Rhode Island 2025 Regular Session

Rhode Island House Bill H5286 Compare Versions

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

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5	5	2025 -- H 5286
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7	7	LC001049
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
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: Representatives Baginski, McNamara, J. Brien, and Finkelman
18	18	Date Introduced: January 31, 2025
19	19	Referred To: House Finance
20	20
21	21
22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Section 44-18-7.1 of the General Laws in Chapter 44-18 entitled "Sales and 1
24	24	Use Taxes — Liability and Computation" is hereby amended to read as follows: 2
25	25	44-18-7.1. Additional definitions. 3
26	26	(a) “Agreement” means the streamlined sales and use tax agreement. 4
27	27	(b) “Alcoholic beverages” means beverages, including, without limitation, beer and malt 5
28	28	beverages, that are suitable for human consumption and contain one-half of one percent (.5%) or 6
29	29	more of alcohol by volume. 7
30	30	(c) “Bundled transaction” is the retail sale of two or more products, except real property 8
31	31	and services to real property, where (1) The products are otherwise distinct and identifiable, and 9
32	32	(2) The products are sold for one non-itemized price. A “bundled transaction” does not include the 10
33	33	sale of any products in which the “sales price” varies, or is negotiable, based on the selection by 11
34	34	the purchaser of the products included in the transaction. 12
35	35	(i) “Distinct and identifiable products” does not include: 13
36	36	(A) Packaging — such as containers, boxes, sacks, bags, and bottles — or other materials 14
37	37	— such as wrapping, labels, tags, and instruction guides — that accompany the “retail sale” of the 15
38	38	products and are incidental or immaterial to the “retail sale” thereof. Examples of packaging that 16
39	39	are incidental or immaterial include grocery sacks, shoeboxes, dry cleaning garment bags, and 17
40	40	express delivery envelopes and boxes. 18
41	41
42	42
43	43	LC001049 - Page 2 of 30
44	44	(B) A product provided free of charge with the required purchase of another product. A 1
45	45	product is “provided free of charge” if the “sales price” of the product purchased does not vary 2
46	46	depending on the inclusion of the products “provided free of charge.” 3
47	47	(C) Items included in the member state’s definition of “sales price,” pursuant to appendix 4
48	48	C of the agreement. 5
49	49	(ii) The term “one non-itemized price” does not include a price that is separately identified 6
50	50	by product on binding sales or other supporting sales-related documentation made available to the 7
51	51	customer in paper or electronic form including, but not limited to, an invoice, bill of sale, receipt, 8
52	52	contract, service agreement, lease agreement, periodic notice of rates and services, rate card, or 9
53	53	price list. 10
54	54	(iii) A transaction that otherwise meets the definition of a “bundled transaction” as defined 11
55	55	above, is not a “bundled transaction” if it is: 12
56	56	(A) The “retail sale” of tangible personal property and a service where the tangible personal 13
57	57	property is essential to the use of the service, and is provided exclusively in connection with the 14
58	58	service, and the true object of the transaction is the service; or 15
59	59	(B) The “retail sale” of services where one service is provided that is essential to the use 16
60	60	or receipt of a second service and the first service is provided exclusively in connection with the 17
61	61	second service and the true object of the transaction is the second service; or 18
62	62	(C) A transaction that includes taxable products and nontaxable products and the “purchase 19
63	63	price” or “sales price” of the taxable products is de minimis. 20
64	64	1. De minimis means the seller’s “purchase price” or “sales price” of the taxable products 21
65	65	is ten percent (10%) or less of the total “purchase price” or “sales price” of the bundled products. 22
66	66	2. Sellers shall use either the “purchase price” or the “sales price” of the products to 23
67	67	determine if the taxable products are de minimis. Sellers may not use a combination of the 24
68	68	“purchase price” and “sales price” of the products to determine if the taxable products are de 25
69	69	minimis. 26
70	70	3. Sellers shall use the full term of a service contract to determine if the taxable products 27
71	71	are de minimis; or 28
72	72	(D) The “retail sale” of exempt tangible personal property and taxable tangible personal 29
73	73	property where: 30
74	74	1. The transaction includes “food and food ingredients,” “drugs,” “durable medical 31
75	75	equipment,” “mobility enhancing equipment,” “over-the-counter drugs,” “prosthetic devices” (all 32
76	76	as defined in this section) or medical supplies; and 33
77	77	2. Where the seller’s “purchase price” or “sales price” of the taxable tangible personal 34
78	78
79	79
80	80	LC001049 - Page 3 of 30
81	81	property is fifty percent (50%) or less of the total “purchase price” or “sales price” of the bundled 1
82	82	tangible personal property. Sellers may not use a combination of the “purchase price” and “sales 2
83	83	price” of the tangible personal property when making the fifty percent (50%) determination for a 3
84	84	transaction. 4
85	85	(d) “Certified automated system (CAS)” means software certified under the agreement to 5
86	86	calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit 6
87	87	to the appropriate state, and maintain a record of the transaction. 7
88	88	(e) “Certified service provider (CSP)” means an agent certified under the agreement to 8
89	89	perform all the seller’s sales and use tax functions, other than the seller’s obligation to remit tax on 9
90	90	its own purchases. 10
91	91	(f) Clothing and related items.(i) “Clothing” means all human wearing apparel suitable for 11
92	92	general use. 12
93	93	(ii) “Clothing accessories or equipment” means incidental items worn on the person or in 13
94	94	conjunction with “clothing.” “Clothing accessories or equipment” does not include “clothing,” 14
95	95	“sport or recreational equipment,” or “protective equipment.” 15
96	96	(iii) “Protective equipment” means items for human wear and designed as protection of the 16
97	97	wearer against injury or disease or as protections against damage or injury of other persons or 17
98	98	property but not suitable for general use. “Protective equipment” does not include “clothing,” 18
99	99	“clothing accessories or equipment,” and “sport or recreational equipment.” 19
100	100	(iv) “Sport or recreational equipment” means items designed for human use and worn in 20
101	101	conjunction with an athletic or recreational activity that are not suitable for general use. “Sport or 21
102	102	recreational equipment” does not include “clothing,” “clothing accessories or equipment,” and 22
103	103	“protective equipment.” 23
104	104	(g) Computer and related items.(i) “Computer” means an electronic device that accepts 24
105	105	information in digital or similar form and manipulates it for a result based on a sequence of 25
106	106	instructions. 26
107	107	(ii) “Computer software” means a set of coded instructions designed to cause a “computer” 27
108	108	or automatic data processing equipment to perform a task. 28
109	109	(iii) “Delivered electronically” means delivered to the purchaser by means other than 29
110	110	tangible storage media. 30
111	111	(iv) “Electronic” means relating to technology having electrical, digital, magnetic, 31
112	112	wireless, optical, electromagnetic, or similar capabilities. 32
113	113	(v) “Load and leave” means delivery to the purchaser by use of a tangible storage media 33
114	114	where the tangible storage media is not physically transferred to the purchaser. 34
115	115
116	116
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118	118	(vi) “Prewritten computer software” means “computer software,” including prewritten 1
119	119	upgrades, that is not designed and developed by the author or other creator to the specifications of 2
120	120	a specific purchaser. The combining of two (2) or more “prewritten computer software” programs 3
121	121	or prewritten portions thereof does not cause the combination to be other than “prewritten computer 4
122	122	software.” “Prewritten computer software” includes software designed and developed by the 5
123	123	author or other creator to the specifications of a specific purchaser when it is sold to a person other 6
124	124	than the specific purchaser. Where a person modifies or enhances “computer software” of which 7
125	125	the person is not the author or creator, the person shall be deemed to be the author or creator only 8
126	126	of such person’s modifications or enhancements. “Prewritten computer software” or a prewritten 9
127	127	portion thereof that is modified or enhanced to any degree, where such modification or 10
128	128	enhancement is designed and developed to the specifications of a specific purchaser, remains 11
129	129	“prewritten computer software”; provided, however, that where there is a reasonable, separately 12
130	130	stated charge or an invoice or other statement of the price given to the purchaser for such 13
131	131	modification or enhancement, such modification or enhancement shall not constitute “prewritten 14
132	132	computer software.” 15
133	133	(vii) “Vendor-hosted prewritten computer software” means prewritten computer software 16
134	134	that is accessed through the internet and/or a vendor-hosted server regardless of whether the access 17
135	135	is permanent or temporary and regardless of whether any downloading occurs. 18
136	136	(h) Drugs and related items.(i) “Drug” means a compound, substance, or preparation, and 19
137	137	any component of a compound, substance, or preparation, other than “food and food ingredients,” 20
138	138	“dietary supplements” or “alcoholic beverages”: 21
139	139	(A) Recognized in the official United States Pharmacopoeia, official Homeopathic 22
140	140	Pharmacopoeia of the United States, or official National Formulary, and supplement to any of them; 23
141	141	or 24
142	142	(B) Intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease; 25
143	143	or 26
144	144	(C) Intended to affect the structure or any function of the body. 27
145	145	“Drug” shall also include insulin and medical oxygen whether or not sold on prescription. 28
146	146	(ii) “Over-the-counter drug” means a drug that contains a label that identifies the product 29
147	147	as a drug as required by 21 C.F.R. § 201.66. The “over-the-counter drug” label includes: 30
148	148	(A) A “Drug Facts” panel; or 31
149	149	(B) A statement of the “active ingredient(s)” with a list of those ingredients contained in 32
150	150	the compound, substance, or preparation. 33
151	151	“Over-the-counter drug” shall not include “grooming and hygiene products.” 34
152	152
153	153
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155	155	(iii) “Grooming and hygiene products” are soaps and cleaning solutions, shampoo, 1
156	156	toothpaste, mouthwash, antiperspirants, and suntan lotions and screens, regardless of whether the 2
157	157	items meet the definition of “over-the-counter drugs.” 3
158	158	(iv) “Prescription” means an order, formula, or recipe issued in any form of oral, written, 4
159	159	electronic, or other means of transmission by a duly licensed practitioner authorized by the laws of 5
160	160	the member state. 6
161	161	(i) “Delivery charges” means charges by the seller of personal property or services for 7
162	162	preparation and delivery to a location designated by the purchaser of personal property or services 8
163	163	including, but not limited to: transportation, shipping, postage, handling, crating, and packing. 9
164	164	“Delivery charges” shall not include the charges for delivery of “direct mail” if the charges 10
165	165	are separately stated on an invoice or similar billing document given to the purchaser. 11
166	166	(j) “Direct mail” means printed material delivered or distributed by United States mail or 12
167	167	other delivery service to a mass audience or to addressees on a mailing list provided by the 13
168	168	purchaser or at the direction of the purchaser when the cost of the items are not billed directly to 14
169	169	the recipients. “Direct mail” includes tangible personal property supplied directly or indirectly by 15
170	170	the purchaser to the direct mail seller for inclusion in the package containing the printed material. 16
171	171	“Direct mail” does not include multiple items of printed material delivered to a single address. 17
172	172	(k) “Durable medical equipment” means equipment including repair and replacement parts 18
173	173	for same which: 19
174	174	(i) Can withstand repeated use; and 20
175	175	(ii) Is primarily and customarily used to serve a medical purpose; and 21
176	176	(iii) Generally is not useful to a person in the absence of illness or injury; and 22
177	177	(iv) Is not worn in or on the body. 23
178	178	Durable medical equipment does not include mobility enhancing equipment. 24
179	179	(l) Food and related items.(i) “Food and food ingredients” means substances, whether in 25
180	180	liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing 26
181	181	by humans and are consumed for their taste or nutritional value. “Food and food ingredients” does 27
182	182	not include “alcoholic beverages,” “tobacco,” “candy,” “dietary supplements,” and “soft drinks.” 28
183	183	(ii) “Prepared food” means: 29
184	184	(A) Food sold in a heated state or heated by the seller; 30
185	185	(B) Two (2) or more food ingredients mixed or combined by the seller for sale as a single 31
186	186	item; or 32
187	187	(C) Food sold with eating utensils provided by the seller, including: plates, knives, forks, 33
188	188	spoons, glasses, cups, napkins, or straws. A plate does not include a container or packaging used 34
189	189
190	190
191	191	LC001049 - Page 6 of 30
192	192	to transport the food. 1
193	193	“Prepared food” in subsection (l)(ii)(B) does not include food that is only cut, repackaged, 2
194	194	or pasteurized by the seller, and eggs, fish, meat, poultry, and foods containing these raw animal 3
195	195	foods requiring cooking by the consumer as recommended by the Food and Drug Administration 4
196	196	in chapter 3, part 401.11 of its Food Code so as to prevent food borne illnesses. 5
197	197	(iii) “Candy” means a preparation of sugar, honey, or other natural or artificial sweeteners 6
198	198	in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, 7
199	199	drops, or pieces. “Candy” shall not include any preparation containing flour and shall require no 8
200	200	refrigeration. 9
201	201	(iv) “Soft drinks” means non-alcoholic beverages that contain natural or artificial 10
202	202	sweeteners. “Soft drinks” do not include beverages that contain milk or milk products, soy, rice, 11
203	203	or similar milk substitutes, or greater than fifty percent (50%) of vegetable or fruit juice by volume. 12
204	204	(v) “Dietary supplement” means any product, other than “tobacco,” intended to supplement 13
205	205	the diet that: 14
206	206	(A) Contains one or more of the following dietary ingredients: 15
207	207	1. A vitamin; 16
208	208	2. A mineral; 17
209	209	3. An herb or other botanical; 18
210	210	4. An amino acid; 19
211	211	5. A dietary substance for use by humans to supplement the diet by increasing the total 20
212	212	dietary intake; or 21
213	213	6. A concentrate, metabolite, constituent, extract, or combination of any ingredient 22
214	214	described above; and 23
215	215	(B) Is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, or 24
216	216	if not intended for ingestion in such a form, is not represented as conventional food and is not 25
217	217	represented for use as a sole item of a meal or of the diet; and 26
218	218	(C) Is required to be labeled as a dietary supplement, identifiable by the “supplemental 27
219	219	facts” box found on the label and as required pursuant to 21 C.F.R. § 101.36. 28
220	220	(m) “Food sold through vending machines” means food dispensed from a machine or other 29
221	221	mechanical device that accepts payment. 30
222	222	(n) “Hotel” means every building or other structure kept, used, maintained, advertised as, 31
223	223	or held out to the public to be a place where living quarters are supplied for pay to transient or 32
224	224	permanent guests and tenants and includes a motel. 33
225	225	(i) “Living quarters” means sleeping rooms, sleeping or housekeeping accommodations, or 34
226	226
227	227
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229	229	any other room or accommodation in any part of the hotel, rooming house, or tourist camp that is 1
230	230	available for or rented out for hire in the lodging of guests. 2
231	231	(ii) “Rooming house” means every house, boat, vehicle, motor court, or other structure 3
232	232	kept, used, maintained, advertised, or held out to the public to be a place where living quarters are 4
233	233	supplied for pay to transient or permanent guests or tenants, whether in one or adjoining buildings. 5
234	234	(iii) “Tourist camp” means a place where tents or tent houses, or camp cottages, or cabins 6
235	235	or other structures are located and offered to the public or any segment thereof for human 7
236	236	habitation. 8
237	237	(o) “Lease or rental” means any transfer of possession or control of tangible personal 9
238	238	property for a fixed or indeterminate term for consideration. A lease or rental may include future 10
239	239	options to purchase or extend. Lease or rental does not include: 11
240	240	(i) A transfer of possession or control of property under a security agreement or deferred 12
241	241	payment plan that requires the transfer of title upon completion of the required payments; 13
242	242	(ii) A transfer of possession or control of property under an agreement that requires the 14
243	243	transfer of title upon completion of required payments and payment of an option price does not 15
244	244	exceed the greater of one hundred dollars ($100) or one percent of the total required payments; or 16
245	245	(iii) Providing tangible personal property along with an operator for a fixed or 17
246	246	indeterminate period of time. A condition of this exclusion is that the operator is necessary for the 18
247	247	equipment to perform as designed. For the purpose of this subsection, an operator must do more 19
248	248	than maintain, inspect, or set-up the tangible personal property. 20
249	249	(iv) Lease or rental does include agreements covering motor vehicles and trailers where the 21
250	250	amount of consideration may be increased or decreased by reference to the amount realized upon 22
251	251	sale or disposition of the property as defined in 26 U.S.C. § 7701(h)(1). 23
252	252	(v) This definition shall be used for sales and use tax purposes regardless if a transaction 24
253	253	is characterized as a lease or rental under generally accepted accounting principles, the Internal 25
254	254	Revenue Code, the Uniform Commercial Code, or other provisions of federal, state, or local law. 26
255	255	(vi) This definition will be applied only prospectively from the date of adoption and will 27
256	256	have no retroactive impact on existing leases or rentals. This definition shall neither impact any 28
257	257	existing sale-leaseback exemption or exclusions that a state may have, nor preclude a state from 29
258	258	adopting a sale-leaseback exemption or exclusion after the effective date of the agreement. 30
259	259	(p) “Mobility enhancing equipment” means equipment, including repair and replacement 31
260	260	parts to same, that: 32
261	261	(i) Is primarily and customarily used to provide or increase the ability to move from one 33
262	262	place to another and that is appropriate for use either in a home or a motor vehicle; and 34
263	263
264	264
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266	266	(ii) Is not generally used by persons with normal mobility; and 1
267	267	(iii) Does not include any motor vehicle or equipment on a motor vehicle normally 2
268	268	provided by a motor vehicle manufacturer. 3
269	269	Mobility enhancing equipment does not include durable medical equipment. 4
270	270	(q) “Model 1 Seller” means a seller that has selected a CSP as its agent to perform all the 5
271	271	seller’s sales and use tax functions, other than the seller’s obligation to remit tax on its own 6
272	272	purchases. 7
273	273	(r) “Model 2 Seller” means a seller that has selected a CAS to perform part of its sales and 8
274	274	use tax functions, but retains responsibility for remitting the tax. 9
275	275	(s) “Model 3 Seller” means a seller that has sales in at least five member states, has total 10
276	276	annual sales revenue of at least five hundred million dollars ($500,000,000), has a proprietary 11
277	277	system that calculates the amount of tax due each jurisdiction, and has entered into a performance 12
278	278	agreement with the member states that establishes a tax performance standard for the seller. As 13
279	279	used in this definition, a seller includes an affiliated group of sellers using the same proprietary 14
280	280	system. 15
281	281	(t) “Prosthetic device” means a replacement, corrective, or supportive device including 16
282	282	repair and replacement parts for same worn on or in the body to: 17
283	283	(i) Artificially replace a missing portion of the body; 18
284	284	(ii) Prevent or correct physical deformity or malfunction; or 19
285	285	(iii) Support a weak or deformed portion of the body. 20
286	286	(u) “Purchaser” means a person to whom a sale of personal property is made or to whom a 21
287	287	service is furnished. 22
288	288	(v) “Purchase price” applies to the measure subject to use tax and has the same meaning as 23
289	289	sales price. 24
290	290	(w) “Seller” means a person making sales, leases, or rentals of personal property or 25
291	291	services. 26
292	292	(x) Specified digital products.(i) “Specified digital products” means electronically 27
293	293	transferred: 28
294	294	(A) “Digital audio-visual works” which means a series of related images which, when 29
295	295	shown in succession, impart an impression of motion, together with accompanying sounds, if any; 30
296	296	(B) “Digital audio works” which means works that result from the fixation of a series of 31
297	297	musical, spoken, or other sounds, including ringtones; and/or 32
298	298	(C) “Digital books” which means works that are generally recognized in the ordinary and 33
299	299	usual sense as “books.” 34
300	300
301	301
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303	303	(ii) For purposes of the definition of “digital audio works,” “ringtones” means digitized 1
304	304	sound files that are downloaded onto a device and that may be used to alert the customer with 2
305	305	respect to a communication. 3
306	306	(iii) For purposes of the definition of “specified digital products,” “transferred 4
307	307	electronically” means obtained by the purchaser by means other than tangible storage media. 5
308	308	(iv) For the purposes of “specified digital products,” “end user” includes any person other 6
309	309	than a person who receives by contract a product “transferred electronically” for further broadcast, 7
310	310	rebroadcast, transmission, retransmission, licensing, relicensing, distribution, redistribution, or 8
311	311	exhibition of the product, in whole or in part, to another person or persons. A person who purchases 9
312	312	products “transferred electronically” or the code for “specified digital products” for the purpose of 10
313	313	giving away such products or code shall not be considered to have engaged in the distribution or 11
314	314	redistribution of such products or code and shall be treated as an end user. 12
315	315	(v) For the purposes of “specified digital products,” “permanent” means perpetual or for 13
316	316	an indefinite or unspecified length of time. 14
317	317	(y) “State” means any state of the United States and the District of Columbia. 15
318	318	(z) “Telecommunications” tax base/exemption terms. 16
319	319	(i) Telecommunication terms shall be defined as follows: 17
320	320	(A) “Ancillary services” means services that are associated with or incidental to the 18
321	321	provision of “telecommunications services,” including, but not limited to, “detailed 19
322	322	telecommunications billing,” “directory assistance,” “vertical service,” and “voice mail services.” 20
323	323	(B) “Conference bridging service” means an “ancillary service” that links two (2) or more 21
324	324	participants of an audio or video conference call and may include the provision of a telephone 22
325	325	number. “Conference bridging service” does not include the “telecommunications services” used 23
326	326	to reach the conference bridge. 24
327	327	(C) “Detailed telecommunications billing service” means an “ancillary service” of 25
328	328	separately stating information pertaining to individual calls on a customer’s billing statement. 26
329	329	(D) “Directory assistance” means an “ancillary service” of providing telephone number 27
330	330	information, and/or address information. 28
331	331	(E) “Vertical service” means an “ancillary service” that is offered in connection with one 29
332	332	or more “telecommunications services,” which offers advanced calling features that allow 30
333	333	customers to identify callers and to manage multiple calls and call connections, including 31
334	334	“conference bridging services.” 32
335	335	(F) “Voice mail service” means an “ancillary service” that enables the customer to store, 33
336	336	send, or receive recorded messages. “Voice mail service” does not include any “vertical services” 34
337	337
338	338
339	339	LC001049 - Page 10 of 30
340	340	that the customer may be required to have in order to utilize the “voice mail service.” 1
341	341	(G) “Telecommunications service” means the electronic transmission, conveyance, or 2
342	342	routing of voice, data, audio, video, or any other information or signals to a point, or between or 3
343	343	among points. The term “telecommunications service” includes such transmission, conveyance, or 4
344	344	routing in which computer processing applications are used to act on the form, code, or protocol of 5
345	345	the content for purposes of transmission, conveyance, or routing without regard to whether such 6
346	346	service is referred to as voice over internet protocol services or is classified by the Federal 7
347	347	Communications Commission as enhanced or value added. “Telecommunications service” does 8
348	348	not include: 9
349	349	(1) Data processing and information services that allow data to be generated, acquired, 10
350	350	stored, processed, or retrieved and delivered by an electronic transmission to a purchaser where 11
351	351	such purchaser’s primary purpose for the underlying transaction is the processed data or 12
352	352	information; 13
353	353	(2) Installation or maintenance of wiring or equipment on a customer’s premises; 14
354	354	(3) Tangible personal property; 15
355	355	(4) Advertising, including, but not limited to, directory advertising; 16
356	356	(5) Billing and collection services provided to third parties; 17
357	357	(6) Internet access service; 18
358	358	(7) Radio and television audio and video programming services, regardless of the medium, 19
359	359	including the furnishing of transmission, conveyance, and routing of such services by the 20
360	360	programming service provider. Radio and television audio and video programming services shall 21
361	361	include, but not be limited to, cable service as defined in 47 U.S.C. § 522(6) and audio and video 22
362	362	programming services delivered by commercial mobile radio service providers as defined in 47 23
363	363	C.F.R. § 20.3; 24
364	364	(8) “Ancillary services”; or 25
365	365	(9) Digital products “delivered electronically,” including, but not limited to: software, 26
366	366	music, video, reading materials, or ring tones. 27
367	367	(H) “800 service” means a “telecommunications service” that allows a caller to dial a toll-28
368	368	free number without incurring a charge for the call. The service is typically marketed under the 29
369	369	name “800,” “855,” “866,” “877,” and “888” toll-free calling, and any subsequent numbers 30
370	370	designated by the Federal Communications Commission. 31
371	371	(I) “900 service” means an inbound toll “telecommunications service” purchased by a 32
372	372	subscriber that allows the subscriber’s customers to call in to the subscriber’s prerecorded 33
373	373	announcement or live service. “900 service” does not include the charge for: collection services 34
374	374
375	375
376	376	LC001049 - Page 11 of 30
377	377	provided by the seller of the “telecommunications services” to the subscriber, or service or product 1
378	378	sold by the subscriber to the subscriber’s customer. The service is typically marketed under the 2
379	379	name “900 service,” and any subsequent numbers designated by the Federal Communications 3
380	380	Commission. 4
381	381	(J) “Fixed wireless service” means a “telecommunications service” that provides radio 5
382	382	communication between fixed points. 6
383	383	(K) “Mobile wireless service” means a “telecommunications service” that is transmitted, 7
384	384	conveyed, or routed regardless of the technology used, whereby the origination and/or termination 8
385	385	points of the transmission, conveyance, or routing are not fixed, including, by way of example only, 9
386	386	“telecommunications services” that are provided by a commercial mobile radio service provider. 10
387	387	(L) “Paging service” means a “telecommunications service” that provides transmission of 11
388	388	coded radio signals for the purpose of activating specific pagers; such transmissions may include 12
389	389	messages and/or sounds. 13
390	390	(M) “Prepaid calling service” means the right to access exclusively “telecommunications 14
391	391	services,” which must be paid for in advance and that enables the origination of calls using an 15
392	392	access number or authorization code, whether manually or electronically dialed, and that is sold in 16
393	393	predetermined units or dollars of which the number declines with use in a known amount. 17
394	394	(N) “Prepaid wireless calling service” means a “telecommunications service” that provides 18
395	395	the right to utilize “mobile wireless service,” as well as other non-telecommunications services, 19
396	396	including the download of digital products “delivered electronically,” content and “ancillary 20
397	397	services” which must be paid for in advance that is sold in predetermined units of dollars of which 21
398	398	the number declines with use in a known amount. 22
399	399	(O) “Private communications service” means a telecommunications service that entitles 23
400	400	the customer to exclusive or priority use of a communications channel or group of channels between 24
401	401	or among termination points, regardless of the manner in which such channel or channels are 25
402	402	connected, and includes switching capacity, extension lines, stations, and any other associated 26
403	403	services that are provided in connection with the use of such channel or channels. 27
404	404	(P) “Value-added non-voice data service” means a service that otherwise meets the 28
405	405	definition of “telecommunications services” in which computer processing applications are used to 29
406	406	act on the form, content, code, or protocol of the information or data primarily for a purpose other 30
407	407	than transmission, conveyance, or routing. 31
408	408	(ii) “Modifiers of Sales Tax Base/Exemption Terms” — the following terms can be used 32
409	409	to further delineate the type of “telecommunications service” to be taxed or exempted. The terms 33
410	410	would be used with the broader terms and subcategories delineated above. 34
411	411
412	412
413	413	LC001049 - Page 12 of 30
414	414	(A) “Coin-operated telephone service” means a “telecommunications service” paid for by 1
415	415	inserting money into a telephone accepting direct deposits of money to operate. 2
416	416	(B) “International” means a “telecommunications service” that originates or terminates in 3
417	417	the United States and terminates or originates outside the United States, respectively. United States 4
418	418	includes the District of Columbia or a U.S. territory or possession. 5
419	419	(C) “Interstate” means a “telecommunications service” that originates in one United States 6
420	420	state, or a United States territory or possession, and terminates in a different United States state or 7
421	421	a United States territory or possession. 8
422	422	(D) “Intrastate” means a “telecommunications service” that originates in one United States 9
423	423	state or a United States territory or possession, and terminates in the same United States state or a 10
424	424	United States territory or possession. 11
425	425	(E) “Pay telephone service” means a “telecommunications service” provided through any 12
426	426	pay telephone. 13
427	427	(F) “Residential telecommunications service” means a “telecommunications service” or 14
428	428	“ancillary services” provided to an individual for personal use at a residential address, including an 15
429	429	individual dwelling unit such as an apartment. In the case of institutions where individuals reside, 16
430	430	such as schools or nursing homes, “telecommunications service” is considered residential if it is 17
431	431	provided to and paid for by an individual resident rather than the institution. 18
432	432	The terms “ancillary services” and “telecommunications service” are defined as a broad 19
433	433	range of services. The terms “ancillary services” and “telecommunications service” are broader 20
434	434	than the sum of the subcategories. Definitions of subcategories of “ancillary services” and 21
435	435	“telecommunications service” can be used by a member state alone or in combination with other 22
436	436	subcategories to define a narrower tax base than the definitions of “ancillary services” and 23
437	437	“telecommunications service” would imply. The subcategories can also be used by a member state 24
438	438	to provide exemptions for certain subcategories of the more broadly defined terms. 25
439	439	A member state that specifically imposes tax on, or exempts from tax, local telephone or 26
440	440	local telecommunications service may define “local service” in any manner in accordance with § 27
441	441	44-18.1-28, except as limited by other sections of this Agreement. 28
442	442	(aa) “Tobacco” means cigarettes, cigars, chewing, or pipe tobacco, or any other item that 29
443	443	contains tobacco. 30
444	444	SECTION 2. Section 44-18-30 of the General Laws in Chapter 44-18 entitled "Sales and 31
445	445	Use Taxes — Liability and Computation" is hereby amended to read as follows: 32
446	446	44-18-30. Gross receipts exempt from sales and use taxes. 33
447	447	There are exempted from the taxes imposed by this chapter the following gross receipts: 34
448	448
449	449
450	450	LC001049 - Page 13 of 30
451	451	(1) Sales and uses beyond constitutional power of state. From the sale and from the storage, 1
452	452	use, or other consumption in this state of tangible personal property the gross receipts from the sale 2
453	453	of which, or the storage, use, or other consumption of which, this state is prohibited from taxing 3
454	454	under the Constitution of the United States or under the constitution of this state. 4
455	455	(2) Newspapers. 5
456	456	(i) From the sale and from the storage, use, or other consumption in this state of any 6
457	457	newspaper. 7
458	458	(ii) “Newspaper” means an unbound publication printed on newsprint that contains news, 8
459	459	editorial comment, opinions, features, advertising matter, and other matters of public interest. 9
460	460	(iii) “Newspaper” does not include a magazine, handbill, circular, flyer, sales catalog, or 10
461	461	similar item unless the item is printed for, and distributed as, a part of a newspaper. 11
462	462	(3) School meals. From the sale and from the storage, use, or other consumption in this 12
463	463	state of meals served by public, private, or parochial schools, school districts, colleges, universities, 13
464	464	student organizations, and parent-teacher associations to the students or teachers of a school, 14
465	465	college, or university whether the meals are served by the educational institutions or by a food 15
466	466	service or management entity under contract to the educational institutions. 16
467	467	(4) Containers. 17
468	468	(i) From the sale and from the storage, use, or other consumption in this state of: 18
469	469	(A) Non-returnable containers, including boxes, paper bags, and wrapping materials that 19
470	470	are biodegradable and all bags and wrapping materials utilized in the medical and healing arts, 20
471	471	when sold without the contents to persons who place the contents in the container and sell the 21
472	472	contents with the container. 22
473	473	(B) Containers when sold with the contents if the sale price of the contents is not required 23
474	474	to be included in the measure of the taxes imposed by this chapter. 24
475	475	(C) Returnable containers when sold with the contents in connection with a retail sale of 25
476	476	the contents or when resold for refilling. 26
477	477	(D) Keg and barrel containers, whether returnable or not, when sold to alcoholic beverage 27
478	478	producers who place the alcoholic beverages in the containers. 28
479	479	(ii) As used in this subdivision, the term “returnable containers” means containers of a kind 29
480	480	customarily returned by the buyer of the contents for reuse. All other containers are “non-returnable 30
481	481	containers.” 31
482	482	(5)(i) Charitable, educational, and religious organizations. From the sale to, as in defined 32
483	483	in this section, and from the storage, use, and other consumption in this state, or any other state of 33
484	484	the United States of America, of tangible personal property by hospitals not operated for a profit; 34
485	485
486	486
487	487	LC001049 - Page 14 of 30
488	488	“educational institutions” as defined in subdivision (18) not operated for a profit; churches, 1
489	489	orphanages, and other institutions or organizations operated exclusively for religious or charitable 2
490	490	purposes; interest-free loan associations not operated for profit; nonprofit, organized sporting 3
491	491	leagues and associations and bands for boys and girls under the age of nineteen (19) years; the 4
492	492	following vocational student organizations that are state chapters of national vocational student 5
493	493	organizations: Distributive Education Clubs of America (DECA); Future Business Leaders of 6
494	494	America, Phi Beta Lambda (FBLA/PBL); Future Farmers of America (FFA); Future Homemakers 7
495	495	of America/Home Economics Related Occupations (FHA/HERD); Vocational Industrial Clubs of 8
496	496	America (VICA); organized nonprofit golden age and senior citizens clubs for men and women; 9
497	497	and parent-teacher associations; and from the sale, storage, use, and other consumption in this state, 10
498	498	of and by the Industrial Foundation of Burrillville, a Rhode Island domestic nonprofit corporation. 11
499	499	(ii) In the case of contracts entered into with the federal government, its agencies, or 12
500	500	instrumentalities, this state, or any other state of the United States of America, its agencies, any 13
501	501	city, town, district, or other political subdivision of the states; hospitals not operated for profit; 14
502	502	educational institutions not operated for profit; churches, orphanages, and other institutions or 15
503	503	organizations operated exclusively for religious or charitable purposes, the contractor may purchase 16
504	504	such materials and supplies (materials and/or supplies are defined as those that are essential to the 17
505	505	project) that are to be utilized in the construction of the projects being performed under the contracts 18
506	506	without payment of the tax. 19
507	507	(iii) The contractor shall not charge any sales or use tax to any exempt agency, institution, 20
508	508	or organization but shall in that instance provide his or her suppliers with certificates in the form 21
509	509	as determined by the division of taxation showing the reason for exemption and the contractor’s 22
510	510	records must substantiate the claim for exemption by showing the disposition of all property so 23
511	511	purchased. If any property is then used for a nonexempt purpose, the contractor must pay the tax 24
512	512	on the property used. 25
513	513	(6) Gasoline. From the sale and from the storage, use, or other consumption in this state 26
514	514	of: (i) Gasoline and other products taxed under chapter 36 of title 31 and (ii) Fuels used for the 27
515	515	propulsion of airplanes. 28
516	516	(7) Purchase for manufacturing purposes. 29
517	517	(i) From the sale and from the storage, use, or other consumption in this state of computer 30
518	518	software, tangible personal property, electricity, natural gas, artificial gas, steam, refrigeration, and 31
519	519	water, when the property or service is purchased for the purpose of being manufactured into a 32
520	520	finished product for resale and becomes an ingredient, component, or integral part of the 33
521	521	manufactured, compounded, processed, assembled, or prepared product, or if the property or 34
522	522
523	523
524	524	LC001049 - Page 15 of 30
525	525	service is consumed in the process of manufacturing for resale computer software, tangible personal 1
526	526	property, electricity, natural gas, artificial gas, steam, refrigeration, or water. 2
527	527	(ii) “Consumed” means destroyed, used up, or worn out to the degree or extent that the 3
528	528	property cannot be repaired, reconditioned, or rendered fit for further manufacturing use. 4
529	529	(iii) “Consumed” includes mere obsolescence. 5
530	530	(iv) “Manufacturing” means and includes: manufacturing, compounding, processing, 6
531	531	assembling, preparing, or producing. 7
532	532	(v) “Process of manufacturing” means and includes all production operations performed in 8
533	533	the producing or processing room, shop, or plant, insofar as the operations are a part of and 9
534	534	connected with the manufacturing for resale of tangible personal property, electricity, natural gas, 10
535	535	artificial gas, steam, refrigeration, or water and all production operations performed insofar as the 11
536	536	operations are a part of and connected with the manufacturing for resale of computer software. 12
537	537	(vi) “Process of manufacturing” does not mean or include administration operations such 13
538	538	as general office operations, accounting, collection, or sales promotion, nor does it mean or include 14
539	539	distribution operations that occur subsequent to production operations, such as handling, storing, 15
540	540	selling, and transporting the manufactured products, even though the administration and 16
541	541	distribution operations are performed by, or in connection with, a manufacturing business. 17
542	542	(8) State and political subdivisions. From the sale to, and from the storage, use, or other 18
543	543	consumption by, this state, any city, town, district, or other political subdivision of this state. Every 19
544	544	redevelopment agency created pursuant to chapter 31 of title 45 is deemed to be a subdivision of 20
545	545	the municipality where it is located. 21
546	546	(9) Food and food ingredients. From the sale and storage, use, or other consumption in this 22
547	547	state of food and food ingredients as defined in § 44-18-7.1(l). 23
548	548	For the purposes of this exemption “food and food ingredients” shall not include candy, 24
549	549	soft drinks, dietary supplements, alcoholic beverages, tobacco, food sold through vending 25
550	550	machines, or prepared food, as those terms are defined in § 44-18-7.1, unless the prepared food is: 26
551	551	(i) Sold by a seller whose primary NAICS classification is manufacturing in sector 311, 27
552	552	except sub-sector 3118 (bakeries); 28
553	553	(ii) Sold in an unheated state by weight or volume as a single item; 29
554	554	(iii) Bakery items, including: bread, rolls, buns, biscuits, bagels, croissants, pastries, 30
555	555	donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, tortillas; and 31
556	556	is not sold with utensils provided by the seller, including: plates, knives, forks, spoons, 32
557	557	glasses, cups, napkins, or straws. 33
558	558	(10) Medicines, drugs, and durable medical equipment. From the sale and from the storage, 34
559	559
560	560
561	561	LC001049 - Page 16 of 30
562	562	use, or other consumption in this state, of: 1
563	563	(i) “Drugs” as defined in § 44-18-7.1(h)(i), sold on prescriptions, medical oxygen, and 2
564	564	insulin whether or not sold on prescription. For purposes of this exemption drugs shall not include 3
565	565	over-the-counter drugs and grooming and hygiene products as defined in § 44-18-7.1(h)(iii). 4
566	566	(ii) Durable medical equipment as defined in § 44-18-7.1(k) for home use only, including, 5
567	567	but not limited to: syringe infusers, ambulatory drug delivery pumps, hospital beds, convalescent 6
568	568	chairs, and chair lifts. Supplies used in connection with syringe infusers and ambulatory drug 7
569	569	delivery pumps that are sold on prescription to individuals to be used by them to dispense or 8
570	570	administer prescription drugs, and related ancillary dressings and supplies used to dispense or 9
571	571	administer prescription drugs, shall also be exempt from tax. 10
572	572	(11) Prosthetic devices and mobility enhancing equipment. From the sale and from the 11
573	573	storage, use, or other consumption in this state, of prosthetic devices as defined in § 44-18-7.1(t), 12
574	574	sold on prescription, including, but not limited to: artificial limbs, dentures, spectacles, eyeglasses, 13
575	575	and artificial eyes; artificial hearing devices and hearing aids, whether or not sold on prescription; 14
576	576	and mobility enhancing equipment as defined in § 44-18-7.1(p), including wheelchairs, crutches, 15
577	577	and canes. 16
578	578	(12) Coffins, caskets, urns, shrouds and burial garments. From the sale and from the 17
579	579	storage, use, or other consumption in this state of coffins, caskets, burial containers, urns, urn liners, 18
580	580	urn vaults, grave liners, grave vaults, burial tent setups, prayer cards, shrouds, and other burial 19
581	581	garments that are ordinarily sold by a funeral director as part of the business of funeral directing. 20
582	582	(13) Motor vehicles sold to nonresidents. 21
583	583	(i) From the sale, subsequent to June 30, 1958, of a motor vehicle to a bona fide nonresident 22
584	584	of this state who does not register the motor vehicle in this state, whether the sale or delivery of the 23
585	585	motor vehicle is made in this state or at the place of residence of the nonresident. A motor vehicle 24
586	586	sold to a bona fide nonresident whose state of residence does not allow a like exemption to its 25
587	587	nonresidents is not exempt from the tax imposed under § 44-18-20. In that event, the bona fide 26
588	588	nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate that would be imposed 27
589	589	in his or her state of residence not to exceed the rate that would have been imposed under § 44-18-28
590	590	20. Notwithstanding any other provisions of law, a licensed motor vehicle dealer shall add and 29
591	591	collect the tax required under this subdivision and remit the tax to the tax administrator under the 30
592	592	provisions of chapters 18 and 19 of this title. When a Rhode Island licensed, motor vehicle dealer 31
593	593	is required to add and collect the sales and use tax on the sale of a motor vehicle to a bona fide 32
594	594	nonresident as provided in this section, the dealer in computing the tax takes into consideration the 33
595	595	law of the state of the nonresident as it relates to the trade-in of motor vehicles. 34
596	596
597	597
598	598	LC001049 - Page 17 of 30
599	599	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 1
600	600	require any licensed motor vehicle dealer to keep records of sales to bona fide nonresidents as the 2
601	601	tax administrator deems reasonably necessary to substantiate the exemption provided in this 3
602	602	subdivision, including the affidavit of a licensed motor vehicle dealer that the purchaser of the 4
603	603	motor vehicle was the holder of, and had in his or her possession a valid out-of-state motor vehicle 5
604	604	registration or a valid out-of-state driver’s license. 6
605	605	(iii) Any nonresident who registers a motor vehicle in this state within ninety (90) days of 7
606	606	the date of its sale to him or her is deemed to have purchased the motor vehicle for use, storage, or 8
607	607	other consumption in this state, and is subject to, and liable for, the use tax imposed under the 9
608	608	provisions of § 44-18-20. 10
609	609	(14) Sales in public buildings by blind people. From the sale and from the storage, use, or 11
610	610	other consumption in all public buildings in this state of all products or wares by any person 12
611	611	licensed under § 40-9-11.1. 13
612	612	(15) Air and water pollution control facilities. From the sale, storage, use, or other 14
613	613	consumption in this state of tangible personal property or supplies acquired for incorporation into 15
614	614	or used and consumed in the operation of a facility, the primary purpose of which is to aid in the 16
615	615	control of the pollution or contamination of the waters or air of the state, as defined in chapter 12 17
616	616	of title 46 and chapter 23 of title 23, respectively, and that has been certified as approved for that 18
617	617	purpose by the director of environmental management. The director of environmental management 19
618	618	may certify to a portion of the tangible personal property or supplies acquired for incorporation 20
619	619	into those facilities or used and consumed in the operation of those facilities to the extent that that 21
620	620	portion has as its primary purpose the control of the pollution or contamination of the waters or air 22
621	621	of this state. As used in this subdivision, “facility” means any land, facility, device, building, 23
622	622	machinery, or equipment. 24
623	623	(16) Camps. From the rental charged for living quarters, or sleeping, or housekeeping 25
624	624	accommodations at camps or retreat houses operated by religious, charitable, educational, or other 26
625	625	organizations and associations mentioned in subsection (5), or by privately owned and operated 27
626	626	summer camps for children. 28
627	627	(17) Certain institutions. From the rental charged for living or sleeping quarters in an 29
628	628	institution licensed by the state for the hospitalization, custodial, or nursing care of human beings. 30
629	629	(18) Educational institutions. From the rental charged by any educational institution for 31
630	630	living quarters, or sleeping, or housekeeping accommodations or other rooms or accommodations 32
631	631	to any student or teacher necessitated by attendance at an educational institution. “Educational 33
632	632	institution” as used in this section means an institution of learning not operated for profit that is 34
633	633
634	634
635	635	LC001049 - Page 18 of 30
636	636	empowered to confer diplomas, educational, literary, or academic degrees; that has a regular 1
637	637	faculty, curriculum, and organized body of pupils or students in attendance throughout the usual 2
638	638	school year; that keeps and furnishes to students and others records required and accepted for 3
639	639	entrance to schools of secondary, collegiate, or graduate rank; and no part of the net earnings of 4
640	640	which inures to the benefit of any individual. 5
641	641	(19) Motor vehicle and adaptive equipment for persons with disabilities. 6
642	642	(i) From the sale of: (A) Special adaptations; (B) The component parts of the special 7
643	643	adaptations; or (C) A specially adapted motor vehicle; provided that the owner furnishes to the tax 8
644	644	administrator an affidavit of a licensed physician to the effect that the specially adapted motor 9
645	645	vehicle is necessary to transport a family member with a disability or where the vehicle has been 10
646	646	specially adapted to meet the specific needs of the person with a disability. This exemption applies 11
647	647	to not more than one motor vehicle owned and registered for personal, noncommercial use. 12
648	648	(ii) For the purpose of this subsection the term “special adaptations” includes, but is not 13
649	649	limited to: wheelchair lifts, wheelchair carriers, wheelchair ramps, wheelchair securements, hand 14
650	650	controls, steering devices, extensions, relocations, and crossovers of operator controls, power-15
651	651	assisted controls, raised tops or dropped floors, raised entry doors, or alternative signaling devices 16
652	652	to auditory signals. 17
653	653	(iii) From the sale of: (a) Special adaptations, (b) The component parts of the special 18
654	654	adaptations, for a “wheelchair accessible taxicab” as defined in § 39-14-1, and/or a “wheelchair 19
655	655	accessible public motor vehicle” as defined in § 39-14.1-1. 20
656	656	(iv) For the purpose of this subdivision the exemption for a “specially adapted motor 21
657	657	vehicle” means a use tax credit not to exceed the amount of use tax that would otherwise be due on 22
658	658	the motor vehicle, exclusive of any adaptations. The use tax credit is equal to the cost of the special 23
659	659	adaptations, including installation. 24
660	660	(20) Heating fuels. From the sale and from the storage, use, or other consumption in this 25
661	661	state of every type of heating fuel. 26
662	662	(21) Electricity and gas. From the sale and from the storage, use, or other consumption in 27
663	663	this state of electricity and gas. 28
664	664	(22) Manufacturing machinery and equipment. 29
665	665	(i) From the sale and from the storage, use, or other consumption in this state of tools, dies, 30
666	666	molds, machinery, equipment (including replacement parts), and related items to the extent used in 31
667	667	an industrial plant in connection with the actual manufacture, conversion, or processing of tangible 32
668	668	personal property, or to the extent used in connection with the actual manufacture, conversion, or 33
669	669	processing of computer software as that term is utilized in industry numbers 7371, 7372, and 7373 34
670	670
671	671
672	672	LC001049 - Page 19 of 30
673	673	in the standard industrial classification manual prepared by the Technical Committee on Industrial 1
674	674	Classification, Office of Statistical Standards, Executive Office of the President, United States 2
675	675	Bureau of the Budget, as revised from time to time, to be sold, or that machinery and equipment 3
676	676	used in the furnishing of power to an industrial manufacturing plant. For the purposes of this 4
677	677	subdivision, “industrial plant” means a factory at a fixed location primarily engaged in the 5
678	678	manufacture, conversion, or processing of tangible personal property to be sold in the regular 6
679	679	course of business; 7
680	680	(ii) Machinery and equipment and related items are not deemed to be used in connection 8
681	681	with the actual manufacture, conversion, or processing of tangible personal property, or in 9
682	682	connection with the actual manufacture, conversion, or processing of computer software as that 10
683	683	term is utilized in industry numbers 7371, 7372, and 7373 in the standard industrial classification 11
684	684	manual prepared by the Technical Committee on Industrial Classification, Office of Statistical 12
685	685	Standards, Executive Office of the President, United States Bureau of the Budget, as revised from 13
686	686	time to time, to be sold to the extent the property is used in administration or distribution operations; 14
687	687	(iii) Machinery and equipment and related items used in connection with the actual 15
688	688	manufacture, conversion, or processing of any computer software or any tangible personal property 16
689	689	that is not to be sold and that would be exempt under subdivision (7) or this subdivision if purchased 17
690	690	from a vendor or machinery and equipment and related items used during any manufacturing, 18
691	691	converting, or processing function is exempt under this subdivision even if that operation, function, 19
692	692	or purpose is not an integral or essential part of a continuous production flow or manufacturing 20
693	693	process; 21
694	694	(iv) Where a portion of a group of portable or mobile machinery is used in connection with 22
695	695	the actual manufacture, conversion, or processing of computer software or tangible personal 23
696	696	property to be sold, as previously defined, that portion, if otherwise qualifying, is exempt under 24
697	697	this subdivision even though the machinery in that group is used interchangeably and not otherwise 25
698	698	identifiable as to use. 26
699	699	(23) Trade-in value of motor vehicles. From the sale and from the storage, use, or other 27
700	700	consumption in this state of so much of the purchase price paid for a new or used automobile as is 28
701	701	allocated for a trade-in allowance on the automobile of the buyer given in trade to the seller, or of 29
702	702	the proceeds applicable only to the automobile as are received from the manufacturer of 30
703	703	automobiles for the repurchase of the automobile whether the repurchase was voluntary or not 31
704	704	towards the purchase of a new or used automobile by the buyer. For the purpose of this subdivision, 32
705	705	the word “automobile” means a private passenger automobile not used for hire and does not refer 33
706	706	to any other type of motor vehicle. 34
707	707
708	708
709	709	LC001049 - Page 20 of 30
710	710	(24) Precious metal bullion. 1
711	711	(i) From the sale and from the storage, use, or other consumption in this state of precious 2
712	712	metal bullion, substantially equivalent to a transaction in securities or commodities. 3
713	713	(ii) For purposes of this subdivision, “precious metal bullion” means any elementary 4
714	714	precious metal that has been put through a process of smelting or refining, including, but not limited 5
715	715	to: gold, silver, platinum, rhodium, and chromium, and that is in a state or condition that its value 6
716	716	depends upon its content and not upon its form. 7
717	717	(iii) The term does not include fabricated precious metal that has been processed or 8
718	718	manufactured for some one or more specific and customary industrial, professional, or artistic uses. 9
719	719	(25) Commercial vessels. From sales made to a commercial ship, barge, or other vessel of 10
720	720	fifty (50) tons burden or over, primarily engaged in interstate or foreign commerce, and from the 11
721	721	repair, alteration, or conversion of the vessels, and from the sale of property purchased for the use 12
722	722	of the vessels including provisions, supplies, and material for the maintenance and/or repair of the 13
723	723	vessels. 14
724	724	(26) Commercial fishing vessels. From the sale and from the storage, use, or other 15
725	725	consumption in this state of vessels and other watercraft that are in excess of five (5) net tons and 16
726	726	that are used exclusively for “commercial fishing,” as defined in this subdivision, and from the 17
727	727	repair, alteration, or conversion of those vessels and other watercraft, and from the sale of property 18
728	728	purchased for the use of those vessels and other watercraft including provisions, supplies, and 19
729	729	material for the maintenance and/or repair of the vessels and other watercraft and the boats nets, 20
730	730	cables, tackle, and other fishing equipment appurtenant to or used in connection with the 21
731	731	commercial fishing of the vessels and other watercraft. “Commercial fishing” means taking or 22
732	732	attempting to take any fish, shellfish, crustacea, or bait species with the intent of disposing of it for 23
733	733	profit or by sale, barter, trade, or in commercial channels. The term does not include subsistence 24
734	734	fishing, i.e., the taking for personal use and not for sale or barter; or sport fishing; but shall include 25
735	735	vessels and other watercraft with a Rhode Island party and charter boat license issued by the 26
736	736	department of environmental management pursuant to § 20-2-27.1 that meet the following criteria: 27
737	737	(i) The operator must have a current United States Coast Guard (U.S.C.G.) license to carry 28
738	738	passengers for hire; (ii) U.S.C.G. vessel documentation in the coast wide fishery trade; (iii) 29
739	739	U.S.C.G. vessel documentation as to proof of Rhode Island home port status or a Rhode Island boat 30
740	740	registration to prove Rhode Island home port status; and (iv) The vessel must be used as a 31
741	741	commercial passenger carrying fishing vessel to carry passengers for fishing. The vessel must be 32
742	742	able to demonstrate that at least fifty percent (50%) of its annual gross income derives from charters 33
743	743	or provides documentation of a minimum of one hundred (100) charter trips annually; and (v) The 34
744	744
745	745
746	746	LC001049 - Page 21 of 30
747	747	vessel must have a valid Rhode Island party and charter boat license. The tax administrator shall 1
748	748	implement the provisions of this subdivision by promulgating rules and regulations relating thereto. 2
749	749	(27) Clothing and footwear. From the sales of articles of clothing, including footwear, 3
750	750	intended to be worn or carried on or about the human body for sales prior to October 1, 2012. 4
751	751	Effective October 1, 2012, the exemption will apply to the sales of articles of clothing, including 5
752	752	footwear, intended to be worn or carried on or about the human body up to two hundred and fifty 6
753	753	dollars ($250) of the sales price per item. For the purposes of this section, “clothing or footwear” 7
754	754	does not include clothing accessories or equipment or special clothing or footwear primarily 8
755	755	designed for athletic activity or protective use as these terms are defined in § 44-18-7.1(f). In 9
756	756	recognition of the work being performed by the streamlined sales and use tax governing board, 10
757	757	upon passage of any federal law that authorizes states to require remote sellers to collect and remit 11
758	758	sales and use taxes, this unlimited exemption will apply as it did prior to October 1, 2012. The 12
759	759	unlimited exemption on sales of clothing and footwear shall take effect on the date that the state 13
760	760	requires remote sellers to collect and remit sales and use taxes. 14
761	761	(28) Water for residential use. From the sale and from the storage, use, or other 15
762	762	consumption in this state of water furnished for domestic use by occupants of residential premises. 16
763	763	(29) Bibles. [Unconstitutional; see Ahlburn v. Clark, 728 A.2d 449 (R.I. 1999); see Notes 17
764	764	to Decisions.] From the sale and from the storage, use, or other consumption in the state of any 18
765	765	canonized scriptures of any tax-exempt nonprofit religious organization including, but not limited 19
766	766	to, the Old Testament and the New Testament versions. 20
767	767	(30) Boats. 21
768	768	(i) From the sale of a boat or vessel to a bona fide nonresident of this state who does not 22
769	769	register the boat or vessel in this state or document the boat or vessel with the United States 23
770	770	government at a home port within the state, whether the sale or delivery of the boat or vessel is 24
771	771	made in this state or elsewhere; provided, that the nonresident transports the boat within thirty (30) 25
772	772	days after delivery by the seller outside the state for use thereafter solely outside the state. 26
773	773	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 27
774	774	require the seller of the boat or vessel to keep records of the sales to bona fide nonresidents as the 28
775	775	tax administrator deems reasonably necessary to substantiate the exemption provided in this 29
776	776	subdivision, including the affidavit of the seller that the buyer represented himself or herself to be 30
777	777	a bona fide nonresident of this state and of the buyer that he or she is a nonresident of this state. 31
778	778	(31) Youth activities equipment. From the sale, storage, use, or other consumption in this 32
779	779	state of items for not more than twenty dollars ($20.00) each by nonprofit Rhode Island 33
780	780	eleemosynary organizations, for the purposes of youth activities that the organization is formed to 34
781	781
782	782
783	783	LC001049 - Page 22 of 30
784	784	sponsor and support; and by accredited elementary and secondary schools for the purposes of the 1
785	785	schools or of organized activities of the enrolled students. 2
786	786	(32) Farm equipment. From the sale and from the storage or use of machinery and 3
787	787	equipment used directly for commercial farming and agricultural production; including, but not 4
788	788	limited to: tractors, ploughs, harrows, spreaders, seeders, milking machines, silage conveyors, 5
789	789	balers, bulk milk storage tanks, trucks with farm plates, mowers, combines, irrigation equipment, 6
790	790	greenhouses and greenhouse coverings, graders and packaging machines, tools and supplies and 7
791	791	other farming equipment, including replacement parts appurtenant to or used in connection with 8
792	792	commercial farming and tools and supplies used in the repair and maintenance of farming 9
793	793	equipment. “Commercial farming” means the keeping or boarding of five (5) or more horses or the 10
794	794	production within this state of agricultural products, including, but not limited to, field or orchard 11
795	795	crops, livestock, dairy, and poultry, or their products, where the keeping, boarding, or production 12
796	796	provides at least two thousand five hundred dollars ($2,500) in annual gross sales to the operator, 13
797	797	whether an individual, a group, a partnership, or a corporation for exemptions issued prior to July 14
798	798	1, 2002. For exemptions issued or renewed after July 1, 2002, there shall be two (2) levels. Level I 15
799	799	shall be based on proof of annual, gross sales from commercial farming of at least twenty-five 16
800	800	hundred dollars ($2,500) and shall be valid for purchases subject to the exemption provided in this 17
801	801	subdivision except for motor vehicles with an excise tax value of five thousand dollars ($5,000) or 18
802	802	greater. Level II shall be based on proof of annual gross sales from commercial farming of at least 19
803	803	ten thousand dollars ($10,000) or greater and shall be valid for purchases subject to the exemption 20
804	804	provided in this subdivision including motor vehicles with an excise tax value of five thousand 21
805	805	dollars ($5,000) or greater. For the initial issuance of the exemptions, proof of the requisite amount 22
806	806	of annual gross sales from commercial farming shall be required for the prior year; for any renewal 23
807	807	of an exemption granted in accordance with this subdivision at either level I or level II, proof of 24
808	808	gross annual sales from commercial farming at the requisite amount shall be required for each of 25
809	809	the prior two (2) years. Certificates of exemption issued or renewed after July 1, 2002, shall clearly 26
810	810	indicate the level of the exemption and be valid for four (4) years after the date of issue. This 27
811	811	exemption applies even if the same equipment is used for ancillary uses, or is temporarily used for 28
812	812	a non-farming or a non-agricultural purpose, but shall not apply to motor vehicles acquired after 29
813	813	July 1, 2002, unless the vehicle is a farm vehicle as defined pursuant to § 31-1-8 and is eligible for 30
814	814	registration displaying farm plates as provided for in § 31-3-31. 31
815	815	(33) Compressed air. From the sale and from the storage, use, or other consumption in the 32
816	816	state of compressed air. 33
817	817	(34) Flags. From the sale and from the storage, consumption, or other use in this state of 34
818	818
819	819
820	820	LC001049 - Page 23 of 30
821	821	United States, Rhode Island or POW-MIA flags. 1
822	822	(35) Motor vehicle and adaptive equipment to certain veterans. From the sale of a motor 2
823	823	vehicle and adaptive equipment to and for the use of a veteran with a service-connected loss of or 3
824	824	the loss of use of a leg, foot, hand, or arm, or any veteran who is a double amputee, whether service 4
825	825	connected or not. The motor vehicle must be purchased by and especially equipped for use by the 5
826	826	qualifying veteran. Certificate of exemption or refunds of taxes paid is granted under rules or 6
827	827	regulations that the tax administrator may prescribe. 7
828	828	(36) Textbooks. From the sale and from the storage, use, or other consumption in this state 8
829	829	of textbooks by an “educational institution,” as defined in subsection (18) of this section, and any 9
830	830	educational institution within the purview of § 16-63-9(4), and used textbooks by any purveyor. 10
831	831	(37) Tangible personal property and supplies used in on-site hazardous waste recycling, 11
832	832	reuse, or treatment. From the sale, storage, use, or other consumption in this state of tangible 12
833	833	personal property or supplies used or consumed in the operation of equipment, the exclusive 13
834	834	function of which is the recycling, reuse, or recovery of materials (other than precious metals, as 14
835	835	defined in subdivision (24)(ii) of this section) from the treatment of “hazardous wastes,” as defined 15
836	836	in § 23-19.1-4, where the “hazardous wastes” are generated in Rhode Island solely by the same 16
837	837	taxpayer and where the personal property is located at, in, or adjacent to a generating facility of the 17
838	838	taxpayer in Rhode Island. The taxpayer shall procure an order from the director of the department 18
839	839	of environmental management certifying that the equipment and/or supplies as used or consumed, 19
840	840	qualify for the exemption under this subdivision. If any information relating to secret processes or 20
841	841	methods of manufacture, production, or treatment is disclosed to the department of environmental 21
842	842	management only to procure an order, and is a “trade secret” as defined in § 28-21-10(b), it is not 22
843	843	open to public inspection or publicly disclosed unless disclosure is required under chapter 21 of 23
844	844	title 28 or chapter 24.4 of title 23. 24
845	845	(38) Promotional and product literature of boat manufacturers. From the sale and from the 25
846	846	storage, use, or other consumption of promotional and product literature of boat manufacturers 26
847	847	shipped to points outside of Rhode Island that either: (i) Accompany the product that is sold; (ii) 27
848	848	Are shipped in bulk to out-of-state dealers for use in the sale of the product; or (iii) Are mailed to 28
849	849	customers at no charge. 29
850	850	(39) Food items paid for by food stamps. From the sale and from the storage, use, or other 30
851	851	consumption in this state of eligible food items payment for which is properly made to the retailer 31
852	852	in the form of U.S. government food stamps issued in accordance with the Food Stamp Act of 1977, 32
853	853	7 U.S.C. § 2011 et seq. 33
854	854	(40) Transportation charges. From the sale or hiring of motor carriers as defined in § 39-34
855	855
856	856
857	857	LC001049 - Page 24 of 30
858	858	12-2(12) to haul goods, when the contract or hiring cost is charged by a motor freight tariff filed 1
859	859	with the Rhode Island public utilities commission on the number of miles driven or by the number 2
860	860	of hours spent on the job. 3
861	861	(41) Trade-in value of boats. From the sale and from the storage, use, or other consumption 4
862	862	in this state of so much of the purchase price paid for a new or used boat as is allocated for a trade-5
863	863	in allowance on the boat of the buyer given in trade to the seller or of the proceeds applicable only 6
864	864	to the boat as are received from an insurance claim as a result of a stolen or damaged boat, towards 7
865	865	the purchase of a new or used boat by the buyer. 8
866	866	(42) Equipment used for research and development. From the sale and from the storage, 9
867	867	use, or other consumption of equipment to the extent used for research and development purposes 10
868	868	by a qualifying firm. For the purposes of this subsection, “qualifying firm” means a business for 11
869	869	which the use of research and development equipment is an integral part of its operation and 12
870	870	“equipment” means scientific equipment, computers, software, and related items. 13
871	871	(43) Coins. From the sale and from the other consumption in this state of coins having 14
872	872	numismatic or investment value. 15
873	873	(44) Farm structure construction materials. Lumber, hardware, and other materials used in 16
874	874	the new construction of farm structures, including production facilities such as, but not limited to: 17
875	875	farrowing sheds, free stall and stanchion barns, milking parlors, silos, poultry barns, laying houses, 18
876	876	fruit and vegetable storages, rooting cellars, propagation rooms, greenhouses, packing rooms, 19
877	877	machinery storage, seasonal farm worker housing, certified farm markets, bunker and trench silos, 20
878	878	feed storage sheds, and any other structures used in connection with commercial farming. 21
879	879	(45) Telecommunications carrier access service. Carrier access service or 22
880	880	telecommunications service when purchased by a telecommunications company from another 23
881	881	telecommunications company to facilitate the provision of telecommunications service. 24
882	882	(46) Boats or vessels brought into the state exclusively for winter storage, maintenance, 25
883	883	repair, or sale. Notwithstanding the provisions of §§ 44-18-10, 44-18-11 and 44-18-20, the tax 26
884	884	imposed by § 44-18-20 is not applicable for the period commencing on the first day of October in 27
885	885	any year up to and including the 30th day of April next succeeding with respect to the use of any 28
886	886	boat or vessel within this state exclusively for purposes of: (i) Delivery of the vessel to a facility in 29
887	887	this state for storage, including dry storage and storage in water by means of apparatus preventing 30
888	888	ice damage to the hull, maintenance, or repair; (ii) The actual process of storage, maintenance, or 31
889	889	repair of the boat or vessel; or (iii) Storage for the purpose of selling the boat or vessel. 32
890	890	(47) Jewelry display product. From the sale and from the storage, use, or other 33
891	891	consumption in this state of tangible personal property used to display any jewelry product; 34
892	892
893	893
894	894	LC001049 - Page 25 of 30
895	895	provided that title to the jewelry display product is transferred by the jewelry manufacturer or seller 1
896	896	and that the jewelry display product is shipped out of state for use solely outside the state and is not 2
897	897	returned to the jewelry manufacturer or seller. 3
898	898	(48) Boats or vessels generally. Notwithstanding the provisions of this chapter, the tax 4
899	899	imposed by §§ 44-18-20 and 44-18-18 shall not apply with respect to the sale and to the storage, 5
900	900	use, or other consumption in this state of any new or used boat. The exemption provided for in this 6
901	901	subdivision does not apply after October 1, 1993, unless prior to October 1, 1993, the federal ten 7
902	902	percent (10%) surcharge on luxury boats is repealed. 8
903	903	(49) Banks and regulated investment companies interstate toll-free calls. Notwithstanding 9
904	904	the provisions of this chapter, the tax imposed by this chapter does not apply to the furnishing of 10
905	905	interstate and international, toll-free terminating telecommunication service that is used directly 11
906	906	and exclusively by or for the benefit of an eligible company as defined in this subdivision; provided 12
907	907	that an eligible company employs on average during the calendar year no less than five hundred 13
908	908	(500) “full-time equivalent employees” as that term is defined in § 42-64.5-2. For purposes of this 14
909	909	section, an “eligible company” means a “regulated investment company” as that term is defined in 15
910	910	the Internal Revenue Code of 1986, 26 U.S.C. § 851, or a corporation to the extent the service is 16
911	911	provided, directly or indirectly, to or on behalf of a regulated investment company, an employee 17
912	912	benefit plan, a retirement plan or a pension plan, or a state-chartered bank. 18
913	913	(50) Mobile and manufactured homes generally. From the sale and from the storage, use, 19
914	914	or other consumption in this state of mobile and/or manufactured homes as defined and subject to 20
915	915	taxation pursuant to the provisions of chapter 44 of title 31. 21
916	916	(51) Manufacturing business reconstruction materials. 22
917	917	(i) From the sale and from the storage, use, or other consumption in this state of lumber, 23
918	918	hardware, and other building materials used in the reconstruction of a manufacturing business 24
919	919	facility that suffers a disaster, as defined in this subdivision, in this state. “Disaster” means any 25
920	920	occurrence, natural or otherwise, that results in the destruction of sixty percent (60%) or more of 26
921	921	an operating manufacturing business facility within this state. “Disaster” does not include any 27
922	922	damage resulting from the willful act of the owner of the manufacturing business facility. 28
923	923	(ii) Manufacturing business facility includes, but is not limited to, the structures housing 29
924	924	the production and administrative facilities. 30
925	925	(iii) In the event a manufacturer has more than one manufacturing site in this state, the sixty 31
926	926	percent (60%) provision applies to the damages suffered at that one site. 32
927	927	(iv) To the extent that the costs of the reconstruction materials are reimbursed by insurance, 33
928	928	this exemption does not apply. 34
929	929
930	930
931	931	LC001049 - Page 26 of 30
932	932	(52) Tangible personal property and supplies used in the processing or preparation of floral 1
933	933	products and floral arrangements. From the sale, storage, use, or other consumption in this state of 2
934	934	tangible personal property or supplies purchased by florists, garden centers, or other like producers 3
935	935	or vendors of flowers, plants, floral products, and natural and artificial floral arrangements that are 4
936	936	ultimately sold with flowers, plants, floral products, and natural and artificial floral arrangements 5
937	937	or are otherwise used in the decoration, fabrication, creation, processing, or preparation of flowers, 6
938	938	plants, floral products, or natural and artificial floral arrangements, including descriptive labels, 7
939	939	stickers, and cards affixed to the flower, plant, floral product, or arrangement, artificial flowers, 8
940	940	spray materials, floral paint and tint, plant shine, flower food, insecticide, and fertilizers. 9
941	941	(53) Horse food products. From the sale and from the storage, use, or other consumption 10
942	942	in this state of horse food products purchased by a person engaged in the business of the boarding 11
943	943	of horses. 12
944	944	(54) Non-motorized recreational vehicles sold to nonresidents. 13
945	945	(i) From the sale, subsequent to June 30, 2003, of a non-motorized recreational vehicle to 14
946	946	a bona fide nonresident of this state who does not register the non-motorized recreational vehicle 15
947	947	in this state, whether the sale or delivery of the non-motorized recreational vehicle is made in this 16
948	948	state or at the place of residence of the nonresident; provided that a non-motorized recreational 17
949	949	vehicle sold to a bona fide nonresident whose state of residence does not allow a like exemption to 18
950	950	its nonresidents is not exempt from the tax imposed under § 44-18-20; provided, further, that in 19
951	951	that event the bona fide nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate 20
952	952	that would be imposed in his or her state of residence not to exceed the rate that would have been 21
953	953	imposed under § 44-18-20. Notwithstanding any other provisions of law, a licensed, non-motorized 22
954	954	recreational vehicle dealer shall add and collect the tax required under this subdivision and remit 23
955	955	the tax to the tax administrator under the provisions of chapters 18 and 19 of this title. Provided, 24
956	956	that when a Rhode Island licensed, non-motorized recreational vehicle dealer is required to add and 25
957	957	collect the sales and use tax on the sale of a non-motorized recreational vehicle to a bona fide 26
958	958	nonresident as provided in this section, the dealer in computing the tax takes into consideration the 27
959	959	law of the state of the nonresident as it relates to the trade-in of motor vehicles. 28
960	960	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 29
961	961	require any licensed, non-motorized recreational vehicle dealer to keep records of sales to bona fide 30
962	962	nonresidents as the tax administrator deems reasonably necessary to substantiate the exemption 31
963	963	provided in this subdivision, including the affidavit of a licensed, non-motorized recreational 32
964	964	vehicle dealer that the purchaser of the non-motorized recreational vehicle was the holder of, and 33
965	965	had in his or her possession a valid out-of-state non-motorized recreational vehicle registration or 34
966	966
967	967
968	968	LC001049 - Page 27 of 30
969	969	a valid out-of-state driver’s license. 1
970	970	(iii) Any nonresident who registers a non-motorized recreational vehicle in this state within 2
971	971	ninety (90) days of the date of its sale to him or her is deemed to have purchased the non-motorized 3
972	972	recreational vehicle for use, storage, or other consumption in this state, and is subject to, and liable 4
973	973	for, the use tax imposed under the provisions of § 44-18-20. 5
974	974	(iv) “Non-motorized recreational vehicle” means any portable dwelling designed and 6
975	975	constructed to be used as a temporary dwelling for travel, camping, recreational, and vacation use 7
976	976	that is eligible to be registered for highway use, including, but not limited to, “pick-up coaches” or 8
977	977	“pick-up campers,” “travel trailers,” and “tent trailers” as those terms are defined in chapter 1 of 9
978	978	title 31. 10
979	979	(55) Sprinkler and fire alarm systems in existing buildings. From the sale in this state of 11
980	980	sprinkler and fire alarm systems; emergency lighting and alarm systems; and the materials 12
981	981	necessary and attendant to the installation of those systems that are required in buildings and 13
982	982	occupancies existing therein in July 2003 in order to comply with any additional requirements for 14
983	983	such buildings arising directly from the enactment of the Comprehensive Fire Safety Act of 2003 15
984	984	and that are not required by any other provision of law or ordinance or regulation adopted pursuant 16
985	985	to that act. The exemption provided in this subdivision shall expire on December 31, 2008. 17
986	986	(56) Aircraft. Notwithstanding the provisions of this chapter, the tax imposed by §§ 44-18
987	987	18-18 and 44-18-20 shall not apply with respect to the sale and to the storage, use, or other 19
988	988	consumption in this state of any new or used aircraft or aircraft parts. 20
989	989	(57) Renewable energy products. Notwithstanding any other provisions of Rhode Island 21
990	990	general laws, the following products shall also be exempt from sales tax: solar photovoltaic 22
991	991	modules or panels, or any module or panel that generates electricity from light; solar thermal 23
992	992	collectors, including, but not limited to, those manufactured with flat glass plates, extruded plastic, 24
993	993	sheet metal, and/or evacuated tubes; geothermal heat pumps, including both water-to-water and 25
994	994	water-to-air type pumps; wind turbines; towers used to mount wind turbines if specified by or sold 26
995	995	by a wind turbine manufacturer; DC to AC inverters that interconnect with utility power lines; and 27
996	996	manufactured mounting racks and ballast pans for solar collector, module, or panel installation. Not 28
997	997	to include materials that could be fabricated into such racks; monitoring and control equipment, if 29
998	998	specified or supplied by a manufacturer of solar thermal, solar photovoltaic, geothermal, or wind 30
999	999	energy systems or if required by law or regulation for such systems but not to include pumps, fans 31
1000	1000	or plumbing or electrical fixtures unless shipped from the manufacturer affixed to, or an integral 32
1001	1001	part of, another item specified on this list; and solar storage tanks that are part of a solar domestic 33
1002	1002	hot water system or a solar space heating system. If the tank comes with an external heat exchanger 34
1003	1003
1004	1004
1005	1005	LC001049 - Page 28 of 30
1006	1006	it shall also be tax exempt, but a standard hot water tank is not exempt from state sales tax. 1
1007	1007	(58) Returned property. The amount charged for property returned by customers upon 2
1008	1008	rescission of the contract of sale when the entire amount exclusive of handling charges paid for the 3
1009	1009	property is refunded in either cash or credit, and where the property is returned within one hundred 4
1010	1010	twenty (120) days from the date of delivery. 5
1011	1011	(59) Dietary supplements. From the sale and from the storage, use, or other consumption 6
1012	1012	of dietary supplements as defined in § 44-18-7.1(l)(v), sold on prescriptions. 7
1013	1013	(60) Blood. From the sale and from the storage, use, or other consumption of human blood. 8
1014	1014	(61) Agricultural products for human consumption. From the sale and from the storage, 9
1015	1015	use, or other consumption of livestock and poultry of the kinds of products that ordinarily constitute 10
1016	1016	food for human consumption and of livestock of the kind the products of which ordinarily constitute 11
1017	1017	fibers for human use. 12
1018	1018	(62) Diesel emission control technology. From the sale and use of diesel retrofit 13
1019	1019	technology that is required by § 31-47.3-4. 14
1020	1020	(63) Feed for certain animals used in commercial farming. From the sale of feed for 15
1021	1021	animals as described in subsection (61) of this section. 16
1022	1022	(64) Alcoholic beverages. From the sale and storage, use, or other consumption in this 17
1023	1023	state by a Class A licensee of alcoholic beverages, as defined in § 44-18-7.1, excluding beer and 18
1024	1024	malt beverages; provided, further, notwithstanding § 6-13-1 or any other general or public law to 19
1025	1025	the contrary, alcoholic beverages, as defined in § 44-18-7.1, shall not be subject to minimum 20
1026	1026	markup. 21
1027	1027	(65) Seeds and plants used to grow food and food ingredients. From the sale, storage, use, 22
1028	1028	or other consumption in this state of seeds and plants used to grow food and food ingredients as 23
1029	1029	defined in § 44-18-7.1(l)(i). “Seeds and plants used to grow food and food ingredients” shall not 24
1030	1030	include marijuana seeds or plants. 25
1031	1031	(66) Feminine hygiene products. From the sale and from the storage, use, or other 26
1032	1032	consumption of tampons, panty liners, menstrual cups, sanitary napkins, and other similar products 27
1033	1033	the principal use of which is feminine hygiene in connection with the menstrual cycle. 28
1034	1034	(67) “Breast pump collection and storage supplies” means items of tangible personal 29
1035	1035	property used in conjunction with a breast pump to collect milk expressed from a human breast and 30
1036	1036	to store collected milk until it is ready for consumption. “Breast pump collection and storage 31
1037	1037	supplies” include, but are not limited to, breast shields and breast shield connectors; breast pump 32
1038	1038	tubes and tubing adaptors; breast pump valves and membranes; backflow protectors and backflow 33
1039	1039	protector adaptors; bottles and bottle caps specific to the operation of the breast pump; breast milk 34
1040	1040
1041	1041
1042	1042	LC001049 - Page 29 of 30
1043	1043	storage bags; and related items sold as part of a breast pump kit pre-packaged by the breast pump 1
1044	1044	manufacturer. “Breast pump collection and storage supplies” does not include: bottles and bottle 2
1045	1045	caps not specific to the operation of the breast pump; breast pump travel bags and other similar 3
1046	1046	carrying accessories, including ice packs, labels, and other similar products, unless sold as part of 4
1047	1047	a breast pump kit pre-packed by the breast pump manufacturer; breast pump cleaning supplies, 5
1048	1048	unless sold as part of a breast pump kit pre-packaged by the breast pump manufacturer; nursing 6
1049	1049	bras, bra pads, breast shells, and other similar products; and creams, ointments, and other similar 7
1050	1050	products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples. 8
1051	1051	(68) Trade-in value of motorcycles. From the sale and from the storage, use, or other 9
1052	1052	consumption in this state of so much of the purchase price paid for a new or used motorcycle as is 10
1053	1053	allocated for a trade-in allowance on the motorcycle of the buyer given in trade to the seller, or of 11
1054	1054	the proceeds applicable only to the motorcycle as are received from the manufacturer of 12
1055	1055	motorcycles for the repurchase of the motorcycle whether the repurchase was voluntary or not 13
1056	1056	towards the purchase of a new or used motorcycle by the buyer. For the purpose of this subsection, 14
1057	1057	the word “motorcycle” means a motorcycle not used for hire and does not refer to any other type 15
1058	1058	of motor vehicle. 16
1059	1059	SECTION 3. This act shall take effect upon passage. 17
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1061	1061	LC001049
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1063	1063
1064	1064
1065	1065	LC001049 - Page 30 of 30
1066	1066	EXPLANATION
1067	1067	BY THE LEGISLATIVE COUNCIL
1068	1068	OF
1069	1069	A N A C T
1070	1070	RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND
1071	1071	COMPUTATION
1072	1072	***
1073	1073	This act would exempt from the sales and use tax, the sale of beer and malt beverages at 1
1074	1074	retail. 2
1075	1075	This act would take effect upon passage. 3
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1077	1077	LC001049
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