family member with a disability or where the vehicle has been 30
223	223	specially adapted to meet the specific needs of the person with a disability. This exemption applies 31
224	224	to not more than one motor vehicle owned and registered for personal, noncommercial use. 32
225	225	(ii) For the purpose of this subsection the term “special adaptations” includes, but is not 33
226	226	limited to: wheelchair lifts, wheelchair carriers, wheelchair ramps, wheelchair securements, hand 34
227	227
228	228
229	229	LC002036 - Page 7 of 19
230	230	controls, steering devices, extensions, relocations, and crossovers of operator controls, power-1
231	231	assisted controls, raised tops or dropped floors, raised entry doors, or alternative signaling devices 2
232	232	to auditory signals. 3
233	233	(iii) From the sale of: (a) Special adaptations, (b) The component parts of the special 4
234	234	adaptations, for a “wheelchair accessible taxicab” as defined in § 39-14-1, and/or a “wheelchair 5
235	235	accessible public motor vehicle” as defined in § 39-14.1-1. 6
236	236	(iv) For the purpose of this subdivision the exemption for a “specially adapted motor 7
237	237	vehicle” means a use tax credit not to exceed the amount of use tax that would otherwise be due on 8
238	238	the motor vehicle, exclusive of any adaptations. The use tax credit is equal to the cost of the special 9
239	239	adaptations, including installation. 10
240	240	(20) Heating fuels. From the sale and from the storage, use, or other consumption in this 11
241	241	state of every type of heating fuel. 12
242	242	(21) Electricity and gas. From the sale and from the storage, use, or other consumption in 13
243	243	this state of electricity and gas. 14
244	244	(22) Manufacturing machinery and equipment. 15
245	245	(i) From the sale and from the storage, use, or other consumption in this state of tools, dies, 16
246	246	molds, machinery, equipment (including replacement parts), and related items to the extent used in 17
247	247	an industrial plant in connection with the actual manufacture, conversion, or processing of tangible 18
248	248	personal property, or to the extent used in connection with the actual manufacture, conversion, or 19
249	249	processing of computer software as that term is utilized in industry numbers 7371, 7372, and 7373 20
250	250	in the standard industrial classification manual prepared by the Technical Committee on Industrial 21
251	251	Classification, Office of Statistical Standards, Executive Office of the President, United States 22
252	252	Bureau of the Budget, as revised from time to time, to be sold, or that machinery and equipment 23
253	253	used in the furnishing of power to an industrial manufacturing plant. For the purposes of this 24
254	254	subdivision, “industrial plant” means a factory at a fixed location primarily engaged in the 25
255	255	manufacture, conversion, or processing of tangible personal property to be sold in the regular 26
256	256	course of business; 27
257	257	(ii) Machinery and equipment and related items are not deemed to be used in connection 28
258	258	with the actual manufacture, conversion, or processing of tangible personal property, or in 29
259	259	connection with the actual manufacture, conversion, or processing of computer software as that 30
260	260	term is utilized in industry numbers 7371, 7372, and 7373 in the standard industrial classification 31
261	261	manual prepared by the Technical Committee on Industrial Classification, Office of Statistical 32
262	262	Standards, Executive Office of the President, United States Bureau of the Budget, as revised from 33
263	263	time to time, to be sold to the extent the property is used in administration or distribution operations; 34
264	264
265	265
266	266	LC002036 - Page 8 of 19
267	267	(iii) Machinery and equipment and related items used in connection with the actual 1
268	268	manufacture, conversion, or processing of any computer software or any tangible personal property 2
269	269	that is not to be sold and that would be exempt under subdivision (7) or this subdivision if purchased 3
270	270	from a vendor or machinery and equipment and related items used during any manufacturing, 4
271	271	converting, or processing function is exempt under this subdivision even if that operation, function, 5
272	272	or purpose is not an integral or essential part of a continuous production flow or manufacturing 6
273	273	process; 7
274	274	(iv) Where a portion of a group of portable or mobile machinery is used in connection with 8
275	275	the actual manufacture, conversion, or processing of computer software or tangible personal 9
276	276	property to be sold, as previously defined, that portion, if otherwise qualifying, is exempt under 10
277	277	this subdivision even though the machinery in that group is used interchangeably and not otherwise 11
278	278	identifiable as to use. 12
279	279	(23) Trade-in value of motor vehicles. From the sale and from the storage, use, or other 13
280	280	consumption in this state of so much of the purchase price paid for a new or used automobile as is 14
281	281	allocated for a trade-in allowance on the automobile of the buyer given in trade to the seller, or of 15
282	282	the proceeds applicable only to the automobile as are received from the manufacturer of 16
283	283	automobiles for the repurchase of the automobile whether the repurchase was voluntary or not 17
284	284	towards the purchase of a new or used automobile by the buyer. For the purpose of this subdivision, 18
285	285	the word “automobile” means a private passenger automobile not used for hire and does not refer 19
286	286	to any other type of motor vehicle. 20
287	287	(24) Precious metal bullion. 21
288	288	(i) From the sale and from the storage, use, or other consumption in this state of precious 22
289	289	metal bullion, substantially equivalent to a transaction in securities or commodities. 23
290	290	(ii) For purposes of this subdivision, “precious metal bullion” means any elementary 24
291	291	precious metal that has been put through a process of smelting or refining, including, but not limited 25
292	292	to: gold, silver, platinum, rhodium, and chromium, and that is in a state or condition that its value 26
293	293	depends upon its content and not upon its form. 27
294	294	(iii) The term does not include fabricated precious metal that has been processed or 28
295	295	manufactured for some one or more specific and customary industrial, professional, or artistic uses. 29
296	296	(25) Commercial vessels. From sales made to a commercial ship, barge, or other vessel of 30
297	297	fifty (50) tons burden or over, primarily engaged in interstate or foreign commerce, and from the 31
298	298	repair, alteration, or conversion of the vessels, and from the sale of property purchased for the use 32
299	299	of the vessels including provisions, supplies, and material for the maintenance and/or repair of the 33
300	300	vessels. 34
301	301
302	302
303	303	LC002036 - Page 9 of 19
304	304	(26) Commercial fishing vessels. From the sale and from the storage, use, or other 1
305	305	consumption in this state of vessels and other watercraft that are in excess of five (5) net tons and 2
306	306	that are used exclusively for “commercial fishing,” as defined in this subdivision, and from the 3
307	307	repair, alteration, or conversion of those vessels and other watercraft, and from the sale of property 4
308	308	purchased for the use of those vessels and other watercraft including provisions, supplies, and 5
309	309	material for the maintenance and/or repair of the vessels and other watercraft and the boats nets, 6
310	310	cables, tackle, and other fishing equipment appurtenant to or used in connection with the 7
311	311	commercial fishing of the vessels and other watercraft. “Commercial fishing” means taking or 8
312	312	attempting to take any fish, shellfish, crustacea, or bait species with the intent of disposing of it for 9
313	313	profit or by sale, barter, trade, or in commercial channels. The term does not include subsistence 10
314	314	fishing, i.e., the taking for personal use and not for sale or barter; or sport fishing; but shall include 11
315	315	vessels and other watercraft with a Rhode Island party and charter boat license issued by the 12
316	316	department of environmental management pursuant to § 20-2-27.1 that meet the following criteria: 13
317	317	(i) The operator must have a current United States Coast Guard (U.S.C.G.) license to carry 14
318	318	passengers for hire; (ii) U.S.C.G. vessel documentation in the coast wide fishery trade; (iii) 15
319	319	U.S.C.G. vessel documentation as to proof of Rhode Island home port status or a Rhode Island boat 16
320	320	registration to prove Rhode Island home port status; and (iv) The vessel must be used as a 17
321	321	commercial passenger carrying fishing vessel to carry passengers for fishing. The vessel must be 18
322	322	able to demonstrate that at least fifty percent (50%) of its annual gross income derives from charters 19
323	323	or provides documentation of a minimum of one hundred (100) charter trips annually; and (v) The 20
324	324	vessel must have a valid Rhode Island party and charter boat license. The tax administrator shall 21
325	325	implement the provisions of this subdivision by promulgating rules and regulations relating thereto. 22
326	326	(27) Clothing and footwear. 23
327	327	(i) From the sales of articles of clothing, including footwear, intended to be worn or carried 24
328	328	on or about the human body for sales prior to October 1, 2012. Effective October 1, 2012, the 25
329	329	exemption will apply to the sales of articles of clothing, including footwear, intended to be worn 26
330	330	or carried on or about the human body up to two hundred and fifty dollars ($250) of the sales price 27
331	331	per item. For the purposes of this section, “clothing or footwear” does not include clothing 28
332	332	accessories or equipment or special clothing or footwear primarily designed for athletic activity or 29
333	333	protective use as these terms are defined in § 44-18-7.1(f). In recognition of the work being 30
334	334	performed by the streamlined sales and use tax governing board, upon passage of any federal law 31
335	335	that authorizes states to require remote sellers to collect and remit sales and use taxes, this unlimited 32
336	336	exemption will apply as it did prior to October 1, 2012. The unlimited exemption on sales of 33
337	337	clothing and footwear shall take effect on the date that the state requires remote sellers to collect 34
338	338
339	339
340	340	LC002036 - Page 10 of 19
341	341	and remit sales and use taxes. 1
342	342	(ii) For purposes of this section, "clothing" includes cloth facial coverings or disposable 2
343	343	face masks sold at retail for general use by the public. 3
344	344	(28) Water for residential use. From the sale and from the storage, use, or other 4
345	345	consumption in this state of water furnished for domestic use by occupants of residential premises. 5
346	346	(29) Bibles. [Unconstitutional; see Ahlburn v. Clark, 728 A.2d 449 (R.I. 1999); see Notes 6
347	347	to Decisions.] From the sale and from the storage, use, or other consumption in the state of any 7
348	348	canonized scriptures of any tax-exempt nonprofit religious organization including, but not limited 8
349	349	to, the Old Testament and the New Testament versions. 9
350	350	(30) Boats. 10
351	351	(i) From the sale of a boat or vessel to a bona fide nonresident of this state who does not 11
352	352	register the boat or vessel in this state or document the boat or vessel with the United States 12
353	353	government at a home port within the state, whether the sale or delivery of the boat or vessel is 13
354	354	made in this state or elsewhere; provided, that the nonresident transports the boat within thirty (30) 14
355	355	days after delivery by the seller outside the state for use thereafter solely outside the state. 15
356	356	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 16
357	357	require the seller of the boat or vessel to keep records of the sales to bona fide nonresidents as the 17
358	358	tax administrator deems reasonably necessary to substantiate the exemption provided in this 18
359	359	subdivision, including the affidavit of the seller that the buyer represented himself or herself to be 19
360	360	a bona fide nonresident of this state and of the buyer that he or she is a nonresident of this state. 20
361	361	(31) Youth activities equipment. From the sale, storage, use, or other consumption in this 21
362	362	state of items for not more than twenty dollars ($20.00) each by nonprofit Rhode Island 22
363	363	eleemosynary organizations, for the purposes of youth activities that the organization is formed to 23
364	364	sponsor and support; and by accredited elementary and secondary schools for the purposes of the 24
365	365	schools or of organized activities of the enrolled students. 25
366	366	(32) Farm equipment. From the sale and from the storage or use of machinery and 26
367	367	equipment used directly for commercial farming and agricultural production; including, but not 27
368	368	limited to: tractors, ploughs, harrows, spreaders, seeders, milking machines, silage conveyors, 28
369	369	balers, bulk milk storage tanks, trucks with farm plates, mowers, combines, irrigation equipment, 29
370	370	greenhouses and greenhouse coverings, graders and packaging machines, tools and supplies and 30
371	371	other farming equipment, including replacement parts appurtenant to or used in connection with 31
372	372	commercial farming and tools and supplies used in the repair and maintenance of farming 32
373	373	equipment. “Commercial farming” means the keeping or boarding of five (5) or more horses or the 33
374	374	production within this state of agricultural products, including, but not limited to, field or orchard 34
375	375
376	376
377	377	LC002036 - Page 11 of 19
378	378	crops, livestock, dairy, and poultry, or their products, where the keeping, boarding, or production 1
379	379	provides at least two thousand five hundred dollars ($2,500) in annual gross sales to the operator, 2
380	380	whether an individual, a group, a partnership, or a corporation for exemptions issued prior to July 3
381	381	1, 2002. For exemptions issued or renewed after July 1, 2002, there shall be two (2) levels. Level I 4
382	382	shall be based on proof of annual, gross sales from commercial farming of at least twenty-five 5
383	383	hundred dollars ($2,500) and shall be valid for purchases subject to the exemption provided in this 6
384	384	subdivision except for motor vehicles with an excise tax value of five thousand dollars ($5,000) or 7
385	385	greater. Level II shall be based on proof of annual gross sales from commercial farming of at least 8
386	386	ten thousand dollars ($10,000) or greater and shall be valid for purchases subject to the exemption 9
387	387	provided in this subdivision including motor vehicles with an excise tax value of five thousand 10
388	388	dollars ($5,000) or greater. For the initial issuance of the exemptions, proof of the requisite amount 11
389	389	of annual gross sales from commercial farming shall be required for the prior year; for any renewal 12
390	390	of an exemption granted in accordance with this subdivision at either level I or level II, proof of 13
391	391	gross annual sales from commercial farming at the requisite amount shall be required for each of 14
392	392	the prior two (2) years. Certificates of exemption issued or renewed after July 1, 2002, shall clearly 15
393	393	indicate the level of the exemption and be valid for four (4) years after the date of issue. This 16
394	394	exemption applies even if the same equipment is used for ancillary uses, or is temporarily used for 17
395	395	a non-farming or a non-agricultural purpose, but shall not apply to motor vehicles acquired after 18
396	396	July 1, 2002, unless the vehicle is a farm vehicle as defined pursuant to § 31-1-8 and is eligible for 19
397	397	registration displaying farm plates as provided for in § 31-3-31. 20
398	398	(33) Compressed air. From the sale and from the storage, use, or other consumption in the 21
399	399	state of compressed air. 22
400	400	(34) Flags. From the sale and from the storage, consumption, or other use in this state of 23
401	401	United States, Rhode Island or POW-MIA flags. 24
402	402	(35) Motor vehicle and adaptive equipment to certain veterans. From the sale of a motor 25
403	403	vehicle and adaptive equipment to and for the use of a veteran with a service-connected loss of or 26
404	404	the loss of use of a leg, foot, hand, or arm, or any veteran who is a double amputee, whether service 27
405	405	connected or not. The motor vehicle must be purchased by and especially equipped for use by the 28
406	406	qualifying veteran. Certificate of exemption or refunds of taxes paid is granted under rules or 29
407	407	regulations that the tax administrator may prescribe. 30
408	408	(36) Textbooks. From the sale and from the storage, use, or other consumption in this state 31
409	409	of textbooks by an “educational institution,” as defined in subsection (18) of this section, and any 32
410	410	educational institution within the purview of § 16-63-9(4), and used textbooks by any purveyor. 33
411	411	(37) Tangible personal property and supplies used in on-site hazardous waste recycling, 34
412	412
413	413
414	414	LC002036 - Page 12 of 19
415	415	reuse, or treatment. From the sale, storage, use, or other consumption in this state of tangible 1
416	416	personal property or supplies used or consumed in the operation of equipment, the exclusive 2
417	417	function of which is the recycling, reuse, or recovery of materials (other than precious metals, as 3
418	418	defined in subdivision (24)(ii) of this section) from the treatment of “hazardous wastes,” as defined 4
419	419	in § 23-19.1-4, where the “hazardous wastes” are generated in Rhode Island solely by the same 5
420	420	taxpayer and where the personal property is located at, in, or adjacent to a generating facility of the 6
421	421	taxpayer in Rhode Island. The taxpayer shall procure an order from the director of the department 7
422	422	of environmental management certifying that the equipment and/or supplies as used or consumed, 8
423	423	qualify for the exemption under this subdivision. If any information relating to secret processes or 9
424	424	methods of manufacture, production, or treatment is disclosed to the department of environmental 10
425	425	management only to procure an order, and is a “trade secret” as defined in § 28-21-10(b), it is not 11
426	426	open to public inspection or publicly disclosed unless disclosure is required under chapter 21 of 12
427	427	title 28 or chapter 24.4 of title 23. 13
428	428	(38) Promotional and product literature of boat manufacturers. From the sale and from the 14
429	429	storage, use, or other consumption of promotional and product literature of boat manufacturers 15
430	430	shipped to points outside of Rhode Island that either: (i) Accompany the product that is sold; (ii) 16
431	431	Are shipped in bulk to out-of-state dealers for use in the sale of the product; or (iii) Are mailed to 17
432	432	customers at no charge. 18
433	433	(39) Food items paid for by food stamps. From the sale and from the storage, use, or other 19
434	434	consumption in this state of eligible food items payment for which is properly made to the retailer 20
435	435	in the form of U.S. government food stamps issued in accordance with the Food Stamp Act of 1977, 21
436	436	7 U.S.C. § 2011 et seq. 22
437	437	(40) Transportation charges. From the sale or hiring of motor carriers as defined in § 39-23
438	438	12-2(12) to haul goods, when the contract or hiring cost is charged by a motor freight tariff filed 24
439	439	with the Rhode Island public utilities commission on the number of miles driven or by the number 25
440	440	of hours spent on the job. 26
441	441	(41) Trade-in value of boats. From the sale and from the storage, use, or other consumption 27
442	442	in this state of so much of the purchase price paid for a new or used boat as is allocated for a trade-28
443	443	in allowance on the boat of the buyer given in trade to the seller or of the proceeds applicable only 29
444	444	to the boat as are received from an insurance claim as a result of a stolen or damaged boat, towards 30
445	445	the purchase of a new or used boat by the buyer. 31
446	446	(42) Equipment used for research and development. From the sale and from the storage, 32
447	447	use, or other consumption of equipment to the extent used for research and development purposes 33
448	448	by a qualifying firm. For the purposes of this subsection, “qualifying firm” means a business for 34
449	449
450	450
451	451	LC002036 - Page 13 of 19
452	452	which the use of research and development equipment is an integral part of its operation and 1
453	453	“equipment” means scientific equipment, computers, software, and related items. 2
454	454	(43) Coins. From the sale and from the other consumption in this state of coins having 3
455	455	numismatic or investment value. 4
456	456	(44) Farm structure construction materials. Lumber, hardware, and other materials used in 5
457	457	the new construction of farm structures, including production facilities such as, but not limited to: 6
458	458	farrowing sheds, free stall and stanchion barns, milking parlors, silos, poultry barns, laying houses, 7
459	459	fruit and vegetable storages, rooting cellars, propagation rooms, greenhouses, packing rooms, 8
460	460	machinery storage, seasonal farm worker housing, certified farm markets, bunker and trench silos, 9
461	461	feed storage sheds, and any other structures used in connection with commercial farming. 10
462	462	(45) Telecommunications carrier access service. Carrier access service or 11
463	463	telecommunications service when purchased by a telecommunications company from another 12
464	464	telecommunications company to facilitate the provision of telecommunications service. 13
465	465	(46) Boats or vessels brought into the state exclusively for winter storage, maintenance, 14
466	466	repair, or sale. Notwithstanding the provisions of §§ 44-18-10, 44-18-11 and 44-18-20, the tax 15
467	467	imposed by § 44-18-20 is not applicable for the period commencing on the first day of October in 16
468	468	any year up to and including the 30th day of April next succeeding with respect to the use of any 17
469	469	boat or vessel within this state exclusively for purposes of: (i) Delivery of the vessel to a facility in 18
470	470	this state for storage, including dry storage and storage in water by means of apparatus preventing 19
471	471	ice damage to the hull, maintenance, or repair; (ii) The actual process of storage, maintenance, or 20
472	472	repair of the boat or vessel; or (iii) Storage for the purpose of selling the boat or vessel. 21
473	473	(47) Jewelry display product. From the sale and from the storage, use, or other 22
474	474	consumption in this state of tangible personal property used to display any jewelry product; 23
475	475	provided that title to the jewelry display product is transferred by the jewelry manufacturer or seller 24
476	476	and that the jewelry display product is shipped out of state for use solely outside the state and is not 25
477	477	returned to the jewelry manufacturer or seller. 26
478	478	(48) Boats or vessels generally. Notwithstanding the provisions of this chapter, the tax 27
479	479	imposed by §§ 44-18-20 and 44-18-18 shall not apply with respect to the sale and to the storage, 28
480	480	use, or other consumption in this state of any new or used boat. The exemption provided for in this 29
481	481	subdivision does not apply after October 1, 1993, unless prior to October 1, 1993, the federal ten 30
482	482	percent (10%) surcharge on luxury boats is repealed. 31
483	483	(49) Banks and regulated investment companies interstate toll-free calls. Notwithstanding 32
484	484	the provisions of this chapter, the tax imposed by this chapter does not apply to the furnishing of 33
485	485	interstate and international, toll-free terminating telecommunication service that is used directly 34
486	486
487	487
488	488	LC002036 - Page 14 of 19
489	489	and exclusively by or for the benefit of an eligible company as defined in this subdivision; provided 1
490	490	that an eligible company employs on average during the calendar year no less than five hundred 2
491	491	(500) “full-time equivalent employees” as that term is defined in § 42-64.5-2. For purposes of this 3
492	492	section, an “eligible company” means a “regulated investment company” as that term is defined in 4
493	493	the Internal Revenue Code of 1986, 26 U.S.C. § 851, or a corporation to the extent the service is 5
494	494	provided, directly or indirectly, to or on behalf of a regulated investment company, an employee 6
495	495	benefit plan, a retirement plan or a pension plan, or a state-chartered bank. 7
496	496	(50) Mobile and manufactured homes generally. From the sale and from the storage, use, 8
497	497	or other consumption in this state of mobile and/or manufactured homes as defined and subject to 9
498	498	taxation pursuant to the provisions of chapter 44 of title 31. 10
499	499	(51) Manufacturing business reconstruction materials. 11
500	500	(i) From the sale and from the storage, use, or other consumption in this state of lumber, 12
501	501	hardware, and other building materials used in the reconstruction of a manufacturing business 13
502	502	facility that suffers a disaster, as defined in this subdivision, in this state. “Disaster” means any 14
503	503	occurrence, natural or otherwise, that results in the destruction of sixty percent (60%) or more of 15
504	504	an operating manufacturing business facility within this state. “Disaster” does not include any 16
505	505	damage resulting from the willful act of the owner of the manufacturing business facility. 17
506	506	(ii) Manufacturing business facility includes, but is not limited to, the structures housing 18
507	507	the production and administrative facilities. 19
508	508	(iii) In the event a manufacturer has more than one manufacturing site in this state, the sixty 20
509	509	percent (60%) provision applies to the damages suffered at that one site. 21
510	510	(iv) To the extent that the costs of the reconstruction materials are reimbursed by insurance, 22
511	511	this exemption does not apply. 23
512	512	(52) Tangible personal property and supplies used in the processing or preparation of floral 24
513	513	products and floral arrangements. From the sale, storage, use, or other consumption in this state of 25
514	514	tangible personal property or supplies purchased by florists, garden centers, or other like producers 26
515	515	or vendors of flowers, plants, floral products, and natural and artificial floral arrangements that are 27
516	516	ultimately sold with flowers, plants, floral products, and natural and artificial floral arrangements 28
517	517	or are otherwise used in the decoration, fabrication, creation, processing, or preparation of flowers, 29
518	518	plants, floral products, or natural and artificial floral arrangements, including descriptive labels, 30
519	519	stickers, and cards affixed to the flower, plant, floral product, or arrangement, artificial flowers, 31
520	520	spray materials, floral paint and tint, plant shine, flower food, insecticide, and fertilizers. 32
521	521	(53) Horse food products. From the sale and from the storage, use, or other consumption 33
522	522	in this state of horse food products purchased by a person engaged in the business of the boarding 34
523	523
524	524
525	525	LC002036 - Page 15 of 19
526	526	of horses. 1
527	527	(54) Non-motorized recreational vehicles sold to nonresidents. 2
528	528	(i) From the sale, subsequent to June 30, 2003, of a non-motorized recreational vehicle to 3
529	529	a bona fide nonresident of this state who does not register the non-motorized recreational vehicle 4
530	530	in this state, whether the sale or delivery of the non-motorized recreational vehicle is made in this 5
531	531	state or at the place of residence of the nonresident; provided that a non-motorized recreational 6
532	532	vehicle sold to a bona fide nonresident whose state of residence does not allow a like exemption to 7
533	533	its nonresidents is not exempt from the tax imposed under § 44-18-20; provided, further, that in 8
534	534	that event the bona fide nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate 9
535	535	that would be imposed in his or her state of residence not to exceed the rate that would have been 10
536	536	imposed under § 44-18-20. Notwithstanding any other provisions of law, a licensed, non-motorized 11
537	537	recreational vehicle dealer shall add and collect the tax required under this subdivision and remit 12
538	538	the tax to the tax administrator under the provisions of chapters 18 and 19 of this title. Provided, 13
539	539	that when a Rhode Island licensed, non-motorized recreational vehicle dealer is required to add and 14
540	540	collect the sales and use tax on the sale of a non-motorized recreational vehicle to a bona fide 15
541	541	nonresident as provided in this section, the dealer in computing the tax takes into consideration the 16
542	542	law of the state of the nonresident as it relates to the trade-in of motor vehicles. 17
543	543	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 18
544	544	require any licensed, non-motorized recreational vehicle dealer to keep records of sales to bona fide 19
545	545	nonresidents as the tax administrator deems reasonably necessary to substantiate the exemption 20
546	546	provided in this subdivision, including the affidavit of a licensed, non-motorized recreational 21
547	547	vehicle dealer that the purchaser of the non-motorized recreational vehicle was the holder of, and 22
548	548	had in his or her possession a valid out-of-state non-motorized recreational vehicle registration or 23
549	549	a valid out-of-state driver’s license. 24
550	550	(iii) Any nonresident who registers a non-motorized recreational vehicle in this state within 25
551	551	ninety (90) days of the date of its sale to him or her is deemed to have purchased the non-motorized 26
552	552	recreational vehicle for use, storage, or other consumption in this state, and is subject to, and liable 27
553	553	for, the use tax imposed under the provisions of § 44-18-20. 28
554	554	(iv) “Non-motorized recreational vehicle” means any portable dwelling designed and 29
555	555	constructed to be used as a temporary dwelling for travel, camping, recreational, and vacation use 30
556	556	that is eligible to be registered for highway use, including, but not limited to, “pick-up coaches” or 31
557	557	“pick-up campers,” “travel trailers,” and “tent trailers” as those terms are defined in chapter 1 of 32
558	558	title 31. 33
559	559	(55) Sprinkler and fire alarm systems in existing buildings. From the sale in this state of 34
560	560
561	561
562	562	LC002036 - Page 16 of 19
563	563	sprinkler and fire alarm systems; emergency lighting and alarm systems; and the materials 1
564	564	necessary and attendant to the installation of those systems that are required in buildings and 2
565	565	occupancies existing therein in July 2003 in order to comply with any additional requirements for 3
566	566	such buildings arising directly from the enactment of the Comprehensive Fire Safety Act of 2003 4
567	567	and that are not required by any other provision of law or ordinance or regulation adopted pursuant 5
568	568	to that act. The exemption provided in this subdivision shall expire on December 31, 2008. 6
569	569	(56) Aircraft. Notwithstanding the provisions of this chapter, the tax imposed by §§ 44-7
570	570	18-18 and 44-18-20 shall not apply with respect to the sale and to the storage, use, or other 8
571	571	consumption in this state of any new or used aircraft or aircraft parts. 9
572	572	(57) Renewable energy products. Notwithstanding any other provisions of Rhode Island 10
573	573	general laws, the following products shall also be exempt from sales tax: solar photovoltaic 11
574	574	modules or panels, or any module or panel that generates electricity from light; solar thermal 12
575	575	collectors, including, but not limited to, those manufactured with flat glass plates, extruded plastic, 13
576	576	sheet metal, and/or evacuated tubes; geothermal heat pumps, including both water-to-water and 14
577	577	water-to-air type pumps; wind turbines; towers used to mount wind turbines if specified by or sold 15
578	578	by a wind turbine manufacturer; DC to AC inverters that interconnect with utility power lines; and 16
579	579	manufactured mounting racks and ballast pans for solar collector, module, or panel installation. Not 17
580	580	to include materials that could be fabricated into such racks; monitoring and control equipment, if 18
581	581	specified or supplied by a manufacturer of solar thermal, solar photovoltaic, geothermal, or wind 19
582	582	energy systems or if required by law or regulation for such systems but not to include pumps, fans 20
583	583	or plumbing or electrical fixtures unless shipped from the manufacturer affixed to, or an integral 21
584	584	part of, another item specified on this list; and solar storage tanks that are part of a solar domestic 22
585	585	hot water system or a solar space heating system. If the tank comes with an external heat exchanger 23
586	586	it shall also be tax exempt, but a standard hot water tank is not exempt from state sales tax. 24
587	587	(58) Returned property. The amount charged for property returned by customers upon 25
588	588	rescission of the contract of sale when the entire amount exclusive of handling charges paid for the 26
589	589	property is refunded in either cash or credit, and where the property is returned within one hundred 27
590	590	twenty (120) days from the date of delivery. 28
591	591	(59) Dietary supplements. From the sale and from the storage, use, or other consumption 29
592	592	of dietary supplements as defined in § 44-18-7.1(l)(v), sold on prescriptions. 30
593	593	(60) Blood. From the sale and from the storage, use, or other consumption of human blood. 31
594	594	(61) Agricultural products for human consumption. From the sale and from the storage, 32
595	595	use, or other consumption of livestock and poultry of the kinds of products that ordinarily constitute 33
596	596	food for human consumption and of livestock of the kind the products of which ordinarily constitute 34
597	597
598	598
599	599	LC002036 - Page 17 of 19
600	600	fibers for human use. 1
601	601	(62) Diesel emission control technology. From the sale and use of diesel retrofit 2
602	602	technology that is required by § 31-47.3-4. 3
603	603	(63) Feed for certain animals used in commercial farming. From the sale of feed for 4
604	604	animals as described in subsection (61) of this section. 5
605	605	(64) Alcoholic beverages. From the sale and storage, use, or other consumption in this 6
606	606	state by a Class A licensee of alcoholic beverages, as defined in § 44-18-7.1, excluding beer and 7
607	607	malt beverages; provided, further, notwithstanding § 6-13-1 or any other general or public law to 8
608	608	the contrary, alcoholic beverages, as defined in § 44-18-7.1, shall not be subject to minimum 9
609	609	markup. 10
610	610	(65) Seeds and plants used to grow food and food ingredients. From the sale, storage, use, 11
611	611	or other consumption in this state of seeds and plants used to grow food and food ingredients as 12
612	612	defined in § 44-18-7.1(l)(i). “Seeds and plants used to grow food and food ingredients” shall not 13
613	613	include marijuana seeds or plants. 14
614	614	(66) Feminine hygiene products. From the sale and from the storage, use, or other 15
615	615	consumption of tampons, panty liners, menstrual cups, sanitary napkins, and other similar products 16
616	616	the principal use of which is feminine hygiene in connection with the menstrual cycle. 17
617	617	(67) “Breast pump collection and storage supplies” means items of tangible personal 18
618	618	property used in conjunction with a breast pump to collect milk expressed from a human breast and 19
619	619	to store collected milk until it is ready for consumption. “Breast pump collection and storage 20
620	620	supplies” include, but are not limited to, breast shields and breast shield connectors; breast pump 21
621	621	tubes and tubing adaptors; breast pump valves and membranes; backflow protectors and backflow 22
622	622	protector adaptors; bottles and bottle caps specific to the operation of the breast pump; breast milk 23
623	623	storage bags; and related items sold as part of a breast pump kit pre-packaged by the breast pump 24
624	624	manufacturer. “Breast pump collection and storage supplies” does not include: bottles and bottle 25
625	625	caps not specific to the operation of the breast pump; breast pump travel bags and other similar 26
626	626	carrying accessories, including ice packs, labels, and other similar products, unless sold as part of 27
627	627	a breast pump kit pre-packed by the breast pump manufacturer; breast pump cleaning supplies, 28
628	628	unless sold as part of a breast pump kit pre-packaged by the breast pump manufacturer; nursing 29
629	629	bras, bra pads, breast shells, and other similar products; and creams, ointments, and other similar 30
630	630	products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples. 31
631	631	(68) Trade-in value of motorcycles. From the sale and from the storage, use, or other 32
632	632	consumption in this state of so much of the purchase price paid for a new or used motorcycle as is 33
633	633	allocated for a trade-in allowance on the motorcycle of the buyer given in trade to the seller, or of 34
634	634
635	635
636	636	LC002036 - Page 18 of 19
637	637	the proceeds applicable only to the motorcycle as are received from the manufacturer of 1
638	638	motorcycles for the repurchase of the motorcycle whether the repurchase was voluntary or not 2
639	639	towards the purchase of a new or used motorcycle by the buyer. For the purpose of this subsection, 3
640	640	the word “motorcycle” means a motorcycle not used for hire and does not refer to any other type 4
641	641	of motor vehicle. 5
642	642	SECTION 2. This act shall take effect upon passage. 6
643	643	========
644	644	LC002036
645	645	========
646	646
647	647
648	648	LC002036 - Page 19 of 19
649	649	EXPLANATION
650	650	BY THE LEGISLATIVE COUNCIL
651	651	OF
652	652	A N A C T
653	653	RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND
654	654	COMPUTATION
655	655	***
656	656	This act would exempt from taxation the retail sale of cloth or disposable face masks and 1
657	657	facial coverings. 2
658	658	This act would take effect upon passage. 3
659	659	========
660	660	LC002036
661	661	========
662	662