2025 -- H 5098
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LC000539
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2025
____________
A N A C T
RELATING TO AGRICULTURE AND FORESTRY -- FORESTRY AND FOREST PARITY
ACT
Introduced By: Representatives Cotter, Chippendale, Speakman, McGaw, Donovan,
Fogarty, Carson, Spears, Shanley, and Kislak
Date Introduced: January 22, 2025
Referred To: House Environment and Natural Resources
It is enacted by the General Assembly as follows:
SECTION 1. Legislative findings. 1
The general assembly finds and declares: 2
(1) That maintaining forests is vital to maintain both biodiversity, and ecosystem services, 3
including carbon sequestration in the state; 4
(2) That forests are more likely to be maintained if they provide economic value; 5
(3) That providing for the economic viability of the forest products industry is an interest 6
of the state; 7
(4) That forest conservation is given the same status as farm and open space conservation 8
under chapter 27 of title 44 ("taxation of farm, forest, and open space land"); however, elsewhere 9
in the general laws, forestry, and the production of forest products, are not given the same benefits, 10
including protections from taxation, and protections as agriculture; and 11
(5) That it is in the interest of the state, in order to protect economic viability of forests and 12
to provide for their conservation for the future benefit and enjoyment of the people of the state. 13
SECTION 2. Title 2 of the General Laws entitled "AGRICULTURE AND FORESTRY" 14
is hereby amended by adding thereto the following chapter: 15
CHAPTER 27.1 16
FORESTRY AND FOREST PARITY ACT 17
2-27.1-1. Short title. 18
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This chapter shall be known and may be cited as the "Forestry Parity Act." 1
2-27.1-2. Purpose. 2
It is the purpose of this chapter to provide parity of treatment, under the law, with farming 3
and agriculture operations, to forestry and forest product operations. 4
2-27.1-3. Definitions. 5
When used in this chapter, the following words and phrases are construed as follows: 6
(1) "Forest-based business" shall have the same meaning as defined in § 2-27-2. 7
(2) "Forest land" shall have the same meaning as defined in § 2-27-2. 8
(3) "Forest management" shall have the same meaning as defined in § 2-27-2. 9
(4) "Forest product operations" means any and all trade occupations involving the 10
harvesting, production, maintaining, and sale of forest products originating in the state, including, 11
but not limited to: 12
(i) Arboriculture and logging; and 13
(ii) Kiln drying, operations of firewood, saw milling, lumber, pallets, biochar, mulch, 14
compost, biomass, wood chips, saw dust, timbers, posts, beams, shingles, and artisan tree carvings, 15
seasonal greens and berries. 16
(5) "Forest property owner" means a person who owns "forest land" or leases "forest land" 17
for a period of five (5) years or more, which lease permits the conduct of some or all "forest product 18
operations" on the "forest land". 19
(6) "Person" shall have the same meaning as defined in § 43-3-6. 20
2-27.1-4. Declaration of policies. 21
The general assembly finds and declares that it is the policy of the state to promote an 22
environment in which forest operations and forest-based businesses are safeguarded against 23
nuisance actions arising out of conflicts between forestry operations and urban and suburban land 24
uses, in a manner consistent with the provisions of chapter 23 of title 2 ("right to farm act"), and to 25
protect forest landowners with forest management plans from state administrative actions and 26
regulations above and beyond the restrictions on farms and agricultural operations on the same 27
subject. 28
2-27.1-5. Intentional and negligent actions. 29
The provisions of § 2-27.1-5 do not apply to forestry operations conducted in a malicious 30
or negligent manner, or to forestry operations conducted in violation of federal or state law. 31
SECTION 3. Chapter 31-1 of the General Laws entitled "Definitions and General Code 32
Provisions" is hereby amended by adding thereto the following section: 33
31-1-8.1. Forestry vehicle. 34
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"Forestry vehicle" means every vehicle which is designed for and used for forest product 1
operations purposes, as defined in § 2-27.1-4, and used by the owner of the vehicle or family 2
member(s) or employee(s) or designees of the owner, in the conduct of the owner's forestry product 3
operations, which use shall include the delivery of forest products produced by the forester but shall 4
not include commercial hire for non-forestry product operation uses, including, but not limited to, 5
hauling of sand and gravel, snow plowing, other than directly on the vehicle owner's forest land. 6
For an owner to qualify as having forestry purposes, the owner shall provide evidence that the 7
owner meets the requirements of § 44-18-30. 8
SECTION 4. Chapter 31-3 of the General Laws entitled "Registration of Vehicles" is 9
hereby amended by adding thereto the following section: 10
31-3-31.4. Registration of forestry vehicles -- Use of farm plates. 11
Forestry vehicles, as defined in § 31-1-8.1, equipped with rubber tires while being used in 12
forestry and operated on highways, shall be registered on a form furnished by the administrator of 13
the division of motor vehicles and shall be assigned a special number farm plate pursuant to the 14
provisions of § 31-3-31 with a suitable symbol or letter indicating the usage of the forestry vehicle. 15
SECTION 5. Section 42-64-5 of the General Laws in Chapter 42-64 entitled "Rhode Island 16
Commerce Corporation" is hereby amended to read as follows: 17
42-64-5. Purposes. 18
The Rhode Island commerce corporation is authorized, created, and established to be an 19
agency under the jurisdiction of the state’s lead agency for economic development, the executive 20
office of commerce, and to be the operating agency of the state to carry out the policies and 21
procedure as established by the secretary, governor, and the board of directors for the following 22
purposes: 23
(1) To promote and encourage the preservation, expansion, and sound development of new 24
and existing industry, business, commerce, agriculture, forestry, tourism, and recreational facilities 25
in the state, which will promote the economic development of the state and the general welfare of 26
its citizens; and 27
(2) With respect to real property other than federal land or land related to federal land, to 28
undertake any project, except a residential facility; and 29
(3) With respect to federal land or land related to federal land, to undertake any project, 30
except as those responsibilities are assigned to the Quonset Development Corporation; and 31
(4) To create an organization that is responsive to the needs and interests of businesses of 32
all sizes within the state of Rhode Island and to be structured to be customer centric to enhance 33
commerce in the state utilizing all available resources. 34
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SECTION 6. Section 44-5-12.1 of the General Laws in Chapter 44-5 entitled "Levy and 1
Assessment of Local Taxes" is hereby amended to read as follows: 2
44-5-12.1. Assessment of tangible personal property. 3
(a) All tangible personal property subject to taxation shall be assessed for taxation based 4
on the original purchase price (new or used) including all costs such as freight and installation. 5
Assets will be classified and depreciated as defined in this section. 6
(b) The following classification and depreciation table shall be used in determining the 7
assessed value of tangible personal property. 8
State of Rhode Island Tangible Property Classification 9
Class I Class II Class III 10
Class of Assets Short Life Mid-Life Long Life 11
Age 1-5 yrs 6-12 yrs 13+ yrs 12
1 95 95 95 13
2 80 90 90 14
3 60 80 85 15
4 30 70 80 16
5 20 60 75 17
6 20 50 70 18
7 20 40 65 19
8 20 30 60 20
9 20 30 55 21
10 20 30 50 22
11 20 30 45 23
12 20 30 40 24
13 20 30 35 25
14 20 30 30 26
15+ 20 30 30 27
Assets Shall Not be Trended 28
(c) Assets shall be classified on an annual basis by the Rhode Island Association of 29
Assessing Officers’ Personal Property Committee based on the following table: 30
INDUSTRY GROUP IN YEARS CLASS 31
Agriculture and forestry machinery and equipment II 32
Aircraft and all helicopters II 33
Amusement and theme parks II 34
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Apparel and fabricated textile manufacturing II 1
Automobile repair shops II 2
Bakeries and confectionery production II 3
Barber and beauty shops II 4
Billboards III 5
Brewery equipment not used directly in manufacturing II 6
Cable television, headend facilities: II 7
Microwave systems II 8
Program origination II 9
Service and test II 10
Subscriber connection and distribution II 11
Canneries and frozen food production II 12
Cement processing III 13
Chemical and allied production II 14
Clay products processing III 15
Cold storage and ice-making equipment III 16
Cold storage warehouse equipment II 17
Computers, personal computers (PC), laptops, tablets, cellphones, 18
mainframe/servers, peripherals, keyboard, mouse I 19
Condiments, processing II 20
Construction equipment, general construction, backhoes, 21
forklifts, loaders, cranes, unregistered vehicles II 22
Dairy products processing II 23
Data handling equipment, except computers II 24
printers, copiers, bridges, routers and gateways II 25
Distilling II 26
Electrical equipment not used in manufacturing II 27
Electronic equipment II 28
Fabricated metal products/special tools II 29
Fishing equipment, excluding boats and barges, lines, nets I 30
Food and beverage production II 31
Fur processing II 32
Gas distribution, total distribution equipment III 33
Glass and glass products/special tools II 34
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Grain and grain mill products processing III 1
Gypsum products III 2
Hand tools II 3
Hospital furnishings and equipment II 4
Hotel and motel furnishings and equipment II 5
Jewelry products and pens II 6
Knitwear and knit products, ex, work uniforms I 7
Laundry equipment II 8
Leather and leather products II 9
Logging, timber cutting II 10
Marine construction II 11
Meatpacking II 12
Medical and dental supply production II 13
Metalworking machinery processing II 14
Mining and quarrying II 15
Motion picture and television production II 16
Motor vehicle and parts/special tools II 17
Office furniture and equipment II 18
Optical lenses and instrument processing II 19
Paints and varnishes I 20
Petroleum refining III 21
pipeline transportation III 22
Plastics manufacturing I/II 23
Plastic products processing/special tools II 24
Primary metals production, nonferrous and foundry products III 25
special tools III 26
Primary steel mill products III 27
Printing and publishing II 28
Professional and scientific instruments II 29
Radio and television, broadcasting II 30
Railroad transportation equipment II 31
locomotive II 32
Recreation and amusement II 33
Retail trades, fixtures and equipment II 34
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Residential furniture II 1
Restaurant and bar equipment II 2
Restaurant equipment, fast foods II 3
Rubber products processing/special tools II 4
Sawmills, permanent/portable II 5
Service establishments II 6
Ship and boat building equipment/special tools II 7
Soft drink processing and bottling II 8
Stone products processing III 9
Telecommunications, local and interstate II 10
analog switching II 11
circuit, digital, analog, optic II 12
information/origination equipment I/II 13
smart phones I 14
metallic cable III 15
fiber cable, poles, conduit III 16
all other equipment II 17
Telecommunications, cellular 18
analog/digital switching II 19
radio frequency channel and control II 20
power equipment II 21
antennae II 22
towers III 23
transmission equipment II 24
cellular phones I 25
Textile products, including finishing and dyeing II 26
yarn, thread and woven fabrics II 27
Theater equipment II 28
Utilities/power production III 29
generation, transmission, or distribution equipment III 30
Waste reduction and resource recovery II 31
Water transportation III 32
vessels, barges and tugs III 33
Water utilities III 34
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Wharves, docks and piers III 1
Wholesale trade fixtures and equipment II 2
Wood products and furniture manufacturing II 3
(d) Any industry, group, or asset not enumerated in subsection (c) of this section, shall be 4
categorized as class II. 5
SECTION 7. Chapter 44-5 of the General Laws entitled "Levy and Assessment of Local 6
Taxes" is hereby amended by adding thereto the following section: 7
44-5-42.2. Exemption of certain forestry product operations property. 8
(a) All forestry product operations machinery, including motor vehicles with farm plates, 9
is exempt from taxation. 10
(b) Cities and towns may tax forestry product operations buildings at a rate that reflects the 11
actual costs incurred by the city or town in providing services to those buildings. 12
SECTION 8. Section 44-18-30 of the General Laws in Chapter 44-18 entitled "Sales and 13
Use Taxes — Liability and Computation" is hereby amended to read as follows: 14
44-18-30. Gross receipts exempt from sales and use taxes. 15
There are exempted from the taxes imposed by this chapter the following gross receipts: 16
(1) Sales and uses beyond constitutional power of state. From the sale and from the storage, 17
use, or other consumption in this state of tangible personal property the gross receipts from the sale 18
of which, or the storage, use, or other consumption of which, this state is prohibited from taxing 19
under the Constitution of the United States or under the constitution of this state. 20
(2) Newspapers. 21
(i) From the sale and from the storage, use, or other consumption in this state of any 22
newspaper. 23
(ii) “Newspaper” means an unbound publication printed on newsprint that contains news, 24
editorial comment, opinions, features, advertising matter, and other matters of public interest. 25
(iii) “Newspaper” does not include a magazine, handbill, circular, flyer, sales catalog, or 26
similar item unless the item is printed for, and distributed as, a part of a newspaper. 27
(3) School meals. From the sale and from the storage, use, or other consumption in this 28
state of meals served by public, private, or parochial schools, school districts, colleges, universities, 29
student organizations, and parent-teacher associations to the students or teachers of a school, 30
college, or university whether the meals are served by the educational institutions or by a food 31
service or management entity under contract to the educational institutions. 32
(4) Containers. 33
(i) From the sale and from the storage, use, or other consumption in this state of: 34
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(A) Non-returnable containers, including boxes, paper bags, and wrapping materials that 1
are biodegradable and all bags and wrapping materials utilized in the medical and healing arts, 2
when sold without the contents to persons who place the contents in the container and sell the 3
contents with the container. 4
(B) Containers when sold with the contents if the sale price of the contents is not required 5
to be included in the measure of the taxes imposed by this chapter. 6
(C) Returnable containers when sold with the contents in connection with a retail sale of 7
the contents or when resold for refilling. 8
(D) Keg and barrel containers, whether returnable or not, when sold to alcoholic beverage 9
producers who place the alcoholic beverages in the containers. 10
(ii) As used in this subdivision, the term “returnable containers” means containers of a kind 11
customarily returned by the buyer of the contents for reuse. All other containers are “non-returnable 12
containers.” 13
(5)(i) Charitable, educational, and religious organizations. From the sale to, as in defined 14
in this section, and from the storage, use, and other consumption in this state, or any other state of 15
the United States of America, of tangible personal property by hospitals not operated for a profit; 16
“educational institutions” as defined in subdivision (18) not operated for a profit; churches, 17
orphanages, and other institutions or organizations operated exclusively for religious or charitable 18
purposes; interest-free loan associations not operated for profit; nonprofit, organized sporting 19
leagues and associations and bands for boys and girls under the age of nineteen (19) years; the 20
following vocational student organizations that are state chapters of national vocational student 21
organizations: Distributive Education Clubs of America (DECA); Future Business Leaders of 22
America, Phi Beta Lambda (FBLA/PBL); Future Farmers of America (FFA); Future Homemakers 23
of America/Home Economics Related Occupations (FHA/HERD); Vocational Industrial Clubs of 24
America (VICA); organized nonprofit golden age and senior citizens clubs for men and women; 25
and parent-teacher associations; and from the sale, storage, use, and other consumption in this state, 26
of and by the Industrial Foundation of Burrillville, a Rhode Island domestic nonprofit corporation. 27
(ii) In the case of contracts entered into with the federal government, its agencies, or 28
instrumentalities, this state, or any other state of the United States of America, its agencies, any 29
city, town, district, or other political subdivision of the states; hospitals not operated for profit; 30
educational institutions not operated for profit; churches, orphanages, and other institutions or 31
organizations operated exclusively for religious or charitable purposes, the contractor may purchase 32
such materials and supplies (materials and/or supplies are defined as those that are essential to the 33
project) that are to be utilized in the construction of the projects being performed under the contracts 34
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without payment of the tax. 1
(iii) The contractor shall not charge any sales or use tax to any exempt agency, institution, 2
or organization but shall in that instance provide his or her suppliers with certificates in the form 3
as determined by the division of taxation showing the reason for exemption and the contractor’s 4
records must substantiate the claim for exemption by showing the disposition of all property so 5
purchased. If any property is then used for a nonexempt purpose, the contractor must pay the tax 6
on the property used. 7
(6) Gasoline. From the sale and from the storage, use, or other consumption in this state 8
of: (i) Gasoline and other products taxed under chapter 36 of title 31 and (ii) Fuels used for the 9
propulsion of airplanes. 10
(7) Purchase for manufacturing purposes. 11
(i) From the sale and from the storage, use, or other consumption in this state of computer 12
software, tangible personal property, electricity, natural gas, artificial gas, steam, refrigeration, and 13
water, when the property or service is purchased for the purpose of being manufactured into a 14
finished product for resale and becomes an ingredient, component, or integral part of the 15
manufactured, compounded, processed, assembled, or prepared product, or if the property or 16
service is consumed in the process of manufacturing for resale computer software, tangible personal 17
property, electricity, natural gas, artificial gas, steam, refrigeration, or water. 18
(ii) “Consumed” means destroyed, used up, or worn out to the degree or extent that the 19
property cannot be repaired, reconditioned, or rendered fit for further manufacturing use. 20
(iii) “Consumed” includes mere obsolescence. 21
(iv) “Manufacturing” means and includes: manufacturing, compounding, processing, 22
assembling, preparing, or producing. 23
(v) “Process of manufacturing” means and includes all production operations performed in 24
the producing or processing room, shop, or plant, insofar as the operations are a part of and 25
connected with the manufacturing for resale of tangible personal property, electricity, natural gas, 26
artificial gas, steam, refrigeration, or water and all production operations performed insofar as the 27
operations are a part of and connected with the manufacturing for resale of computer software. 28
(vi) “Process of manufacturing” does not mean or include administration operations such 29
as general office operations, accounting, collection, or sales promotion, nor does it mean or include 30
distribution operations that occur subsequent to production operations, such as handling, storing, 31
selling, and transporting the manufactured products, even though the administration and 32
distribution operations are performed by, or in connection with, a manufacturing business. 33
(8) State and political subdivisions. From the sale to, and from the storage, use, or other 34
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consumption by, this state, any city, town, district, or other political subdivision of this state. Every 1
redevelopment agency created pursuant to chapter 31 of title 45 is deemed to be a subdivision of 2
the municipality where it is located. 3
(9) Food and food ingredients. From the sale and storage, use, or other consumption in this 4
state of food and food ingredients as defined in § 44-18-7.1(l). 5
For the purposes of this exemption “food and food ingredients” shall not include candy, 6
soft drinks, dietary supplements, alcoholic beverages, tobacco, food sold through vending 7
machines, or prepared food, as those terms are defined in § 44-18-7.1, unless the prepared food is: 8
(i) Sold by a seller whose primary NAICS classification is manufacturing in sector 311, 9
except sub-sector 3118 (bakeries); 10
(ii) Sold in an unheated state by weight or volume as a single item; 11
(iii) Bakery items, including: bread, rolls, buns, biscuits, bagels, croissants, pastries, 12
donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, tortillas; and 13
is not sold with utensils provided by the seller, including: plates, knives, forks, spoons, 14
glasses, cups, napkins, or straws. 15
(10) Medicines, drugs, and durable medical equipment. From the sale and from the storage, 16
use, or other consumption in this state, of: 17
(i) “Drugs” as defined in § 44-18-7.1(h)(i), sold on prescriptions, medical oxygen, and 18
insulin whether or not sold on prescription. For purposes of this exemption drugs shall not include 19
over-the-counter drugs and grooming and hygiene products as defined in § 44-18-7.1(h)(iii). 20
(ii) Durable medical equipment as defined in § 44-18-7.1(k) for home use only, including, 21
but not limited to: syringe infusers, ambulatory drug delivery pumps, hospital beds, convalescent 22
chairs, and chair lifts. Supplies used in connection with syringe infusers and ambulatory drug 23
delivery pumps that are sold on prescription to individuals to be used by them to dispense or 24
administer prescription drugs, and related ancillary dressings and supplies used to dispense or 25
administer prescription drugs, shall also be exempt from tax. 26
(11) Prosthetic devices and mobility enhancing equipment. From the sale and from the 27
storage, use, or other consumption in this state, of prosthetic devices as defined in § 44-18-7.1(t), 28
sold on prescription, including, but not limited to: artificial limbs, dentures, spectacles, eyeglasses, 29
and artificial eyes; artificial hearing devices and hearing aids, whether or not sold on prescription; 30
and mobility enhancing equipment as defined in § 44-18-7.1(p), including wheelchairs, crutches, 31
and canes. 32
(12) Coffins, caskets, urns, shrouds and burial garments. From the sale and from the 33
storage, use, or other consumption in this state of coffins, caskets, burial containers, urns, urn liners, 34
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urn vaults, grave liners, grave vaults, burial tent setups, prayer cards, shrouds, and other burial 1
garments that are ordinarily sold by a funeral director as part of the business of funeral directing. 2
(13) Motor vehicles sold to nonresidents. 3
(i) From the sale, subsequent to June 30, 1958, of a motor vehicle to a bona fide nonresident 4
of this state who does not register the motor vehicle in this state, whether the sale or delivery of the 5
motor vehicle is made in this state or at the place of residence of the nonresident. A motor vehicle 6
sold to a bona fide nonresident whose state of residence does not allow a like exemption to its 7
nonresidents is not exempt from the tax imposed under § 44-18-20. In that event, the bona fide 8
nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate that would be imposed 9
in his or her state of residence not to exceed the rate that would have been imposed under § 44-18-10
20. Notwithstanding any other provisions of law, a licensed motor vehicle dealer shall add and 11
collect the tax required under this subdivision and remit the tax to the tax administrator under the 12
provisions of chapters 18 and 19 of this title. When a Rhode Island licensed, motor vehicle dealer 13
is required to add and collect the sales and use tax on the sale of a motor vehicle to a bona fide 14
nonresident as provided in this section, the dealer in computing the tax takes into consideration the 15
law of the state of the nonresident as it relates to the trade-in of motor vehicles. 16
(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 17
require any licensed motor vehicle dealer to keep records of sales to bona fide nonresidents as the 18
tax administrator deems reasonably necessary to substantiate the exemption provided in this 19
subdivision, including the affidavit of a licensed motor vehicle dealer that the purchaser of the 20
motor vehicle was the holder of, and had in his or her possession a valid out-of-state motor vehicle 21
registration or a valid out-of-state driver’s license. 22
(iii) Any nonresident who registers a motor vehicle in this state within ninety (90) days of 23
the date of its sale to him or her is deemed to have purchased the motor vehicle for use, storage, or 24
other consumption in this state, and is subject to, and liable for, the use tax imposed under the 25
provisions of § 44-18-20. 26
(14) Sales in public buildings by blind people. From the sale and from the storage, use, or 27
other consumption in all public buildings in this state of all products or wares by any person 28
licensed under § 40-9-11.1. 29
(15) Air and water pollution control facilities. From the sale, storage, use, or other 30
consumption in this state of tangible personal property or supplies acquired for incorporation into 31
or used and consumed in the operation of a facility, the primary purpose of which is to aid in the 32
control of the pollution or contamination of the waters or air of the state, as defined in chapter 12 33
of title 46 and chapter 23 of title 23, respectively, and that has been certified as approved for that 34
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purpose by the director of environmental management. The director of environmental management 1
may certify to a portion of the tangible personal property or supplies acquired for incorporation 2
into those facilities or used and consumed in the operation of those facilities to the extent that that 3
portion has as its primary purpose the control of the pollution or contamination of the waters or air 4
of this state. As used in this subdivision, “facility” means any land, facility, device, building, 5
machinery, or equipment. 6
(16) Camps. From the rental charged for living quarters, or sleeping, or housekeeping 7
accommodations at camps or retreat houses operated by religious, charitable, educational, or other 8
organizations and associations mentioned in subsection (5), or by privately owned and operated 9
summer camps for children. 10
(17) Certain institutions. From the rental charged for living or sleeping quarters in an 11
institution licensed by the state for the hospitalization, custodial, or nursing care of human beings. 12
(18) Educational institutions. From the rental charged by any educational institution for 13
living quarters, or sleeping, or housekeeping accommodations or other rooms or accommodations 14
to any student or teacher necessitated by attendance at an educational institution. “Educational 15
institution” as used in this section means an institution of learning not operated for profit that is 16
empowered to confer diplomas, educational, literary, or academic degrees; that has a regular 17
faculty, curriculum, and organized body of pupils or students in attendance throughout the usual 18
school year; that keeps and furnishes to students and others records required and accepted for 19
entrance to schools of secondary, collegiate, or graduate rank; and no part of the net earnings of 20
which inures to the benefit of any individual. 21
(19) Motor vehicle and adaptive equipment for persons with disabilities. 22
(i) From the sale of: (A) Special adaptations; (B) The component parts of the special 23
adaptations; or (C) A specially adapted motor vehicle; provided that the owner furnishes to the tax 24
administrator an affidavit of a licensed physician to the effect that the specially adapted motor 25
vehicle is necessary to transport a family member with a disability or where the vehicle has been 26
specially adapted to meet the specific needs of the person with a disability. This exemption applies 27
to not more than one motor vehicle owned and registered for personal, noncommercial use. 28
(ii) For the purpose of this subsection the term “special adaptations” includes, but is not 29
limited to: wheelchair lifts, wheelchair carriers, wheelchair ramps, wheelchair securements, hand 30
controls, steering devices, extensions, relocations, and crossovers of operator controls, power-31
assisted controls, raised tops or dropped floors, raised entry doors, or alternative signaling devices 32
to auditory signals. 33
(iii) From the sale of: (a) Special adaptations, (b) The component parts of the special 34
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adaptations, for a “wheelchair accessible taxicab” as defined in § 39-14-1, and/or a “wheelchair 1
accessible public motor vehicle” as defined in § 39-14.1-1. 2
(iv) For the purpose of this subdivision the exemption for a “specially adapted motor 3
vehicle” means a use tax credit not to exceed the amount of use tax that would otherwise be due on 4
the motor vehicle, exclusive of any adaptations. The use tax credit is equal to the cost of the special 5
adaptations, including installation. 6
(20) Heating fuels. From the sale and from the storage, use, or other consumption in this 7
state of every type of heating fuel. 8
(21) Electricity and gas. From the sale and from the storage, use, or other consumption in 9
this state of electricity and gas. 10
(22) Manufacturing machinery and equipment. 11
(i) From the sale and from the storage, use, or other consumption in this state of tools, dies, 12
molds, machinery, equipment (including replacement parts), and related items to the extent used in 13
an industrial plant in connection with the actual manufacture, conversion, or processing of tangible 14
personal property, or to the extent used in connection with the actual manufacture, conversion, or 15
processing of computer software as that term is utilized in industry numbers 7371, 7372, and 7373 16
in the standard industrial classification manual prepared by the Technical Committee on Industrial 17
Classification, Office of Statistical Standards, Executive Office of the President, United States 18
Bureau of the Budget, as revised from time to time, to be sold, or that machinery and equipment 19
used in the furnishing of power to an industrial manufacturing plant. For the purposes of this 20
subdivision, “industrial plant” means a factory at a fixed location primarily engaged in the 21
manufacture, conversion, or processing of tangible personal property to be sold in the regular 22
course of business; 23
(ii) Machinery and equipment and related items are not deemed to be used in connection 24
with the actual manufacture, conversion, or processing of tangible personal property, or in 25
connection with the actual manufacture, conversion, or processing of computer software as that 26
term is utilized in industry numbers 7371, 7372, and 7373 in the standard industrial classification 27
manual prepared by the Technical Committee on Industrial Classification, Office of Statistical 28
Standards, Executive Office of the President, United States Bureau of the Budget, as revised from 29
time to time, to be sold to the extent the property is used in administration or distribution operations; 30
(iii) Machinery and equipment and related items used in connection with the actual 31
manufacture, conversion, or processing of any computer software or any tangible personal property 32
that is not to be sold and that would be exempt under subdivision (7) or this subdivision if purchased 33
from a vendor or machinery and equipment and related items used during any manufacturing, 34
LC000539 - Page 15 of 29
converting, or processing function is exempt under this subdivision even if that operation, function, 1
or purpose is not an integral or essential part of a continuous production flow or manufacturing 2
process; 3
(iv) Where a portion of a group of portable or mobile machinery is used in connection with 4
the actual manufacture, conversion, or processing of computer software or tangible personal 5
property to be sold, as previously defined, that portion, if otherwise qualifying, is exempt under 6
this subdivision even though the machinery in that group is used interchangeably and not otherwise 7
identifiable as to use. 8
(23) Trade-in value of motor vehicles. From the sale and from the storage, use, or other 9
consumption in this state of so much of the purchase price paid for a new or used automobile as is 10
allocated for a trade-in allowance on the automobile of the buyer given in trade to the seller, or of 11
the proceeds applicable only to the automobile as are received from the manufacturer of 12
automobiles for the repurchase of the automobile whether the repurchase was voluntary or not 13
towards the purchase of a new or used automobile by the buyer. For the purpose of this subdivision, 14
the word “automobile” means a private passenger automobile not used for hire and does not refer 15
to any other type of motor vehicle. 16
(24) Precious metal bullion. 17
(i) From the sale and from the storage, use, or other consumption in this state of precious 18
metal bullion, substantially equivalent to a transaction in securities or commodities. 19
(ii) For purposes of this subdivision, “precious metal bullion” means any elementary 20
precious metal that has been put through a process of smelting or refining, including, but not limited 21
to: gold, silver, platinum, rhodium, and chromium, and that is in a state or condition that its value 22
depends upon its content and not upon its form. 23
(iii) The term does not include fabricated precious metal that has been processed or 24
manufactured for some one or more specific and customary industrial, professional, or artistic uses. 25
(25) Commercial vessels. From sales made to a commercial ship, barge, or other vessel of 26
fifty (50) tons burden or over, primarily engaged in interstate or foreign commerce, and from the 27
repair, alteration, or conversion of the vessels, and from the sale of property purchased for the use 28
of the vessels including provisions, supplies, and material for the maintenance and/or repair of the 29
vessels. 30
(26) Commercial fishing vessels. From the sale and from the storage, use, or other 31
consumption in this state of vessels and other watercraft that are in excess of five (5) net tons and 32
that are used exclusively for “commercial fishing,” as defined in this subdivision, and from the 33
repair, alteration, or conversion of those vessels and other watercraft, and from the sale of property 34
LC000539 - Page 16 of 29
purchased for the use of those vessels and other watercraft including provisions, supplies, and 1
material for the maintenance and/or repair of the vessels and other watercraft and the boats nets, 2
cables, tackle, and other fishing equipment appurtenant to or used in connection with the 3
commercial fishing of the vessels and other watercraft. “Commercial fishing” means taking or 4
attempting to take any fish, shellfish, crustacea, or bait species with the intent of disposing of it for 5
profit or by sale, barter, trade, or in commercial channels. The term does not include subsistence 6
fishing, i.e., the taking for personal use and not for sale or barter; or sport fishing; but shall include 7
vessels and other watercraft with a Rhode Island party and charter boat license issued by the 8
department of environmental management pursuant to § 20-2-27.1 that meet the following criteria: 9
(i) The operator must have a current United States Coast Guard (U.S.C.G.) license to carry 10
passengers for hire; (ii) U.S.C.G. vessel documentation in the coast wide fishery trade; (iii) 11
U.S.C.G. vessel documentation as to proof of Rhode Island home port status or a Rhode Island boat 12
registration to prove Rhode Island home port status; and (iv) The vessel must be used as a 13
commercial passenger carrying fishing vessel to carry passengers for fishing. The vessel must be 14
able to demonstrate that at least fifty percent (50%) of its annual gross income derives from charters 15
or provides documentation of a minimum of one hundred (100) charter trips annually; and (v) The 16
vessel must have a valid Rhode Island party and charter boat license. The tax administrator shall 17
implement the provisions of this subdivision by promulgating rules and regulations relating thereto. 18
(27) Clothing and footwear. From the sales of articles of clothing, including footwear, 19
intended to be worn or carried on or about the human body for sales prior to October 1, 2012. 20
Effective October 1, 2012, the exemption will apply to the sales of articles of clothing, including 21
footwear, intended to be worn or carried on or about the human body up to two hundred and fifty 22
dollars ($250) of the sales price per item. For the purposes of this section, “clothing or footwear” 23
does not include clothing accessories or equipment or special clothing or footwear primarily 24
designed for athletic activity or protective use as these terms are defined in § 44-18-7.1(f). In 25
recognition of the work being performed by the streamlined sales and use tax governing board, 26
upon passage of any federal law that authorizes states to require remote sellers to collect and remit 27
sales and use taxes, this unlimited exemption will apply as it did prior to October 1, 2012. The 28
unlimited exemption on sales of clothing and footwear shall take effect on the date that the state 29
requires remote sellers to collect and remit sales and use taxes. 30
(28) Water for residential use. From the sale and from the storage, use, or other 31
consumption in this state of water furnished for domestic use by occupants of residential premises. 32
(29) Bibles. [Unconstitutional; see Ahlburn v. Clark, 728 A.2d 449 (R.I. 1999); see Notes 33
to Decisions.] From the sale and from the storage, use, or other consumption in the state of any 34
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canonized scriptures of any tax-exempt nonprofit religious organization including, but not limited 1
to, the Old Testament and the New Testament versions. 2
(30) Boats. 3
(i) From the sale of a boat or vessel to a bona fide nonresident of this state who does not 4
register the boat or vessel in this state or document the boat or vessel with the United States 5
government at a home port within the state, whether the sale or delivery of the boat or vessel is 6
made in this state or elsewhere; provided, that the nonresident transports the boat within thirty (30) 7
days after delivery by the seller outside the state for use thereafter solely outside the state. 8
(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 9
require the seller of the boat or vessel to keep records of the sales to bona fide nonresidents as the 10
tax administrator deems reasonably necessary to substantiate the exemption provided in this 11
subdivision, including the affidavit of the seller that the buyer represented himself or herself to be 12
a bona fide nonresident of this state and of the buyer that he or she is a nonresident of this state. 13
(31) Youth activities equipment. From the sale, storage, use, or other consumption in this 14
state of items for not more than twenty dollars ($20.00) each by nonprofit Rhode Island 15
eleemosynary organizations, for the purposes of youth activities that the organization is formed to 16
sponsor and support; and by accredited elementary and secondary schools for the purposes of the 17
schools or of organized activities of the enrolled students. 18
(32) Farm equipment. From the sale and from the storage or use of machinery and 19
equipment used directly for commercial farming and agricultural production; including, but not 20
limited to: tractors, ploughs, harrows, spreaders, seeders, milking machines, silage conveyors, 21
balers, bulk milk storage tanks, trucks with farm plates, mowers, combines, irrigation equipment, 22
greenhouses and greenhouse coverings, graders and packaging machines, tools and supplies and 23
other farming equipment, including replacement parts appurtenant to or used in connection with 24
commercial farming and tools and supplies used in the repair and maintenance of farming 25
equipment. “Commercial farming” means the keeping or boarding of five (5) or more horses or the 26
production within this state of agricultural products, including, but not limited to, field or orchard 27
crops, livestock, dairy, and poultry, or their products, where the keeping, boarding, or production 28
provides at least two thousand five hundred dollars ($2,500) in annual gross sales to the operator, 29
whether an individual, a group, a partnership, or a corporation for exemptions issued prior to July 30
1, 2002. For exemptions issued or renewed after July 1, 2002, there shall be two (2) levels. Level I 31
shall be based on proof of annual, gross sales from commercial farming of at least twenty-five 32
hundred dollars ($2,500) and shall be valid for purchases subject to the exemption provided in this 33
subdivision except for motor vehicles with an excise tax value of five thousand dollars ($5,000) or 34
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greater. Level II shall be based on proof of annual gross sales from commercial farming of at least 1
ten thousand dollars ($10,000) or greater and shall be valid for purchases subject to the exemption 2
provided in this subdivision including motor vehicles with an excise tax value of five thousand 3
dollars ($5,000) or greater. For the initial issuance of the exemptions, proof of the requisite amount 4
of annual gross sales from commercial farming shall be required for the prior year; for any renewal 5
of an exemption granted in accordance with this subdivision at either level I or level II, proof of 6
gross annual sales from commercial farming at the requisite amount shall be required for each of 7
the prior two (2) years. Certificates of exemption issued or renewed after July 1, 2002, shall clearly 8
indicate the level of the exemption and be valid for four (4) years after the date of issue. This 9
exemption applies even if the same equipment is used for ancillary uses, or is temporarily used for 10
a non-farming or a non-agricultural purpose, but shall not apply to motor vehicles acquired after 11
July 1, 2002, unless the vehicle is a farm vehicle as defined pursuant to § 31-1-8 and is eligible for 12
registration displaying farm plates as provided for in § 31-3-31. 13
(33) Compressed air. From the sale and from the storage, use, or other consumption in the 14
state of compressed air. 15
(34) Flags. From the sale and from the storage, consumption, or other use in this state of 16
United States, Rhode Island or POW-MIA flags. 17
(35) Motor vehicle and adaptive equipment to certain veterans. From the sale of a motor 18
vehicle and adaptive equipment to and for the use of a veteran with a service-connected loss of or 19
the loss of use of a leg, foot, hand, or arm, or any veteran who is a double amputee, whether service 20
connected or not. The motor vehicle must be purchased by and especially equipped for use by the 21
qualifying veteran. Certificate of exemption or refunds of taxes paid is granted under rules or 22
regulations that the tax administrator may prescribe. 23
(36) Textbooks. From the sale and from the storage, use, or other consumption in this state 24
of textbooks by an “educational institution,” as defined in subsection (18) of this section, and any 25
educational institution within the purview of § 16-63-9(4), and used textbooks by any purveyor. 26
(37) Tangible personal property and supplies used in on-site hazardous waste recycling, 27
reuse, or treatment. From the sale, storage, use, or other consumption in this state of tangible 28
personal property or supplies used or consumed in the operation of equipment, the exclusive 29
function of which is the recycling, reuse, or recovery of materials (other than precious metals, as 30
defined in subdivision (24)(ii) of this section) from the treatment of “hazardous wastes,” as defined 31
in § 23-19.1-4, where the “hazardous wastes” are generated in Rhode Island solely by the same 32
taxpayer and where the personal property is located at, in, or adjacent to a generating facility of the 33
taxpayer in Rhode Island. The taxpayer shall procure an order from the director of the department 34
LC000539 - Page 19 of 29
of environmental management certifying that the equipment and/or supplies as used or consumed, 1
qualify for the exemption under this subdivision. If any information relating to secret processes or 2
methods of manufacture, production, or treatment is disclosed to the department of environmental 3
management only to procure an order, and is a “trade secret” as defined in § 28-21-10(b), it is not 4
open to public inspection or publicly disclosed unless disclosure is required under chapter 21 of 5
title 28 or chapter 24.4 of title 23. 6
(38) Promotional and product literature of boat manufacturers. From the sale and from the 7
storage, use, or other consumption of promotional and product literature of boat manufacturers 8
shipped to points outside of Rhode Island that either: (i) Accompany the product that is sold; (ii) 9
Are shipped in bulk to out-of-state dealers for use in the sale of the product; or (iii) Are mailed to 10
customers at no charge. 11
(39) Food items paid for by food stamps. From the sale and from the storage, use, or other 12
consumption in this state of eligible food items payment for which is properly made to the retailer 13
in the form of U.S. government food stamps issued in accordance with the Food Stamp Act of 1977, 14
7 U.S.C. § 2011 et seq. 15
(40) Transportation charges. From the sale or hiring of motor carriers as defined in § 39-16
12-2(12) to haul goods, when the contract or hiring cost is charged by a motor freight tariff filed 17
with the Rhode Island public utilities commission on the number of miles driven or by the number 18
of hours spent on the job. 19
(41) Trade-in value of boats. From the sale and from the storage, use, or other consumption 20
in this state of so much of the purchase price paid for a new or used boat as is allocated for a trade-21
in allowance on the boat of the buyer given in trade to the seller or of the proceeds applicable only 22
to the boat as are received from an insurance claim as a result of a stolen or damaged boat, towards 23
the purchase of a new or used boat by the buyer. 24
(42) Equipment used for research and development. From the sale and from the storage, 25
use, or other consumption of equipment to the extent used for research and development purposes 26
by a qualifying firm. For the purposes of this subsection, “qualifying firm” means a business for 27
which the use of research and development equipment is an integral part of its operation and 28
“equipment” means scientific equipment, computers, software, and related items. 29
(43) Coins. From the sale and from the other consumption in this state of coins having 30
numismatic or investment value. 31
(44) Farm structure construction materials. Lumber, hardware, and other materials used in 32
the new construction of farm structures, including production facilities such as, but not limited to: 33
farrowing sheds, free stall and stanchion barns, milking parlors, silos, poultry barns, laying houses, 34
LC000539 - Page 20 of 29
fruit and vegetable storages, rooting cellars, propagation rooms, greenhouses, packing rooms, 1
machinery storage, seasonal farm worker housing, certified farm markets, bunker and trench silos, 2
feed storage sheds, and any other structures used in connection with commercial farming. 3
(45) Telecommunications carrier access service. Carrier access service or 4
telecommunications service when purchased by a telecommunications company from another 5
telecommunications company to facilitate the provision of telecommunications service. 6
(46) Boats or vessels brought into the state exclusively for winter storage, maintenance, 7
repair, or sale. Notwithstanding the provisions of §§ 44-18-10, 44-18-11 and 44-18-20, the tax 8
imposed by § 44-18-20 is not applicable for the period commencing on the first day of October in 9
any year up to and including the 30th day of April next succeeding with respect to the use of any 10
boat or vessel within this state exclusively for purposes of: (i) Delivery of the vessel to a facility in 11
this state for storage, including dry storage and storage in water by means of apparatus preventing 12
ice damage to the hull, maintenance, or repair; (ii) The actual process of storage, maintenance, or 13
repair of the boat or vessel; or (iii) Storage for the purpose of selling the boat or vessel. 14
(47) Jewelry display product. From the sale and from the storage, use, or other 15
consumption in this state of tangible personal property used to display any jewelry product; 16
provided that title to the jewelry display product is transferred by the jewelry manufacturer or seller 17
and that the jewelry display product is shipped out of state for use solely outside the state and is not 18
returned to the jewelry manufacturer or seller. 19
(48) Boats or vessels generally. Notwithstanding the provisions of this chapter, the tax 20
imposed by §§ 44-18-20 and 44-18-18 shall not apply with respect to the sale and to the storage, 21
use, or other consumption in this state of any new or used boat. The exemption provided for in this 22
subdivision does not apply after October 1, 1993, unless prior to October 1, 1993, the federal ten 23
percent (10%) surcharge on luxury boats is repealed. 24
(49) Banks and regulated investment companies interstate toll-free calls. Notwithstanding 25
the provisions of this chapter, the tax imposed by this chapter does not apply to the furnishing of 26
interstate and international, toll-free terminating telecommunication service that is used directly 27
and exclusively by or for the benefit of an eligible company as defined in this subdivision; provided 28
that an eligible company employs on average during the calendar year no less than five hundred 29
(500) “full-time equivalent employees” as that term is defined in § 42-64.5-2. For purposes of this 30
section, an “eligible company” means a “regulated investment company” as that term is defined in 31
the Internal Revenue Code of 1986, 26 U.S.C. § 851, or a corporation to the extent the service is 32
provided, directly or indirectly, to or on behalf of a regulated investment company, an employee 33
benefit plan, a retirement plan or a pension plan, or a state-chartered bank. 34
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(50) Mobile and manufactured homes generally. From the sale and from the storage, use, 1
or other consumption in this state of mobile and/or manufactured homes as defined and subject to 2
taxation pursuant to the provisions of chapter 44 of title 31. 3
(51) Manufacturing business reconstruction materials. 4
(i) From the sale and from the storage, use, or other consumption in this state of lumber, 5
hardware, and other building materials used in the reconstruction of a manufacturing business 6
facility that suffers a disaster, as defined in this subdivision, in this state. “Disaster” means any 7
occurrence, natural or otherwise, that results in the destruction of sixty percent (60%) or more of 8
an operating manufacturing business facility within this state. “Disaster” does not include any 9
damage resulting from the willful act of the owner of the manufacturing business facility. 10
(ii) Manufacturing business facility includes, but is not limited to, the structures housing 11
the production and administrative facilities. 12
(iii) In the event a manufacturer has more than one manufacturing site in this state, the sixty 13
percent (60%) provision applies to the damages suffered at that one site. 14
(iv) To the extent that the costs of the reconstruction materials are reimbursed by insurance, 15
this exemption does not apply. 16
(52) Tangible personal property and supplies used in the processing or preparation of floral 17
products and floral arrangements. From the sale, storage, use, or other consumption in this state of 18
tangible personal property or supplies purchased by florists, garden centers, or other like producers 19
or vendors of flowers, plants, floral products, and natural and artificial floral arrangements that are 20
ultimately sold with flowers, plants, floral products, and natural and artificial floral arrangements 21
or are otherwise used in the decoration, fabrication, creation, processing, or preparation of flowers, 22
plants, floral products, or natural and artificial floral arrangements, including descriptive labels, 23
stickers, and cards affixed to the flower, plant, floral product, or arrangement, artificial flowers, 24
spray materials, floral paint and tint, plant shine, flower food, insecticide, and fertilizers. 25
(53) Horse food products. From the sale and from the storage, use, or other consumption 26
in this state of horse food products purchased by a person engaged in the business of the boarding 27
of horses. 28
(54) Non-motorized recreational vehicles sold to nonresidents. 29
(i) From the sale, subsequent to June 30, 2003, of a non-motorized recreational vehicle to 30
a bona fide nonresident of this state who does not register the non-motorized recreational vehicle 31
in this state, whether the sale or delivery of the non-motorized recreational vehicle is made in this 32
state or at the place of residence of the nonresident; provided that a non-motorized recreational 33
vehicle sold to a bona fide nonresident whose state of residence does not allow a like exemption to 34
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its nonresidents is not exempt from the tax imposed under § 44-18-20; provided, further, that in 1
that event the bona fide nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate 2
that would be imposed in his or her state of residence not to exceed the rate that would have been 3
imposed under § 44-18-20. Notwithstanding any other provisions of law, a licensed, non-motorized 4
recreational vehicle dealer shall add and collect the tax required under this subdivision and remit 5
the tax to the tax administrator under the provisions of chapters 18 and 19 of this title. Provided, 6
that when a Rhode Island licensed, non-motorized recreational vehicle dealer is required to add and 7
collect the sales and use tax on the sale of a non-motorized recreational vehicle to a bona fide 8
nonresident as provided in this section, the dealer in computing the tax takes into consideration the 9
law of the state of the nonresident as it relates to the trade-in of motor vehicles. 10
(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 11
require any licensed, non-motorized recreational vehicle dealer to keep records of sales to bona fide 12
nonresidents as the tax administrator deems reasonably necessary to substantiate the exemption 13
provided in this subdivision, including the affidavit of a licensed, non-motorized recreational 14
vehicle dealer that the purchaser of the non-motorized recreational vehicle was the holder of, and 15
had in his or her possession a valid out-of-state non-motorized recreational vehicle registration or 16
a valid out-of-state driver’s license. 17
(iii) Any nonresident who registers a non-motorized recreational vehicle in this state within 18
ninety (90) days of the date of its sale to him or her is deemed to have purchased the non-motorized 19
recreational vehicle for use, storage, or other consumption in this state, and is subject to, and liable 20
for, the use tax imposed under the provisions of § 44-18-20. 21
(iv) “Non-motorized recreational vehicle” means any portable dwelling designed and 22
constructed to be used as a temporary dwelling for travel, camping, recreational, and vacation use 23
that is eligible to be registered for highway use, including, but not limited to, “pick-up coaches” or 24
“pick-up campers,” “travel trailers,” and “tent trailers” as those terms are defined in chapter 1 of 25
title 31. 26
(55) Sprinkler and fire alarm systems in existing buildings. From the sale in this state of 27
sprinkler and fire alarm systems; emergency lighting and alarm systems; and the materials 28
necessary and attendant to the installation of those systems that are required in buildings and 29
occupancies existing therein in July 2003 in order to comply with any additional requirements for 30
such buildings arising directly from the enactment of the Comprehensive Fire Safety Act of 2003 31
and that are not required by any other provision of law or ordinance or regulation adopted pursuant 32
to that act. The exemption provided in this subdivision shall expire on December 31, 2008. 33
(56) Aircraft. Notwithstanding the provisions of this chapter, the tax imposed by §§ 44-34
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18-18 and 44-18-20 shall not apply with respect to the sale and to the storage, use, or other 1
consumption in this state of any new or used aircraft or aircraft parts. 2
(57) Renewable energy products. Notwithstanding any other provisions of Rhode Island 3
general laws, the following products shall also be exempt from sales tax: solar photovoltaic 4
modules or panels, or any module or panel that generates electricity from light; solar thermal 5
collectors, including, but not limited to, those manufactured with flat glass plates, extruded plastic, 6
sheet metal, and/or evacuated tubes; geothermal heat pumps, including both water-to-water and 7
water-to-air type pumps; wind turbines; towers used to mount wind turbines if specified by or sold 8
by a wind turbine manufacturer; DC to AC inverters that interconnect with utility power lines; and 9
manufactured mounting racks and ballast pans for solar collector, module, or panel installation. Not 10
to include materials that could be fabricated into such racks; monitoring and control equipment, if 11
specified or supplied by a manufacturer of solar thermal, solar photovoltaic, geothermal, or wind 12
energy systems or if required by law or regulation for such systems but not to include pumps, fans 13
or plumbing or electrical fixtures unless shipped from the manufacturer affixed to, or an integral 14
part of, another item specified on this list; and solar storage tanks that are part of a solar domestic 15
hot water system or a solar space heating system. If the tank comes with an external heat exchanger 16
it shall also be tax exempt, but a standard hot water tank is not exempt from state sales tax. 17
(58) Returned property. The amount charged for property returned by customers upon 18
rescission of the contract of sale when the entire amount exclusive of handling charges paid for the 19
property is refunded in either cash or credit, and where the property is returned within one hundred 20
twenty (120) days from the date of delivery. 21
(59) Dietary supplements. From the sale and from the storage, use, or other consumption 22
of dietary supplements as defined in § 44-18-7.1(l)(v), sold on prescriptions. 23
(60) Blood. From the sale and from the storage, use, or other consumption of human blood. 24
(61) Agricultural products for human consumption. From the sale and from the storage, 25
use, or other consumption of livestock and poultry of the kinds of products that ordinarily constitute 26
food for human consumption and of livestock of the kind the products of which ordinarily constitute 27
fibers for human use. 28
(62) Diesel emission control technology. From the sale and use of diesel retrofit 29
technology that is required by § 31-47.3-4. 30
(63) Feed for certain animals used in commercial farming. From the sale of feed for 31
animals as described in subsection (61) of this section. 32
(64) Alcoholic beverages. From the sale and storage, use, or other consumption in this 33
state by a Class A licensee of alcoholic beverages, as defined in § 44-18-7.1, excluding beer and 34
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malt beverages; provided, further, notwithstanding § 6-13-1 or any other general or public law to 1
the contrary, alcoholic beverages, as defined in § 44-18-7.1, shall not be subject to minimum 2
markup. 3
(65) Seeds and plants used to grow food and food ingredients. From the sale, storage, use, 4
or other consumption in this state of seeds and plants used to grow food and food ingredients as 5
defined in § 44-18-7.1(l)(i). “Seeds and plants used to grow food and food ingredients” shall not 6
include marijuana seeds or plants. 7
(66) Feminine hygiene products. From the sale and from the storage, use, or other 8
consumption of tampons, panty liners, menstrual cups, sanitary napkins, and other similar products 9
the principal use of which is feminine hygiene in connection with the menstrual cycle. 10
(67) “Breast pump collection and storage supplies” means items of tangible personal 11
property used in conjunction with a breast pump to collect milk expressed from a human breast and 12
to store collected milk until it is ready for consumption. “Breast pump collection and storage 13
supplies” include, but are not limited to, breast shields and breast shield connectors; breast pump 14
tubes and tubing adaptors; breast pump valves and membranes; backflow protectors and backflow 15
protector adaptors; bottles and bottle caps specific to the operation of the breast pump; breast milk 16
storage bags; and related items sold as part of a breast pump kit pre-packaged by the breast pump 17
manufacturer. “Breast pump collection and storage supplies” does not include: bottles and bottle 18
caps not specific to the operation of the breast pump; breast pump travel bags and other similar 19
carrying accessories, including ice packs, labels, and other similar products, unless sold as part of 20
a breast pump kit pre-packed by the breast pump manufacturer; breast pump cleaning supplies, 21
unless sold as part of a breast pump kit pre-packaged by the breast pump manufacturer; nursing 22
bras, bra pads, breast shells, and other similar products; and creams, ointments, and other similar 23
products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples. 24
(68) Trade-in value of motorcycles. From the sale and from the storage, use, or other 25
consumption in this state of so much of the purchase price paid for a new or used motorcycle as is 26
allocated for a trade-in allowance on the motorcycle of the buyer given in trade to the seller, or of 27
the proceeds applicable only to the motorcycle as are received from the manufacturer of 28
motorcycles for the repurchase of the motorcycle whether the repurchase was voluntary or not 29
towards the purchase of a new or used motorcycle by the buyer. For the purpose of this subsection, 30
the word “motorcycle” means a motorcycle not used for hire and does not refer to any other type 31
of motor vehicle. 32
(69 Forestry product operations equipment and parts. From the sale and from the storage 33
or use of machinery and equipment and parts used directly for forest product operations engaged 34
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in commercial production including, but not limited to: chainsaws, tree chippers, mulch grinders, 1
chip screeners, sawdust blowers, conveyors, power generators , firewood processors, log skidders, 2
wood splitters, disc cleaners, tumblers, shaving mills, loaders, forklifts, firewood kilns, pallet kilns, 3
lumber kilns, sawdust dryers, forwarders, sawmills, resaws, edgers, planers, debarkers, live log 4
decks, green chains, tractors, winches, tree harvesters, feller bunchers, log loaders, slashers, 5
delimbers, grapples, bucket trucks, tree cranes, and stump grinders. "Forest product operations" 6
shall have the same meaning as defined in § 2-27.1-4. The exemption shall be valid for small 7
businesses, as defined in § 22-7.6-1, that employ no more than three hundred (300) employees and 8
shall apply to no more than two million five hundred thousand dollars ($2,500,000) in forest 9
operations equipment and parts. 10
SECTION 9. Section 44-27-1 of the General Laws in Chapter 44-27 entitled "Taxation of 11
Farm, Forest, and Open Space Land" is hereby amended to read as follows: 12
44-27-1. Legislative declaration. 13
It is declared: 14
(1) That it is in the public interest to encourage the preservation of farm, forest, and open 15
space land in order to maintain a readily available source of food, and farm and forest products 16
close to the metropolitan areas of the state, to conserve the state’s natural resources, and to provide 17
for the welfare and happiness of the inhabitants of the state. 18
(2) That it is in the public interest to prevent the forced conversion of farm, forest, and open 19
space land to more intensive uses as the result of economic pressures caused by the assessment for 20
purposes of property taxation at values incompatible with their preservation as farm, forest, and 21
open space land. 22
(3) That the necessity in the public interest of the enactment of the provisions of this chapter 23
is a matter of legislative determination. 24
SECTION 10. Section 45-24-37 of the General Laws in Chapter 45-24 entitled "Zoning 25
Ordinances" is hereby amended to read as follows: 26
45-24-37. General provisions — Permitted uses. 27
(a) The zoning ordinance shall provide a listing of all land uses and/or performance 28
standards for uses that are permitted within the zoning use districts of the municipality. The 29
ordinance may provide for a procedure under which a proposed land use that is not specifically 30
listed may be presented by the property owner to the zoning board of review or to a local official 31
or agency charged with administration and enforcement of the ordinance for an evaluation and 32
determination of whether the proposed use is of a similar type, character, and intensity as a listed 33
permitted use. Upon such determination, the proposed use may be considered to be a permitted use. 34
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(b) Notwithstanding any other provision of this chapter, the following uses are permitted 1
uses within all residential zoning use districts of a municipality and all industrial and commercial 2
zoning use districts except where residential use is prohibited for public health or safety reasons: 3
(1) Households; 4
(2) Community residences; and 5
(3) Family daycare homes. 6
(c) Any time a building or other structure used for residential purposes, or a portion of a 7
building containing residential units, is rendered uninhabitable by virtue of a casualty such as fire 8
or flood, the owner of the property is allowed to park, temporarily, mobile and manufactured home, 9
or homes, as the need may be, elsewhere upon the land, for use and occupancy of the former 10
occupants for a period of up to twelve (12) months, or until the building or structure is rehabilitated 11
and otherwise made fit for occupancy. The property owner, or a properly designated agent of the 12
owner, is only allowed to cause the mobile and manufactured home, or homes, to remain 13
temporarily upon the land by making timely application to the local building official for the 14
purposes of obtaining the necessary permits to repair or rebuild the structure. 15
(d) Notwithstanding any other provision of this chapter, appropriate access for people with 16
disabilities to residential structures is allowed as a reasonable accommodation for any person(s) 17
residing, or intending to reside, in the residential structure. 18
(e) Notwithstanding any other provision of this chapter, an accessory dwelling unit 19
(“ADU”) that meets the requirements of §§ 45-24-31 and 45-24-73(a) shall be a permitted use in 20
all residential zoning districts. An ADU that meets the requirements of §§ 45-24-31 and 45-24-21
73(a) shall be permitted through an administrative building permit process only. 22
(f) When used in this section the terms “people with disabilities” or “member, or members, 23
with disabilities” means a person(s) who has a physical or mental impairment that substantially 24
limits one or more major life activities, as defined in 42-87-1(5). 25
(g) Notwithstanding any other provisions of this chapter, plant agriculture is a permitted 26
use and forest product operations, as defined in § 2-27.1-4 are permitted uses within all zoning 27
districts of a municipality, including all industrial and commercial zoning districts, except where 28
prohibited for public health or safety reasons or the protection of wildlife habitat. 29
(h) Adaptive reuse. Notwithstanding any other provisions of this chapter, adaptive reuse 30
for the conversion of any commercial building, including offices, schools, religious facilities, 31
medical buildings, and malls into residential units or mixed-use developments which include the 32
development of at least fifty percent (50%) of the existing gross floor area into residential units, 33
shall be a permitted use and allowed by specific and objective provisions of a zoning ordinance, 34
LC000539 - Page 27 of 29
except where such is prohibited by environmental land use restrictions recorded on the property by 1
the state of Rhode Island department of environmental management or the United States 2
Environmental Protection Agency preventing the conversion to residential use. 3
(1) The specific zoning ordinance provisions for adaptive reuse shall exempt adaptive reuse 4
developments from off-street parking requirements of over one space per dwelling unit. 5
(2) Density. 6
(i) For projects that meet the following criteria, zoning ordinances shall allow for high 7
density development and shall not limit the density to less than fifteen (15) dwelling units per acre: 8
(A) Where the project is limited to the existing footprint, except that the footprint is allowed 9
to be expanded to accommodate upgrades related to the building and fire codes and utilities; and 10
(B) The development includes at least twenty percent (20%) low- and moderate-income 11
housing; and 12
(C) The development has access to public sewer and water service or has access to adequate 13
private water, such as a well and and/or wastewater treatment system(s) approved by the relevant 14
state agency for the entire development as applicable. 15
(ii) For all other adaptive reuse projects, the residential density permitted in the converted 16
structure shall be the maximum allowed that otherwise meets all standards of minimum housing 17
and has access to public sewer and water service or has access to adequate private water, such as a 18
well, and wastewater treatment system(s) approved by the relevant state agency for the entire 19
development, as applicable. The density proposed shall be determined to meet all public health and 20
safety standards. 21
(3) Notwithstanding any other provisions of this chapter, for adaptive reuse projects, 22
existing building setbacks shall remain and shall be considered legal nonconforming, but no 23
additional encroachments shall be permitted into any nonconforming setback, unless otherwise 24
allowed by zoning ordinance or relief is granted by the applicable authority. 25
(4) For adaptive reuse projects, notwithstanding any other provisions of this chapter, the 26
height of the existing structure, if it exceeds the maximum height of the zoning district, may remain 27
and shall be considered legal nonconforming, and any rooftop construction shall be included within 28
the height exemption. 29
(i) Notwithstanding any other provisions of this chapter, all towns and cities may allow 30
manufactured homes that comply with § 23-27.3-109.1.3 as a type of single-family home on any 31
lot zoned for single-family use. Such home shall comply with all dimensional requirements of a 32
single-family home in the district or seek relief for the same under the provisions of this chapter. 33
SECTION 11. Construction. This act, being necessary for the welfare of the state and its 34
LC000539 - Page 28 of 29
inhabitants, shall be construed liberally so as to effectuate its purposes. 1
SECTION 12. Severability. If any clause, sentence, paragraph, section, or part of this act 2
shall be adjudged by any court of competent jurisdiction to be invalid, that judgment shall not 3
affect, impair, or invalidate the remainder of this act but shall be confined in its operation to the 4
clause, sentence, paragraph, section, or part directly involved in the controversy in which that 5
judgment shall have been rendered. 6
SECTION 13. This act shall take effect upon passage. 7
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO AGRICULTURE AND FORESTRY -- FORESTRY AND FOREST PARITY
ACT
***
This act would establish sales and use tax exemptions for commercial forest product 1
operations with gross sales of at least five thousand dollars ($5,000). The exemption would be 2
provided at two (2) levels with the distinction being operations generating less than fifty thousand 3
dollars ($50,000) in average sales would be limited to an exemption on motor vehicles up to five 4
thousand dollars ($5,000) in value. Exempt would be machinery and equipment to include, but not 5
limited to: sawmills, tractors, forklifts, log skidders, chainsaws and power generators. Additionally, 6
the act would create a new motor vehicle registration for "forestry vehicles" and would provide that 7
all forestry product operations machinery, including motor vehicles with forestry registration plates 8
would be exempt from taxation. Municipalities would be allowed to tax forestry product operations 9
buildings at a rate that reflects the actual cost incurred by the municipality in providing services to 10
these buildings. Finally, this act would provide that forest product operations are permitted uses 11
within all zoning districts of a municipality except where prohibited for public health or safety 12
reasons or the protection of wildlife habitat. 13
This act would take effect upon passage. 14
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