Rhode Island 2025 Regular Session

Rhode Island House Bill H5402 Compare Versions

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

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5	5	2025 -- H 5402
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7	7	LC000839
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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 -- BUSINESS CORPORATION TAX -- AFFORDABLE
16	16	HOUSING TAX CREDIT ACT
17	17	Introduced By: Representatives Place, Paplauskas, and Quattrocchi
18	18	Date Introduced: February 07, 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. Chapter 44-11 of the General Laws entitled "Business Corporation Tax" is 1
24	24	hereby amended by adding thereto the following section: 2
25	25	44-11-46. Affordable housing tax credit act. 3
26	26	(a) The legislature hereby finds and declares that the inadequate supply of sales and rental 4
27	27	housing units for persons and families of low-income, the deterioration of older dwellings, the 5
28	28	elimination of substandard dwellings by governmental action, and a shortage of suitable housing 6
29	29	for elderly and disabled individuals threaten the welfare of the citizens of this state. The legislature 7
30	30	further finds and declares that it is the public policy of the State of Rhode Island to promote the 8
31	31	health, safety, and welfare of its citizens by providing a tax credit for business firms that invest in 9
32	32	low-income rental housing production within this state. 10
33	33	(b) As used in this section the following terms have the following meanings: 11
34	34	(1) “Business firm” means any business entity authorized to do business in this state and 12
35	35	subject to taxes imposed under this chapter; 13
36	36	(2) “Credit” means the state low-income housing credit as established herein. 14
37	37	(3) “Federal low-income housing tax credit” means the federal low-income housing tax 15
38	38	credit as provided for in 26 U.S.C. § 42 of the Internal Revenue Code of 1986; 16
39	39	(c) Every business firm that is engaged in a for-profit business enterprise within this state 17
40	40	and that qualifies for a federal low-income housing tax credit shall qualify for the state low-income 18
41	41
42	42
43	43	LC000839 - Page 2 of 20
44	44	housing tax credit. A business firm that qualifies for the credit as provided for in this section may 1
45	45	apply the credit against any tax due under this chapter. 2
46	46	(d) The amount of the credit available to a business firm that qualifies under this section 3
47	47	shall be equal to fifty percent (50%) of the federal low-income housing tax credit that the business 4
48	48	firm is entitled to in the current tax year. 5
49	49	SECTION 2. Section 44-18-30 of the General Laws in Chapter 44-18 entitled "Sales and 6
50	50	Use Taxes — Liability and Computation" is hereby amended to read as follows: 7
51	51	44-18-30. Gross receipts exempt from sales and use taxes. 8
52	52	There are exempted from the taxes imposed by this chapter the following gross receipts: 9
53	53	(1) Sales and uses beyond constitutional power of state. From the sale and from the storage, 10
54	54	use, or other consumption in this state of tangible personal property the gross receipts from the sale 11
55	55	of which, or the storage, use, or other consumption of which, this state is prohibited from taxing 12
56	56	under the Constitution of the United States or under the constitution of this state. 13
57	57	(2) Newspapers. 14
58	58	(i) From the sale and from the storage, use, or other consumption in this state of any 15
59	59	newspaper. 16
60	60	(ii) “Newspaper” means an unbound publication printed on newsprint that contains news, 17
61	61	editorial comment, opinions, features, advertising matter, and other matters of public interest. 18
62	62	(iii) “Newspaper” does not include a magazine, handbill, circular, flyer, sales catalog, or 19
63	63	similar item unless the item is printed for, and distributed as, a part of a newspaper. 20
64	64	(3) School meals. From the sale and from the storage, use, or other consumption in this 21
65	65	state of meals served by public, private, or parochial schools, school districts, colleges, universities, 22
66	66	student organizations, and parent-teacher associations to the students or teachers of a school, 23
67	67	college, or university whether the meals are served by the educational institutions or by a food 24
68	68	service or management entity under contract to the educational institutions. 25
69	69	(4) Containers. 26
70	70	(i) From the sale and from the storage, use, or other consumption in this state of: 27
71	71	(A) Non-returnable containers, including boxes, paper bags, and wrapping materials that 28
72	72	are biodegradable and all bags and wrapping materials utilized in the medical and healing arts, 29
73	73	when sold without the contents to persons who place the contents in the container and sell the 30
74	74	contents with the container. 31
75	75	(B) Containers when sold with the contents if the sale price of the contents is not required 32
76	76	to be included in the measure of the taxes imposed by this chapter. 33
77	77	(C) Returnable containers when sold with the contents in connection with a retail sale of 34
78	78
79	79
80	80	LC000839 - Page 3 of 20
81	81	the contents or when resold for refilling. 1
82	82	(D) Keg and barrel containers, whether returnable or not, when sold to alcoholic beverage 2
83	83	producers who place the alcoholic beverages in the containers. 3
84	84	(ii) As used in this subdivision, the term “returnable containers” means containers of a kind 4
85	85	customarily returned by the buyer of the contents for reuse. All other containers are “non-returnable 5
86	86	containers.” 6
87	87	(5)(i) Charitable, educational, and religious organizations. From the sale to, as in defined 7
88	88	in this section, and from the storage, use, and other consumption in this state, or any other state of 8
89	89	the United States of America, of tangible personal property by hospitals not operated for a profit; 9
90	90	“educational institutions” as defined in subdivision (18) not operated for a profit; churches, 10
91	91	orphanages, and other institutions or organizations operated exclusively for religious or charitable 11
92	92	purposes; interest-free loan associations not operated for profit; nonprofit, organized sporting 12
93	93	leagues and associations and bands for boys and girls under the age of nineteen (19) years; the 13
94	94	following vocational student organizations that are state chapters of national vocational student 14
95	95	organizations: Distributive Education Clubs of America (DECA); Future Business Leaders of 15
96	96	America, Phi Beta Lambda (FBLA/PBL); Future Farmers of America (FFA); Future Homemakers 16
97	97	of America/Home Economics Related Occupations (FHA/HERD); Vocational Industrial Clubs of 17
98	98	America (VICA); organized nonprofit golden age and senior citizens clubs for men and women; 18
99	99	and parent-teacher associations; and from the sale, storage, use, and other consumption in this state, 19
100	100	of and by the Industrial Foundation of Burrillville, a Rhode Island domestic nonprofit corporation. 20
101	101	(ii) In the case of contracts entered into with the federal government, its agencies, or 21
102	102	instrumentalities, this state, or any other state of the United States of America, its agencies, any 22
103	103	city, town, district, or other political subdivision of the states; hospitals not operated for profit; 23
104	104	educational institutions not operated for profit; churches, orphanages, and other institutions or 24
105	105	organizations operated exclusively for religious or charitable purposes, the contractor may purchase 25
106	106	such materials and supplies (materials and/or supplies are defined as those that are essential to the 26
107	107	project) that are to be utilized in the construction of the projects being performed under the contracts 27
108	108	without payment of the tax. 28
109	109	(iii) The contractor shall not charge any sales or use tax to any exempt agency, institution, 29
110	110	or organization but shall in that instance provide his or her suppliers with certificates in the form 30
111	111	as determined by the division of taxation showing the reason for exemption and the contractor’s 31
112	112	records must substantiate the claim for exemption by showing the disposition of all property so 32
113	113	purchased. If any property is then used for a nonexempt purpose, the contractor must pay the tax 33
114	114	on the property used. 34
115	115
116	116
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118	118	(6) Gasoline. From the sale and from the storage, use, or other consumption in this state 1
119	119	of: (i) Gasoline and other products taxed under chapter 36 of title 31 and (ii) Fuels used for the 2
120	120	propulsion of airplanes. 3
121	121	(7) Purchase for manufacturing purposes. 4
122	122	(i) From the sale and from the storage, use, or other consumption in this state of computer 5
123	123	software, tangible personal property, electricity, natural gas, artificial gas, steam, refrigeration, and 6
124	124	water, when the property or service is purchased for the purpose of being manufactured into a 7
125	125	finished product for resale and becomes an ingredient, component, or integral part of the 8
126	126	manufactured, compounded, processed, assembled, or prepared product, or if the property or 9
127	127	service is consumed in the process of manufacturing for resale computer software, tangible personal 10
128	128	property, electricity, natural gas, artificial gas, steam, refrigeration, or water. 11
129	129	(ii) “Consumed” means destroyed, used up, or worn out to the degree or extent that the 12
130	130	property cannot be repaired, reconditioned, or rendered fit for further manufacturing use. 13
131	131	(iii) “Consumed” includes mere obsolescence. 14
132	132	(iv) “Manufacturing” means and includes: manufacturing, compounding, processing, 15
133	133	assembling, preparing, or producing. 16
134	134	(v) “Process of manufacturing” means and includes all production operations performed in 17
135	135	the producing or processing room, shop, or plant, insofar as the operations are a part of and 18
136	136	connected with the manufacturing for resale of tangible personal property, electricity, natural gas, 19
137	137	artificial gas, steam, refrigeration, or water and all production operations performed insofar as the 20
138	138	operations are a part of and connected with the manufacturing for resale of computer software. 21
139	139	(vi) “Process of manufacturing” does not mean or include administration operations such 22
140	140	as general office operations, accounting, collection, or sales promotion, nor does it mean or include 23
141	141	distribution operations that occur subsequent to production operations, such as handling, storing, 24
142	142	selling, and transporting the manufactured products, even though the administration and 25
143	143	distribution operations are performed by, or in connection with, a manufacturing business. 26
144	144	(8) State and political subdivisions. From the sale to, and from the storage, use, or other 27
145	145	consumption by, this state, any city, town, district, or other political subdivision of this state. Every 28
146	146	redevelopment agency created pursuant to chapter 31 of title 45 is deemed to be a subdivision of 29
147	147	the municipality where it is located. 30
148	148	(9) Food and food ingredients. From the sale and storage, use, or other consumption in this 31
149	149	state of food and food ingredients as defined in § 44-18-7.1(l). 32
150	150	For the purposes of this exemption “food and food ingredients” shall not include candy, 33
151	151	soft drinks, dietary supplements, alcoholic beverages, tobacco, food sold through vending 34
152	152
153	153
154	154	LC000839 - Page 5 of 20
155	155	machines, or prepared food, as those terms are defined in § 44-18-7.1, unless the prepared food is: 1
156	156	(i) Sold by a seller whose primary NAICS classification is manufacturing in sector 311, 2
157	157	except sub-sector 3118 (bakeries); 3
158	158	(ii) Sold in an unheated state by weight or volume as a single item; 4
159	159	(iii) Bakery items, including: bread, rolls, buns, biscuits, bagels, croissants, pastries, 5
160	160	donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, tortillas; and 6
161	161	is not sold with utensils provided by the seller, including: plates, knives, forks, spoons, 7
162	162	glasses, cups, napkins, or straws. 8
163	163	(10) Medicines, drugs, and durable medical equipment. From the sale and from the storage, 9
164	164	use, or other consumption in this state, of: 10
165	165	(i) “Drugs” as defined in § 44-18-7.1(h)(i), sold on prescriptions, medical oxygen, and 11
166	166	insulin whether or not sold on prescription. For purposes of this exemption drugs shall not include 12
167	167	over-the-counter drugs and grooming and hygiene products as defined in § 44-18-7.1(h)(iii). 13
168	168	(ii) Durable medical equipment as defined in § 44-18-7.1(k) for home use only, including, 14
169	169	but not limited to: syringe infusers, ambulatory drug delivery pumps, hospital beds, convalescent 15
170	170	chairs, and chair lifts. Supplies used in connection with syringe infusers and ambulatory drug 16
171	171	delivery pumps that are sold on prescription to individuals to be used by them to dispense or 17
172	172	administer prescription drugs, and related ancillary dressings and supplies used to dispense or 18
173	173	administer prescription drugs, shall also be exempt from tax. 19
174	174	(11) Prosthetic devices and mobility enhancing equipment. From the sale and from the 20
175	175	storage, use, or other consumption in this state, of prosthetic devices as defined in § 44-18-7.1(t), 21
176	176	sold on prescription, including, but not limited to: artificial limbs, dentures, spectacles, eyeglasses, 22
177	177	and artificial eyes; artificial hearing devices and hearing aids, whether or not sold on prescription; 23
178	178	and mobility enhancing equipment as defined in § 44-18-7.1(p), including wheelchairs, crutches, 24
179	179	and canes. 25
180	180	(12) Coffins, caskets, urns, shrouds and burial garments. From the sale and from the 26
181	181	storage, use, or other consumption in this state of coffins, caskets, burial containers, urns, urn liners, 27
182	182	urn vaults, grave liners, grave vaults, burial tent setups, prayer cards, shrouds, and other burial 28
183	183	garments that are ordinarily sold by a funeral director as part of the business of funeral directing. 29
184	184	(13) Motor vehicles sold to nonresidents. 30
185	185	(i) From the sale, subsequent to June 30, 1958, of a motor vehicle to a bona fide nonresident 31
186	186	of this state who does not register the motor vehicle in this state, whether the sale or delivery of the 32
187	187	motor vehicle is made in this state or at the place of residence of the nonresident. A motor vehicle 33
188	188	sold to a bona fide nonresident whose state of residence does not allow a like exemption to its 34
189	189
190	190
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192	192	nonresidents is not exempt from the tax imposed under § 44-18-20. In that event, the bona fide 1
193	193	nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate that would be imposed 2
194	194	in his or her state of residence not to exceed the rate that would have been imposed under § 44-18-3
195	195	20. Notwithstanding any other provisions of law, a licensed motor vehicle dealer shall add and 4
196	196	collect the tax required under this subdivision and remit the tax to the tax administrator under the 5
197	197	provisions of chapters 18 and 19 of this title. When a Rhode Island licensed, motor vehicle dealer 6
198	198	is required to add and collect the sales and use tax on the sale of a motor vehicle to a bona fide 7
199	199	nonresident as provided in this section, the dealer in computing the tax takes into consideration the 8
200	200	law of the state of the nonresident as it relates to the trade-in of motor vehicles. 9
201	201	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 10
202	202	require any licensed motor vehicle dealer to keep records of sales to bona fide nonresidents as the 11
203	203	tax administrator deems reasonably necessary to substantiate the exemption provided in this 12
204	204	subdivision, including the affidavit of a licensed motor vehicle dealer that the purchaser of the 13
205	205	motor vehicle was the holder of, and had in his or her possession a valid out-of-state motor vehicle 14
206	206	registration or a valid out-of-state driver’s license. 15
207	207	(iii) Any nonresident who registers a motor vehicle in this state within ninety (90) days of 16
208	208	the date of its sale to him or her is deemed to have purchased the motor vehicle for use, storage, or 17
209	209	other consumption in this state, and is subject to, and liable for, the use tax imposed under the 18
210	210	provisions of § 44-18-20. 19
211	211	(14) Sales in public buildings by blind people. From the sale and from the storage, use, or 20
212	212	other consumption in all public buildings in this state of all products or wares by any person 21
213	213	licensed under § 40-9-11.1. 22
214	214	(15) Air and water pollution control facilities. From the sale, storage, use, or other 23
215	215	consumption in this state of tangible personal property or supplies acquired for incorporation into 24
216	216	or used and consumed in the operation of a facility, the primary purpose of which is to aid in the 25
217	217	control of the pollution or contamination of the waters or air of the state, as defined in chapter 12 26
218	218	of title 46 and chapter 23 of title 23, respectively, and that has been certified as approved for that 27
219	219	purpose by the director of environmental management. The director of environmental management 28
220	220	may certify to a portion of the tangible personal property or supplies acquired for incorporation 29
221	221	into those facilities or used and consumed in the operation of those facilities to the extent that that 30
222	222	portion has as its primary purpose the control of the pollution or contamination of the waters or air 31
223	223	of this state. As used in this subdivision, “facility” means any land, facility, device, building, 32
224	224	machinery, or equipment. 33
225	225	(16) Camps. From the rental charged for living quarters, or sleeping, or housekeeping 34
226	226
227	227
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229	229	accommodations at camps or retreat houses operated by religious, charitable, educational, or other 1
230	230	organizations and associations mentioned in subsection (5), or by privately owned and operated 2
231	231	summer camps for children. 3
232	232	(17) Certain institutions. From the rental charged for living or sleeping quarters in an 4
233	233	institution licensed by the state for the hospitalization, custodial, or nursing care of human beings. 5
234	234	(18) Educational institutions. From the rental charged by any educational institution for 6
235	235	living quarters, or sleeping, or housekeeping accommodations or other rooms or accommodations 7
236	236	to any student or teacher necessitated by attendance at an educational institution. “Educational 8
237	237	institution” as used in this section means an institution of learning not operated for profit that is 9
238	238	empowered to confer diplomas, educational, literary, or academic degrees; that has a regular 10
239	239	faculty, curriculum, and organized body of pupils or students in attendance throughout the usual 11
240	240	school year; that keeps and furnishes to students and others records required and accepted for 12
241	241	entrance to schools of secondary, collegiate, or graduate rank; and no part of the net earnings of 13
242	242	which inures to the benefit of any individual. 14
243	243	(19) Motor vehicle and adaptive equipment for persons with disabilities. 15
244	244	(i) From the sale of: (A) Special adaptations; (B) The component parts of the special 16
245	245	adaptations; or (C) A specially adapted motor vehicle; provided that the owner furnishes to the tax 17
246	246	administrator an affidavit of a licensed physician to the effect that the specially adapted motor 18
247	247	vehicle is necessary to transport a family member with a disability or where the vehicle has been 19
248	248	specially adapted to meet the specific needs of the person with a disability. This exemption applies 20
249	249	to not more than one motor vehicle owned and registered for personal, noncommercial use. 21
250	250	(ii) For the purpose of this subsection the term “special adaptations” includes, but is not 22
251	251	limited to: wheelchair lifts, wheelchair carriers, wheelchair ramps, wheelchair securements, hand 23
252	252	controls, steering devices, extensions, relocations, and crossovers of operator controls, power-24
253	253	assisted controls, raised tops or dropped floors, raised entry doors, or alternative signaling devices 25
254	254	to auditory signals. 26
255	255	(iii) From the sale of: (a) Special adaptations, (b) The component parts of the special 27
256	256	adaptations, for a “wheelchair accessible taxicab” as defined in § 39-14-1, and/or a “wheelchair 28
257	257	accessible public motor vehicle” as defined in § 39-14.1-1. 29
258	258	(iv) For the purpose of this subdivision the exemption for a “specially adapted motor 30
259	259	vehicle” means a use tax credit not to exceed the amount of use tax that would otherwise be due on 31
260	260	the motor vehicle, exclusive of any adaptations. The use tax credit is equal to the cost of the special 32
261	261	adaptations, including installation. 33
262	262	(20) Heating fuels. From the sale and from the storage, use, or other consumption in this 34
263	263
264	264
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266	266	state of every type of heating fuel. 1
267	267	(21) Electricity and gas. From the sale and from the storage, use, or other consumption in 2
268	268	this state of electricity and gas. 3
269	269	(22) Manufacturing machinery and equipment. 4
270	270	(i) From the sale and from the storage, use, or other consumption in this state of tools, dies, 5
271	271	molds, machinery, equipment (including replacement parts), and related items to the extent used in 6
272	272	an industrial plant in connection with the actual manufacture, conversion, or processing of tangible 7
273	273	personal property, or to the extent used in connection with the actual manufacture, conversion, or 8
274	274	processing of computer software as that term is utilized in industry numbers 7371, 7372, and 7373 9
275	275	in the standard industrial classification manual prepared by the Technical Committee on Industrial 10
276	276	Classification, Office of Statistical Standards, Executive Office of the President, United States 11
277	277	Bureau of the Budget, as revised from time to time, to be sold, or that machinery and equipment 12
278	278	used in the furnishing of power to an industrial manufacturing plant. For the purposes of this 13
279	279	subdivision, “industrial plant” means a factory at a fixed location primarily engaged in the 14
280	280	manufacture, conversion, or processing of tangible personal property to be sold in the regular 15
281	281	course of business; 16
282	282	(ii) Machinery and equipment and related items are not deemed to be used in connection 17
283	283	with the actual manufacture, conversion, or processing of tangible personal property, or in 18
284	284	connection with the actual manufacture, conversion, or processing of computer software as that 19
285	285	term is utilized in industry numbers 7371, 7372, and 7373 in the standard industrial classification 20
286	286	manual prepared by the Technical Committee on Industrial Classification, Office of Statistical 21
287	287	Standards, Executive Office of the President, United States Bureau of the Budget, as revised from 22
288	288	time to time, to be sold to the extent the property is used in administration or distribution operations; 23
289	289	(iii) Machinery and equipment and related items used in connection with the actual 24
290	290	manufacture, conversion, or processing of any computer software or any tangible personal property 25
291	291	that is not to be sold and that would be exempt under subdivision (7) or this subdivision if purchased 26
292	292	from a vendor or machinery and equipment and related items used during any manufacturing, 27
293	293	converting, or processing function is exempt under this subdivision even if that operation, function, 28
294	294	or purpose is not an integral or essential part of a continuous production flow or manufacturing 29
295	295	process; 30
296	296	(iv) Where a portion of a group of portable or mobile machinery is used in connection with 31
297	297	the actual manufacture, conversion, or processing of computer software or tangible personal 32
298	298	property to be sold, as previously defined, that portion, if otherwise qualifying, is exempt under 33
299	299	this subdivision even though the machinery in that group is used interchangeably and not otherwise 34
300	300
301	301
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303	303	identifiable as to use. 1
304	304	(23) Trade-in value of motor vehicles. From the sale and from the storage, use, or other 2
305	305	consumption in this state of so much of the purchase price paid for a new or used automobile as is 3
306	306	allocated for a trade-in allowance on the automobile of the buyer given in trade to the seller, or of 4
307	307	the proceeds applicable only to the automobile as are received from the manufacturer of 5
308	308	automobiles for the repurchase of the automobile whether the repurchase was voluntary or not 6
309	309	towards the purchase of a new or used automobile by the buyer. For the purpose of this subdivision, 7
310	310	the word “automobile” means a private passenger automobile not used for hire and does not refer 8
311	311	to any other type of motor vehicle. 9
312	312	(24) Precious metal bullion. 10
313	313	(i) From the sale and from the storage, use, or other consumption in this state of precious 11
314	314	metal bullion, substantially equivalent to a transaction in securities or commodities. 12
315	315	(ii) For purposes of this subdivision, “precious metal bullion” means any elementary 13
316	316	precious metal that has been put through a process of smelting or refining, including, but not limited 14
317	317	to: gold, silver, platinum, rhodium, and chromium, and that is in a state or condition that its value 15
318	318	depends upon its content and not upon its form. 16
319	319	(iii) The term does not include fabricated precious metal that has been processed or 17
320	320	manufactured for some one or more specific and customary industrial, professional, or artistic uses. 18
321	321	(25) Commercial vessels. From sales made to a commercial ship, barge, or other vessel of 19
322	322	fifty (50) tons burden or over, primarily engaged in interstate or foreign commerce, and from the 20
323	323	repair, alteration, or conversion of the vessels, and from the sale of property purchased for the use 21
324	324	of the vessels including provisions, supplies, and material for the maintenance and/or repair of the 22
325	325	vessels. 23
326	326	(26) Commercial fishing vessels. From the sale and from the storage, use, or other 24
327	327	consumption in this state of vessels and other watercraft that are in excess of five (5) net tons and 25
328	328	that are used exclusively for “commercial fishing,” as defined in this subdivision, and from the 26
329	329	repair, alteration, or conversion of those vessels and other watercraft, and from the sale of property 27
330	330	purchased for the use of those vessels and other watercraft including provisions, supplies, and 28
331	331	material for the maintenance and/or repair of the vessels and other watercraft and the boats nets, 29
332	332	cables, tackle, and other fishing equipment appurtenant to or used in connection with the 30
333	333	commercial fishing of the vessels and other watercraft. “Commercial fishing” means taking or 31
334	334	attempting to take any fish, shellfish, crustacea, or bait species with the intent of disposing of it for 32
335	335	profit or by sale, barter, trade, or in commercial channels. The term does not include subsistence 33
336	336	fishing, i.e., the taking for personal use and not for sale or barter; or sport fishing; but shall include 34
337	337
338	338
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340	340	vessels and other watercraft with a Rhode Island party and charter boat license issued by the 1
341	341	department of environmental management pursuant to § 20-2-27.1 that meet the following criteria: 2
342	342	(i) The operator must have a current United States Coast Guard (U.S.C.G.) license to carry 3
343	343	passengers for hire; (ii) U.S.C.G. vessel documentation in the coast wide fishery trade; (iii) 4
344	344	U.S.C.G. vessel documentation as to proof of Rhode Island home port status or a Rhode Island boat 5
345	345	registration to prove Rhode Island home port status; and (iv) The vessel must be used as a 6
346	346	commercial passenger carrying fishing vessel to carry passengers for fishing. The vessel must be 7
347	347	able to demonstrate that at least fifty percent (50%) of its annual gross income derives from charters 8
348	348	or provides documentation of a minimum of one hundred (100) charter trips annually; and (v) The 9
349	349	vessel must have a valid Rhode Island party and charter boat license. The tax administrator shall 10
350	350	implement the provisions of this subdivision by promulgating rules and regulations relating thereto. 11
351	351	(27) Clothing and footwear. From the sales of articles of clothing, including footwear, 12
352	352	intended to be worn or carried on or about the human body for sales prior to October 1, 2012. 13
353	353	Effective October 1, 2012, the exemption will apply to the sales of articles of clothing, including 14
354	354	footwear, intended to be worn or carried on or about the human body up to two hundred and fifty 15
355	355	dollars ($250) of the sales price per item. For the purposes of this section, “clothing or footwear” 16
356	356	does not include clothing accessories or equipment or special clothing or footwear primarily 17
357	357	designed for athletic activity or protective use as these terms are defined in § 44-18-7.1(f). In 18
358	358	recognition of the work being performed by the streamlined sales and use tax governing board, 19
359	359	upon passage of any federal law that authorizes states to require remote sellers to collect and remit 20
360	360	sales and use taxes, this unlimited exemption will apply as it did prior to October 1, 2012. The 21
361	361	unlimited exemption on sales of clothing and footwear shall take effect on the date that the state 22
362	362	requires remote sellers to collect and remit sales and use taxes. 23
363	363	(28) Water for residential use. From the sale and from the storage, use, or other 24
364	364	consumption in this state of water furnished for domestic use by occupants of residential premises. 25
365	365	(29) Bibles. [Unconstitutional; see Ahlburn v. Clark, 728 A.2d 449 (R.I. 1999); see Notes 26
366	366	to Decisions.] From the sale and from the storage, use, or other consumption in the state of any 27
367	367	canonized scriptures of any tax-exempt nonprofit religious organization including, but not limited 28
368	368	to, the Old Testament and the New Testament versions. 29
369	369	(30) Boats. 30
370	370	(i) From the sale of a boat or vessel to a bona fide nonresident of this state who does not 31
371	371	register the boat or vessel in this state or document the boat or vessel with the United States 32
372	372	government at a home port within the state, whether the sale or delivery of the boat or vessel is 33
373	373	made in this state or elsewhere; provided, that the nonresident transports the boat within thirty (30) 34
374	374
375	375
376	376	LC000839 - Page 11 of 20
377	377	days after delivery by the seller outside the state for use thereafter solely outside the state. 1
378	378	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 2
379	379	require the seller of the boat or vessel to keep records of the sales to bona fide nonresidents as the 3
380	380	tax administrator deems reasonably necessary to substantiate the exemption provided in this 4
381	381	subdivision, including the affidavit of the seller that the buyer represented himself or herself to be 5
382	382	a bona fide nonresident of this state and of the buyer that he or she is a nonresident of this state. 6
383	383	(31) Youth activities equipment. From the sale, storage, use, or other consumption in this 7
384	384	state of items for not more than twenty dollars ($20.00) each by nonprofit Rhode Island 8
385	385	eleemosynary organizations, for the purposes of youth activities that the organization is formed to 9
386	386	sponsor and support; and by accredited elementary and secondary schools for the purposes of the 10
387	387	schools or of organized activities of the enrolled students. 11
388	388	(32) Farm equipment. From the sale and from the storage or use of machinery and 12
389	389	equipment used directly for commercial farming and agricultural production; including, but not 13
390	390	limited to: tractors, ploughs, harrows, spreaders, seeders, milking machines, silage conveyors, 14
391	391	balers, bulk milk storage tanks, trucks with farm plates, mowers, combines, irrigation equipment, 15
392	392	greenhouses and greenhouse coverings, graders and packaging machines, tools and supplies and 16
393	393	other farming equipment, including replacement parts appurtenant to or used in connection with 17
394	394	commercial farming and tools and supplies used in the repair and maintenance of farming 18
395	395	equipment. “Commercial farming” means the keeping or boarding of five (5) or more horses or the 19
396	396	production within this state of agricultural products, including, but not limited to, field or orchard 20
397	397	crops, livestock, dairy, and poultry, or their products, where the keeping, boarding, or production 21
398	398	provides at least two thousand five hundred dollars ($2,500) in annual gross sales to the operator, 22
399	399	whether an individual, a group, a partnership, or a corporation for exemptions issued prior to July 23
400	400	1, 2002. For exemptions issued or renewed after July 1, 2002, there shall be two (2) levels. Level I 24
401	401	shall be based on proof of annual, gross sales from commercial farming of at least twenty-five 25
402	402	hundred dollars ($2,500) and shall be valid for purchases subject to the exemption provided in this 26
403	403	subdivision except for motor vehicles with an excise tax value of five thousand dollars ($5,000) or 27
404	404	greater. Level II shall be based on proof of annual gross sales from commercial farming of at least 28
405	405	ten thousand dollars ($10,000) or greater and shall be valid for purchases subject to the exemption 29
406	406	provided in this subdivision including motor vehicles with an excise tax value of five thousand 30
407	407	dollars ($5,000) or greater. For the initial issuance of the exemptions, proof of the requisite amount 31
408	408	of annual gross sales from commercial farming shall be required for the prior year; for any renewal 32
409	409	of an exemption granted in accordance with this subdivision at either level I or level II, proof of 33
410	410	gross annual sales from commercial farming at the requisite amount shall be required for each of 34
411	411
412	412
413	413	LC000839 - Page 12 of 20
414	414	the prior two (2) years. Certificates of exemption issued or renewed after July 1, 2002, shall clearly 1
415	415	indicate the level of the exemption and be valid for four (4) years after the date of issue. This 2
416	416	exemption applies even if the same equipment is used for ancillary uses, or is temporarily used for 3
417	417	a non-farming or a non-agricultural purpose, but shall not apply to motor vehicles acquired after 4
418	418	July 1, 2002, unless the vehicle is a farm vehicle as defined pursuant to § 31-1-8 and is eligible for 5
419	419	registration displaying farm plates as provided for in § 31-3-31. 6
420	420	(33) Compressed air. From the sale and from the storage, use, or other consumption in the 7
421	421	state of compressed air. 8
422	422	(34) Flags. From the sale and from the storage, consumption, or other use in this state of 9
423	423	United States, Rhode Island or POW-MIA flags. 10
424	424	(35) Motor vehicle and adaptive equipment to certain veterans. From the sale of a motor 11
425	425	vehicle and adaptive equipment to and for the use of a veteran with a service-connected loss of or 12
426	426	the loss of use of a leg, foot, hand, or arm, or any veteran who is a double amputee, whether service 13
427	427	connected or not. The motor vehicle must be purchased by and especially equipped for use by the 14
428	428	qualifying veteran. Certificate of exemption or refunds of taxes paid is granted under rules or 15
429	429	regulations that the tax administrator may prescribe. 16
430	430	(36) Textbooks. From the sale and from the storage, use, or other consumption in this state 17
431	431	of textbooks by an “educational institution,” as defined in subsection (18) of this section, and any 18
432	432	educational institution within the purview of § 16-63-9(4), and used textbooks by any purveyor. 19
433	433	(37) Tangible personal property and supplies used in on-site hazardous waste recycling, 20
434	434	reuse, or treatment. From the sale, storage, use, or other consumption in this state of tangible 21
435	435	personal property or supplies used or consumed in the operation of equipment, the exclusive 22
436	436	function of which is the recycling, reuse, or recovery of materials (other than precious metals, as 23
437	437	defined in subdivision (24)(ii) of this section) from the treatment of “hazardous wastes,” as defined 24
438	438	in § 23-19.1-4, where the “hazardous wastes” are generated in Rhode Island solely by the same 25
439	439	taxpayer and where the personal property is located at, in, or adjacent to a generating facility of the 26
440	440	taxpayer in Rhode Island. The taxpayer shall procure an order from the director of the department 27
441	441	of environmental management certifying that the equipment and/or supplies as used or consumed, 28
442	442	qualify for the exemption under this subdivision. If any information relating to secret processes or 29
443	443	methods of manufacture, production, or treatment is disclosed to the department of environmental 30
444	444	management only to procure an order, and is a “trade secret” as defined in § 28-21-10(b), it is not 31
445	445	open to public inspection or publicly disclosed unless disclosure is required under chapter 21 of 32
446	446	title 28 or chapter 24.4 of title 23. 33
447	447	(38) Promotional and product literature of boat manufacturers. From the sale and from the 34
448	448
449	449
450	450	LC000839 - Page 13 of 20
451	451	storage, use, or other consumption of promotional and product literature of boat manufacturers 1
452	452	shipped to points outside of Rhode Island that either: (i) Accompany the product that is sold; (ii) 2
453	453	Are shipped in bulk to out-of-state dealers for use in the sale of the product; or (iii) Are mailed to 3
454	454	customers at no charge. 4
455	455	(39) Food items paid for by food stamps. From the sale and from the storage, use, or other 5
456	456	consumption in this state of eligible food items payment for which is properly made to the retailer 6
457	457	in the form of U.S. government food stamps issued in accordance with the Food Stamp Act of 1977, 7
458	458	7 U.S.C. § 2011 et seq. 8
459	459	(40) Transportation charges. From the sale or hiring of motor carriers as defined in § 39-9
460	460	12-2(12) to haul goods, when the contract or hiring cost is charged by a motor freight tariff filed 10
461	461	with the Rhode Island public utilities commission on the number of miles driven or by the number 11
462	462	of hours spent on the job. 12
463	463	(41) Trade-in value of boats. From the sale and from the storage, use, or other consumption 13
464	464	in this state of so much of the purchase price paid for a new or used boat as is allocated for a trade-14
465	465	in allowance on the boat of the buyer given in trade to the seller or of the proceeds applicable only 15
466	466	to the boat as are received from an insurance claim as a result of a stolen or damaged boat, towards 16
467	467	the purchase of a new or used boat by the buyer. 17
468	468	(42) Equipment used for research and development. From the sale and from the storage, 18
469	469	use, or other consumption of equipment to the extent used for research and development purposes 19
470	470	by a qualifying firm. For the purposes of this subsection, “qualifying firm” means a business for 20
471	471	which the use of research and development equipment is an integral part of its operation and 21
472	472	“equipment” means scientific equipment, computers, software, and related items. 22
473	473	(43) Coins. From the sale and from the other consumption in this state of coins having 23
474	474	numismatic or investment value. 24
475	475	(44) Farm structure construction materials. Lumber, hardware, and other materials used in 25
476	476	the new construction of farm structures, including production facilities such as, but not limited to: 26
477	477	farrowing sheds, free stall and stanchion barns, milking parlors, silos, poultry barns, laying houses, 27
478	478	fruit and vegetable storages, rooting cellars, propagation rooms, greenhouses, packing rooms, 28
479	479	machinery storage, seasonal farm worker housing, certified farm markets, bunker and trench silos, 29
480	480	feed storage sheds, and any other structures used in connection with commercial farming. 30
481	481	(45) Telecommunications carrier access service. Carrier access service or 31
482	482	telecommunications service when purchased by a telecommunications company from another 32
483	483	telecommunications company to facilitate the provision of telecommunications service. 33
484	484	(46) Boats or vessels brought into the state exclusively for winter storage, maintenance, 34
485	485
486	486
487	487	LC000839 - Page 14 of 20
488	488	repair, or sale. Notwithstanding the provisions of §§ 44-18-10, 44-18-11 and 44-18-20, the tax 1
489	489	imposed by § 44-18-20 is not applicable for the period commencing on the first day of October in 2
490	490	any year up to and including the 30th day of April next succeeding with respect to the use of any 3
491	491	boat or vessel within this state exclusively for purposes of: (i) Delivery of the vessel to a facility in 4
492	492	this state for storage, including dry storage and storage in water by means of apparatus preventing 5
493	493	ice damage to the hull, maintenance, or repair; (ii) The actual process of storage, maintenance, or 6
494	494	repair of the boat or vessel; or (iii) Storage for the purpose of selling the boat or vessel. 7
495	495	(47) Jewelry display product. From the sale and from the storage, use, or other 8
496	496	consumption in this state of tangible personal property used to display any jewelry product; 9
497	497	provided that title to the jewelry display product is transferred by the jewelry manufacturer or seller 10
498	498	and that the jewelry display product is shipped out of state for use solely outside the state and is not 11
499	499	returned to the jewelry manufacturer or seller. 12
500	500	(48) Boats or vessels generally. Notwithstanding the provisions of this chapter, the tax 13
501	501	imposed by §§ 44-18-20 and 44-18-18 shall not apply with respect to the sale and to the storage, 14
502	502	use, or other consumption in this state of any new or used boat. The exemption provided for in this 15
503	503	subdivision does not apply after October 1, 1993, unless prior to October 1, 1993, the federal ten 16
504	504	percent (10%) surcharge on luxury boats is repealed. 17
505	505	(49) Banks and regulated investment companies interstate toll-free calls. Notwithstanding 18
506	506	the provisions of this chapter, the tax imposed by this chapter does not apply to the furnishing of 19
507	507	interstate and international, toll-free terminating telecommunication service that is used directly 20
508	508	and exclusively by or for the benefit of an eligible company as defined in this subdivision; provided 21
509	509	that an eligible company employs on average during the calendar year no less than five hundred 22
510	510	(500) “full-time equivalent employees” as that term is defined in § 42-64.5-2. For purposes of this 23
511	511	section, an “eligible company” means a “regulated investment company” as that term is defined in 24
512	512	the Internal Revenue Code of 1986, 26 U.S.C. § 851, or a corporation to the extent the service is 25
513	513	provided, directly or indirectly, to or on behalf of a regulated investment company, an employee 26
514	514	benefit plan, a retirement plan or a pension plan, or a state-chartered bank. 27
515	515	(50) Mobile and manufactured homes generally. From the sale and from the storage, use, 28
516	516	or other consumption in this state of mobile and/or manufactured homes as defined and subject to 29
517	517	taxation pursuant to the provisions of chapter 44 of title 31. 30
518	518	(51) Manufacturing business reconstruction materials. 31
519	519	(i) From the sale and from the storage, use, or other consumption in this state of lumber, 32
520	520	hardware, and other building materials used in the reconstruction of a manufacturing business 33
521	521	facility that suffers a disaster, as defined in this subdivision, in this state. “Disaster” means any 34
522	522
523	523
524	524	LC000839 - Page 15 of 20
525	525	occurrence, natural or otherwise, that results in the destruction of sixty percent (60%) or more of 1
526	526	an operating manufacturing business facility within this state. “Disaster” does not include any 2
527	527	damage resulting from the willful act of the owner of the manufacturing business facility. 3
528	528	(ii) Manufacturing business facility includes, but is not limited to, the structures housing 4
529	529	the production and administrative facilities. 5
530	530	(iii) In the event a manufacturer has more than one manufacturing site in this state, the sixty 6
531	531	percent (60%) provision applies to the damages suffered at that one site. 7
532	532	(iv) To the extent that the costs of the reconstruction materials are reimbursed by insurance, 8
533	533	this exemption does not apply. 9
534	534	(52) Tangible personal property and supplies used in the processing or preparation of floral 10
535	535	products and floral arrangements. From the sale, storage, use, or other consumption in this state of 11
536	536	tangible personal property or supplies purchased by florists, garden centers, or other like producers 12
537	537	or vendors of flowers, plants, floral products, and natural and artificial floral arrangements that are 13
538	538	ultimately sold with flowers, plants, floral products, and natural and artificial floral arrangements 14
539	539	or are otherwise used in the decoration, fabrication, creation, processing, or preparation of flowers, 15
540	540	plants, floral products, or natural and artificial floral arrangements, including descriptive labels, 16
541	541	stickers, and cards affixed to the flower, plant, floral product, or arrangement, artificial flowers, 17
542	542	spray materials, floral paint and tint, plant shine, flower food, insecticide, and fertilizers. 18
543	543	(53) Horse food products. From the sale and from the storage, use, or other consumption 19
544	544	in this state of horse food products purchased by a person engaged in the business of the boarding 20
545	545	of horses. 21
546	546	(54) Non-motorized recreational vehicles sold to nonresidents. 22
547	547	(i) From the sale, subsequent to June 30, 2003, of a non-motorized recreational vehicle to 23
548	548	a bona fide nonresident of this state who does not register the non-motorized recreational vehicle 24
549	549	in this state, whether the sale or delivery of the non-motorized recreational vehicle is made in this 25
550	550	state or at the place of residence of the nonresident; provided that a non-motorized recreational 26
551	551	vehicle sold to a bona fide nonresident whose state of residence does not allow a like exemption to 27
552	552	its nonresidents is not exempt from the tax imposed under § 44-18-20; provided, further, that in 28
553	553	that event the bona fide nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate 29
554	554	that would be imposed in his or her state of residence not to exceed the rate that would have been 30
555	555	imposed under § 44-18-20. Notwithstanding any other provisions of law, a licensed, non-motorized 31
556	556	recreational vehicle dealer shall add and collect the tax required under this subdivision and remit 32
557	557	the tax to the tax administrator under the provisions of chapters 18 and 19 of this title. Provided, 33
558	558	that when a Rhode Island licensed, non-motorized recreational vehicle dealer is required to add and 34
559	559
560	560
561	561	LC000839 - Page 16 of 20
562	562	collect the sales and use tax on the sale of a non-motorized recreational vehicle to a bona fide 1
563	563	nonresident as provided in this section, the dealer in computing the tax takes into consideration the 2
564	564	law of the state of the nonresident as it relates to the trade-in of motor vehicles. 3
565	565	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 4
566	566	require any licensed, non-motorized recreational vehicle dealer to keep records of sales to bona fide 5
567	567	nonresidents as the tax administrator deems reasonably necessary to substantiate the exemption 6
568	568	provided in this subdivision, including the affidavit of a licensed, non-motorized recreational 7
569	569	vehicle dealer that the purchaser of the non-motorized recreational vehicle was the holder of, and 8
570	570	had in his or her possession a valid out-of-state non-motorized recreational vehicle registration or 9
571	571	a valid out-of-state driver’s license. 10
572	572	(iii) Any nonresident who registers a non-motorized recreational vehicle in this state within 11
573	573	ninety (90) days of the date of its sale to him or her is deemed to have purchased the non-motorized 12
574	574	recreational vehicle for use, storage, or other consumption in this state, and is subject to, and liable 13
575	575	for, the use tax imposed under the provisions of § 44-18-20. 14
576	576	(iv) “Non-motorized recreational vehicle” means any portable dwelling designed and 15
577	577	constructed to be used as a temporary dwelling for travel, camping, recreational, and vacation use 16
578	578	that is eligible to be registered for highway use, including, but not limited to, “pick-up coaches” or 17
579	579	“pick-up campers,” “travel trailers,” and “tent trailers” as those terms are defined in chapter 1 of 18
580	580	title 31. 19
581	581	(55) Sprinkler and fire alarm systems in existing buildings. From the sale in this state of 20
582	582	sprinkler and fire alarm systems; emergency lighting and alarm systems; and the materials 21
583	583	necessary and attendant to the installation of those systems that are required in buildings and 22
584	584	occupancies existing therein in July 2003 in order to comply with any additional requirements for 23
585	585	such buildings arising directly from the enactment of the Comprehensive Fire Safety Act of 2003 24
586	586	and that are not required by any other provision of law or ordinance or regulation adopted pursuant 25
587	587	to that act. The exemption provided in this subdivision shall expire on December 31, 2008. 26
588	588	(56) Aircraft. Notwithstanding the provisions of this chapter, the tax imposed by §§ 44-27
589	589	18-18 and 44-18-20 shall not apply with respect to the sale and to the storage, use, or other 28
590	590	consumption in this state of any new or used aircraft or aircraft parts. 29
591	591	(57) Renewable energy products. Notwithstanding any other provisions of Rhode Island 30
592	592	general laws, the following products shall also be exempt from sales tax: solar photovoltaic 31
593	593	modules or panels, or any module or panel that generates electricity from light; solar thermal 32
594	594	collectors, including, but not limited to, those manufactured with flat glass plates, extruded plastic, 33
595	595	sheet metal, and/or evacuated tubes; geothermal heat pumps, including both water-to-water and 34
596	596
597	597
598	598	LC000839 - Page 17 of 20
599	599	water-to-air type pumps; wind turbines; towers used to mount wind turbines if specified by or sold 1
600	600	by a wind turbine manufacturer; DC to AC inverters that interconnect with utility power lines; and 2
601	601	manufactured mounting racks and ballast pans for solar collector, module, or panel installation. Not 3
602	602	to include materials that could be fabricated into such racks; monitoring and control equipment, if 4
603	603	specified or supplied by a manufacturer of solar thermal, solar photovoltaic, geothermal, or wind 5
604	604	energy systems or if required by law or regulation for such systems but not to include pumps, fans 6
605	605	or plumbing or electrical fixtures unless shipped from the manufacturer affixed to, or an integral 7
606	606	part of, another item specified on this list; and solar storage tanks that are part of a solar domestic 8
607	607	hot water system or a solar space heating system. If the tank comes with an external heat exchanger 9
608	608	it shall also be tax exempt, but a standard hot water tank is not exempt from state sales tax. 10
609	609	(58) Returned property. The amount charged for property returned by customers upon 11
610	610	rescission of the contract of sale when the entire amount exclusive of handling charges paid for the 12
611	611	property is refunded in either cash or credit, and where the property is returned within one hundred 13
612	612	twenty (120) days from the date of delivery. 14
613	613	(59) Dietary supplements. From the sale and from the storage, use, or other consumption 15
614	614	of dietary supplements as defined in § 44-18-7.1(l)(v), sold on prescriptions. 16
615	615	(60) Blood. From the sale and from the storage, use, or other consumption of human blood. 17
616	616	(61) Agricultural products for human consumption. From the sale and from the storage, 18
617	617	use, or other consumption of livestock and poultry of the kinds of products that ordinarily constitute 19
618	618	food for human consumption and of livestock of the kind the products of which ordinarily constitute 20
619	619	fibers for human use. 21
620	620	(62) Diesel emission control technology. From the sale and use of diesel retrofit 22
621	621	technology that is required by § 31-47.3-4. 23
622	622	(63) Feed for certain animals used in commercial farming. From the sale of feed for 24
623	623	animals as described in subsection (61) of this section. 25
624	624	(64) Alcoholic beverages. From the sale and storage, use, or other consumption in this 26
625	625	state by a Class A licensee of alcoholic beverages, as defined in § 44-18-7.1, excluding beer and 27
626	626	malt beverages; provided, further, notwithstanding § 6-13-1 or any other general or public law to 28
627	627	the contrary, alcoholic beverages, as defined in § 44-18-7.1, shall not be subject to minimum 29
628	628	markup. 30
629	629	(65) Seeds and plants used to grow food and food ingredients. From the sale, storage, use, 31
630	630	or other consumption in this state of seeds and plants used to grow food and food ingredients as 32
631	631	defined in § 44-18-7.1(l)(i). “Seeds and plants used to grow food and food ingredients” shall not 33
632	632	include marijuana seeds or plants. 34
633	633
634	634
635	635	LC000839 - Page 18 of 20
636	636	(66) Feminine hygiene products. From the sale and from the storage, use, or other 1
637	637	consumption of tampons, panty liners, menstrual cups, sanitary napkins, and other similar products 2
638	638	the principal use of which is feminine hygiene in connection with the menstrual cycle. 3
639	639	(67) “Breast pump collection and storage supplies” means items of tangible personal 4
640	640	property used in conjunction with a breast pump to collect milk expressed from a human breast and 5
641	641	to store collected milk until it is ready for consumption. “Breast pump collection and storage 6
642	642	supplies” include, but are not limited to, breast shields and breast shield connectors; breast pump 7
643	643	tubes and tubing adaptors; breast pump valves and membranes; backflow protectors and backflow 8
644	644	protector adaptors; bottles and bottle caps specific to the operation of the breast pump; breast milk 9
645	645	storage bags; and related items sold as part of a breast pump kit pre-packaged by the breast pump 10
646	646	manufacturer. “Breast pump collection and storage supplies” does not include: bottles and bottle 11
647	647	caps not specific to the operation of the breast pump; breast pump travel bags and other similar 12
648	648	carrying accessories, including ice packs, labels, and other similar products, unless sold as part of 13
649	649	a breast pump kit pre-packed by the breast pump manufacturer; breast pump cleaning supplies, 14
650	650	unless sold as part of a breast pump kit pre-packaged by the breast pump manufacturer; nursing 15
651	651	bras, bra pads, breast shells, and other similar products; and creams, ointments, and other similar 16
652	652	products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples. 17
653	653	(68) Trade-in value of motorcycles. From the sale and from the storage, use, or other 18
654	654	consumption in this state of so much of the purchase price paid for a new or used motorcycle as is 19
655	655	allocated for a trade-in allowance on the motorcycle of the buyer given in trade to the seller, or of 20
656	656	the proceeds applicable only to the motorcycle as are received from the manufacturer of 21
657	657	motorcycles for the repurchase of the motorcycle whether the repurchase was voluntary or not 22
658	658	towards the purchase of a new or used motorcycle by the buyer. For the purpose of this subsection, 23
659	659	the word “motorcycle” means a motorcycle not used for hire and does not refer to any other type 24
660	660	of motor vehicle. 25
661	661	(69) From the sale and from the storage, use, or other consumption in this state of materials 26
662	662	used in the renovations of affordable rental housing properties. 27
663	663	SECTION 3. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is hereby 28
664	664	amended by adding thereto the following section: 29
665	665	44-30-8. Exemption for the sale of deed restricted affordable property. 30
666	666	Any income derived from the sale of residential property that has been issued an occupancy 31
667	667	permit on or after January 1, 1995, after renovations as defined by the U.S. Department of Housing 32
668	668	and Urban Development, and that is encumbered by a covenant recorded in the land records in 33
669	669	favor of a governmental unit or the Rhode Island housing and mortgage finance corporation 34
670	670
671	671
672	672	LC000839 - Page 19 of 20
673	673	restricting either or both the rents that may be charged to tenants of the property or the incomes of 1
674	674	the occupants of the property, shall not be subject to any taxation in this title. 2
675	675	SECTION 4. Chapter 44-5 of the General Laws entitled "Levy and Assessment of Local 3
676	676	Taxes" is hereby amended by adding thereto the following section: 4
677	677	44-5-89. Tax valuation freeze on newly renovated affordable rental housing 5
678	678	properties. 6
679	679	The assessed tax valuation of any residential property that has been issued an occupancy 7
680	680	permit on or after January 1, 1995, after renovations as defined by the U.S. Department of Housing 8
681	681	and Urban Development, and that is encumbered by a covenant recorded in the land records in 9
682	682	favor of a governmental unit or the Rhode Island housing and mortgage finance corporation 10
683	683	restricting either or both the rents that may be charged to tenants of the property or the incomes of 11
684	684	the occupants of the property, shall remain at the most recent assessed tax valuation prior to the 12
685	685	completion of the renovation for ten (10) years following the completion of the renovation. 13
686	686	SECTION 5. This act shall take effect upon passage. 14
687	687	========
688	688	LC000839
689	689	========
690	690
691	691
692	692	LC000839 - Page 20 of 20
693	693	EXPLANATION
694	694	BY THE LEGISLATIVE COUNCIL
695	695	OF
696	696	A N A C T
697	697	RELATING TO TAXATION -- BUSINESS CORPORATION TAX -- AFFORDABLE
698	698	HOUSING TAX CREDIT ACT
699	699	***
700	700	This act would create an affordable housing business tax credit as well as eliminate sale 1
701	701	tax on any materials purchased for use in the renovation of affordable rental housing. 2
702	702	This act would also eliminate the income tax on any income derived from the sale of any 3
703	703	real property deed restricted as affordable housing and would establish a ten-year freeze on the tax 4
704	704	valuation of newly renovated affordable rental housing at pre-renovations valuation. 5
705	705	This act would take effect upon passage. 6
706	706	========
707	707	LC000839
708	708	========