Rhode Island 2025 Regular Session

Rhode Island House Bill H6256 Compare Versions

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

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5	5	2025 -- H 6256
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7	7	LC002767
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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 -- PROPERTY SUBJECT TO TAXATION
16	16	Introduced By: Representatives J. Lombardi, Potter, Perez, Biah, Morales, Ajello, Felix,
17	17	Sanchez, Cruz, and Hull
18	18	Date Introduced: April 23, 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 44-3-3 of the General Laws in Chapter 44-3 entitled "Property 1
24	24	Subject to Taxation" is hereby amended to read as follows: 2
25	25	44-3-3. Property exempt. 3
26	26	(a) The following property is exempt from taxation: 4
27	27	(1) Property belonging to the state, except as provided in § 44-4-4.1; 5
28	28	(2) Lands ceded or belonging to the United States; 6
29	29	(3) Bonds and other securities issued and exempted from taxation by the government of 7
30	30	the United States or of this state; 8
31	31	(4) Real estate, used exclusively for military purposes, owned by chartered or incorporated 9
32	32	organizations approved by the adjutant general and composed of members of the national guard, 10
33	33	the naval militia, or the independent, chartered-military organizations; 11
34	34	(5) Buildings for free public schools, buildings for religious worship, and the land upon 12
35	35	which they stand and immediately surrounding them, to an extent not exceeding five (5) acres so 13
36	36	far as the buildings and land are occupied and used exclusively for religious or educational 14
37	37	purposes; 15
38	38	(6) Dwellings houses and the land on which they stand, not exceeding one acre in size, or 16
39	39	the minimum lot size for zone in which the dwelling house is located, whichever is the greater, 17
40	40	owned by, or held in trust for, any religious organization and actually used by its officiating clergy; 18
41	41	provided, further, that in the town of Charlestown, where the property previously described in this 19
42	42
43	43
44	44	LC002767 - Page 2 of 31
45	45	paragraph is exempt in total, along with dwelling houses and the land on which they stand in 1
46	46	Charlestown, not exceeding one acre in size, or the minimum lot size for zone in which the dwelling 2
47	47	house is located, whichever is the greater, owned by, or held in trust for, any religious organization 3
48	48	and actually used by its officiating clergy, or used as a convent, nunnery, or retreat center by its 4
49	49	religious order; 5
50	50	(7) Intangible personal property owned by, or held in trust for, any religious or charitable 6
51	51	organization, if the principal or income is used or appropriated for religious or charitable purposes; 7
52	52	(8) Buildings and personal estate owned by any corporation used for a school, academy, or 8
53	53	seminary of learning, and of any incorporated public charitable institution, and the land upon which 9
54	54	the buildings stand and immediately surrounding them to an extent not exceeding one acre, so far 10
55	55	as they are used exclusively for educational purposes, but no property or estate whatever is hereafter 11
56	56	exempt from taxation in any case where any part of its income or profits, or of the business carried 12
57	57	on there, is divided among its owners or stockholders; provided, however, that unless any private 13
58	58	nonprofit corporation organized as a college or university located in the town of Smithfield reaches 14
59	59	a memorandum of agreement with the town of Smithfield, the town of Smithfield shall bill the 15
60	60	actual costs for police, fire, and rescue services supplied, unless otherwise reimbursed, to said 16
61	61	corporation commencing March 1, 2014; 17
62	62	(9) Estates, persons, and families of the president and professors for the time being of 18
63	63	Brown University for not more than ten thousand dollars ($10,000) for each officer, the officer’s 19
64	64	estate, person, and family included, but only to the extent that any person had claimed and utilized 20
65	65	the exemption prior to, and for a period ending, either on or after December 31, 1996; 21
66	66	(10) Property especially exempt by charter unless the exemption has been waived in whole 22
67	67	or in part; provided that, notwithstanding any provision of a charter or act of incorporation or other 23
68	68	law to the contrary, any real and personal property (or portion thereof) of a healthcare facility, 24
69	69	and/or any parent corporation, operator, manager, or subsidiary thereof, or of an institution of 25
70	70	higher education, that would otherwise be exempted from property taxation that is leased to, 26
71	71	subleased to, occupied or used by an entity, organization, or individual that is not itself exempted 27
72	72	from property taxation shall be taxed to the tenant, who, for the purposes of taxation is deemed the 28
73	73	owner; 29
74	74	(11) Lots of land exclusively for burial grounds; 30
75	75	(12) Property, real and personal, held for, or by, an incorporated library, society, or any 31
76	76	free public library, or any free public library society, so far as the property is held exclusively for 32
77	77	library purposes, or for the aid or support of the aged poor, or poor friendless children, or the poor 33
78	78	generally, or for a nonprofit hospital for the sick or disabled; 34
79	79
80	80
81	81	LC002767 - Page 3 of 31
82	82	(13) Real or personal estate belonging to, or held in trust for, the benefit of incorporated 1
83	83	organizations of veterans of any war in which the United States has been engaged, the parent body 2
84	84	of which has been incorporated by act of Congress, to the extent of four hundred thousand dollars 3
85	85	($400,000) if actually used and occupied by the association; provided, that the city council of the 4
86	86	city of Cranston may by ordinance exempt the real or personal estate as previously described in 5
87	87	this subdivision located within the city of Cranston to the extent of five hundred thousand dollars 6
88	88	($500,000); 7
89	89	(14) Property, real and personal, held for, or by, the fraternal corporation, association, or 8
90	90	body created to build and maintain a building or buildings for its meetings or the meetings of the 9
91	91	general assembly of its members, or subordinate bodies of the fraternity, and for the 10
92	92	accommodation of other fraternal bodies or associations, the entire net income of which real and 11
93	93	personal property is exclusively applied or to be used to build, furnish, and maintain an asylum or 12
94	94	asylums, a home or homes, a school or schools, for the free education or relief of the members of 13
95	95	the fraternity, or the relief, support, and care of worthy and indigent members of the fraternity, their 14
96	96	wives, widows, or orphans, and any fund given or held for the purpose of public education, 15
97	97	almshouses, and the land and buildings used in connection therewith; 16
98	98	(15) Real estate and personal property of any incorporated volunteer fire engine company 17
99	99	or incorporated volunteer ambulance or rescue corps in active service; 18
100	100	(16) The estate of any person who, in the judgment of the assessors, is unable from infirmity 19
101	101	or poverty to pay the tax; provided, that in the towns of Burrillville and West Greenwich, the tax 20
102	102	shall constitute a lien for five (5) years on the property where the owner is entitled to the exemption. 21
103	103	At the expiration of five (5) years, the lien shall be abated in full. Provided, if the property is sold 22
104	104	or conveyed, or if debt secured by the property is refinanced during the five-year (5) period, the 23
105	105	lien immediately becomes due and payable; any person claiming the exemption aggrieved by an 24
106	106	adverse decision of an assessor shall appeal the decision to the local board of tax review and 25
107	107	thereafter according to the provisions of § 44-5-26; 26
108	108	(17) Household furniture and family stores of a housekeeper in the whole, including 27
109	109	clothing, bedding, and other white goods, books, and all other tangible personal property items that 28
110	110	are common to the normal household; 29
111	111	(18) Improvements made to any real property to provide a shelter and fallout protection 30
112	112	from nuclear radiation, to the amount of one thousand five hundred dollars ($1,500); provided, that 31
113	113	the improvements meet applicable standards for shelter construction established, from time to time, 32
114	114	by the Rhode Island emergency management agency. The improvements are deemed to comply 33
115	115	with the provisions of any building code or ordinance with respect to the materials or the methods 34
116	116
117	117
118	118	LC002767 - Page 4 of 31
119	119	of construction used and any shelter or its establishment is deemed to comply with the provisions 1
120	120	of any zoning code or ordinance; 2
121	121	(19) Aircraft for which the fee required by § 1-4-6 has been paid to the tax administrator; 3
122	122	(20) Manufacturer’s inventory. 4
123	123	(i) For the purposes of §§ 44-4-10, 44-5-3, 44-5-20, and 44-5-38, a person is deemed to be 5
124	124	a manufacturer within a city or town within this state if that person uses any premises, room, or 6
125	125	place in it primarily for the purpose of transforming raw materials into a finished product for trade 7
126	126	through any or all of the following operations: adapting, altering, finishing, making, and 8
127	127	ornamenting; provided, that public utilities; non-regulated power producers commencing 9
128	128	commercial operation by selling electricity at retail or taking title to generating facilities on or after 10
129	129	July 1, 1997; building and construction contractors; warehousing operations, including distribution 11
130	130	bases or outlets of out-of-state manufacturers; and fabricating processes incidental to warehousing 12
131	131	or distribution of raw materials, such as alteration of stock for the convenience of a customer; are 13
132	132	excluded from this definition; 14
133	133	(ii) For the purposes of this section and §§ 44-4-10 and 44-5-38, the term “manufacturer’s 15
134	134	inventory,” or any similar term, means and includes the manufacturer’s raw materials, the 16
135	135	manufacturer’s work in process, and finished products manufactured by the manufacturer in this 17
136	136	state, and not sold, leased, or traded by the manufacturer or its title or right to possession divested; 18
137	137	provided, that the term does not include any finished products held by the manufacturer in any retail 19
138	138	store or other similar selling place operated by the manufacturer whether or not the retail 20
139	139	establishment is located in the same building in which the manufacturer operates the manufacturing 21
140	140	plant; 22
141	141	(iii) For the purpose of § 44-11-2, a “manufacturer” is a person whose principal business 23
142	142	in this state consists of transforming raw materials into a finished product for trade through any or 24
143	143	all of the operations described in paragraph (i) of this subdivision. A person will be deemed to be 25
144	144	principally engaged if the gross receipts that person derived from the manufacturing operations in 26
145	145	this state during the calendar year or fiscal year mentioned in § 44-11-1 amounted to more than 27
146	146	fifty percent (50%) of the total gross receipts that person derived from all the business activities in 28
147	147	which that person engaged in this state during the taxable year. For the purpose of computing the 29
148	148	percentage, gross receipts derived by a manufacturer from the sale, lease, or rental of finished 30
149	149	products manufactured by the manufacturer in this state, even though the manufacturer’s store or 31
150	150	other selling place may be at a different location from the location of the manufacturer’s 32
151	151	manufacturing plant in this state, are deemed to have been derived from manufacturing; 33
152	152	(iv) Within the meaning of the preceding paragraphs of this subdivision, the term 34
153	153
154	154
155	155	LC002767 - Page 5 of 31
156	156	“manufacturer” also includes persons who are principally engaged in any of the general activities 1
157	157	coded and listed as establishments engaged in manufacturing in the Standard Industrial 2
158	158	Classification Manual prepared by the Technical Committee on Industrial Classification, Office of 3
159	159	Statistical Standards, Executive Office of the President, United States Bureau of the Budget, as 4
160	160	revised from time to time, but eliminating as manufacturers those persons, who, because of their 5
161	161	limited type of manufacturing activities, are classified in the manual as falling within the trade 6
162	162	rather than an industrial classification of manufacturers. Among those thus eliminated, and 7
163	163	accordingly also excluded as manufacturers within the meaning of this paragraph, are persons 8
164	164	primarily engaged in selling, to the general public, products produced on the premises from which 9
165	165	they are sold, such as neighborhood bakeries, candy stores, ice cream parlors, shade shops, and 10
166	166	custom tailors, except, that a person who manufactures bakery products for sale primarily for home 11
167	167	delivery, or through one or more non-baking retail outlets, and whether or not retail outlets are 12
168	168	operated by the person, is a manufacturer within the meaning of this paragraph; 13
169	169	(v) The term “Person” means and includes, as appropriate, a person, partnership, or 14
170	170	corporation; and 15
171	171	(vi) The department of revenue shall provide to the local assessors any assistance that is 16
172	172	necessary in determining the proper application of the definitions in this subdivision; 17
173	173	(21) Real and tangible personal property acquired to provide a treatment facility used 18
174	174	primarily to control the pollution or contamination of the waters or the air of the state, as defined 19
175	175	in chapter 12 of title 46 and chapter 25 of title 23, respectively, the facility having been constructed, 20
176	176	reconstructed, erected, installed, or acquired in furtherance of federal or state requirements or 21
177	177	standards for the control of water or air pollution or contamination, and certified as approved in an 22
178	178	order entered by the director of environmental management. The property is exempt as long as it is 23
179	179	operated properly in compliance with the order of approval of the director of environmental 24
180	180	management; provided, that any grant of the exemption by the director of environmental 25
181	181	management in excess of ten (10) years is approved by the city or town in which the property is 26
182	182	situated. This provision applies only to water and air pollution control properties and facilities 27
183	183	installed for the treatment of waste waters and air contaminants resulting from industrial 28
184	184	processing; furthermore, it applies only to water or air pollution control properties and facilities 29
185	185	placed in operation for the first time after April 13, 1970; 30
186	186	(22) Manufacturing machinery and equipment acquired or used by a manufacturer after 31
187	187	December 31, 1974. Manufacturing machinery and equipment is defined as: 32
188	188	(i) Machinery and equipment used exclusively in the actual manufacture or conversion of 33
189	189	raw materials or goods in the process of manufacture by a manufacturer, as defined in subdivision 34
190	190
191	191
192	192	LC002767 - Page 6 of 31
193	193	(20), and machinery, fixtures, and equipment used exclusively by a manufacturer for research and 1
194	194	development or for quality assurance of its manufactured products; 2
195	195	(ii) Machinery and equipment that is partially used in the actual manufacture or conversion 3
196	196	of raw materials or goods in process of manufacture by a manufacturer, as defined in subdivision 4
197	197	(20), and machinery, fixtures, and equipment used by a manufacturer for research and development 5
198	198	or for quality assurance of its manufactured products, to the extent to which the machinery and 6
199	199	equipment is used for the manufacturing processes, research and development, or quality assurance. 7
200	200	In the instances where machinery and equipment is used in both manufacturing and/or research and 8
201	201	development and/or quality assurance activities and non-manufacturing activities, the assessment 9
202	202	on machinery and equipment is prorated by applying the percentage of usage of the equipment for 10
203	203	the manufacturing, research and development, and quality-assurance activity to the value of the 11
204	204	machinery and equipment for purposes of taxation, and the portion of the value used for 12
205	205	manufacturing, research and development, and quality assurance is exempt from taxation. The 13
206	206	burden of demonstrating this percentage usage of machinery and equipment for manufacturing and 14
207	207	for research and development and/or quality assurance of its manufactured products rests with the 15
208	208	manufacturer; and 16
209	209	(iii) Machinery and equipment described in §§ 44-18-30(7) and 44-18-30(22) that was 17
210	210	purchased after July 1, 1997; provided that the city or town council of the city or town in which the 18
211	211	machinery and equipment is located adopts an ordinance exempting the machinery and equipment 19
212	212	from taxation. For purposes of this subsection, city councils and town councils of any municipality 20
213	213	may, by ordinance, wholly or partially exempt from taxation the machinery and equipment 21
214	214	discussed in this subsection for the period of time established in the ordinance and may, by 22
215	215	ordinance, establish the procedures for taxpayers to avail themselves of the benefit of any 23
216	216	exemption permitted under this section; provided, that the ordinance does not apply to any 24
217	217	machinery or equipment of a business, subsidiary, or any affiliated business that locates or relocates 25
218	218	from a city or town in this state to another city or town in the state; 26
219	219	(23) Precious metal bullion, meaning any elementary metal that has been put through a 27
220	220	process of melting or refining, and that is in a state or condition that its value depends upon its 28
221	221	content and not its form. The term does not include fabricated precious metal that has been 29
222	222	processed or manufactured for some one or more specific and customary industrial, professional, 30
223	223	or artistic uses; 31
224	224	(24) Hydroelectric power-generation equipment, which includes, but is not limited to, 32
225	225	turbines, generators, switchgear, controls, monitoring equipment, circuit breakers, transformers, 33
226	226	protective relaying, bus bars, cables, connections, trash racks, headgates, and conduits. The 34
227	227
228	228
229	229	LC002767 - Page 7 of 31
230	230	hydroelectric power-generation equipment must have been purchased after July 1, 1979, and 1
231	231	acquired or used by a person or corporation who or that owns or leases a dam and utilizes the 2
232	232	equipment to generate hydroelectric power; 3
233	233	(25) Subject to authorization by formal action of the council of any city or town, any real 4
234	234	or personal property owned by, held in trust for, or leased to an organization incorporated under 5
235	235	chapter 6 of title 7, as amended, or an organization meeting the definition of “charitable trust” set 6
236	236	out in § 18-9-4, as amended, or an organization incorporated under the not-for-profits statutes of 7
237	237	another state or the District of Columbia, the purpose of which is the conserving of open space, as 8
238	238	that term is defined in chapter 36 of title 45, as amended, provided the property is used exclusively 9
239	239	for the purposes of the organization; 10
240	240	(26) Tangible personal property, the primary function of which is the recycling, reuse, or 11
241	241	recovery of materials (other than precious metals, as defined in § 44-18-30(24)(ii) and (iii)), from, 12
242	242	or the treatment of “hazardous wastes,” as defined in § 23-19.1-4, where the “hazardous wastes” 13
243	243	are generated primarily by the same taxpayer and where the personal property is located at, in, or 14
244	244	adjacent to a generating facility of the taxpayer. The taxpayer may, but need not, procure an order 15
245	245	from the director of the department of environmental management certifying that the tangible 16
246	246	personal property has this function, which order effects a conclusive presumption that the tangible 17
247	247	personal property qualifies for the exemption under this subdivision. If any information relating to 18
248	248	secret processes or methods of manufacture, production, or treatment is disclosed to the department 19
249	249	of environmental management only to procure an order, and is a “trade secret” as defined in § 28-20
250	250	21-10(b), it shall not be open to public inspection or publicly disclosed unless disclosure is 21
251	251	otherwise required under chapter 21 of title 28 or chapter 24.4 of title 23; 22
252	252	(27) Motorboats as defined in § 46-22-2 for which the annual fee required in § 46-22-4 has 23
253	253	been paid; 24
254	254	(28) Real and personal property of the Providence Performing Arts Center, a non-business 25
255	255	corporation as of December 31, 1986; 26
256	256	(29) Tangible personal property owned by, and used exclusively for the purposes of, any 27
257	257	religious organization located in the city of Cranston; 28
258	258	(30) Real and personal property of the Travelers Aid Society of Rhode Island, a nonprofit 29
259	259	corporation, the Union Mall Real Estate Corporation, and any limited partnership or limited liability 30
260	260	company that is formed in connection with, or to facilitate the acquisition of, the Providence YMCA 31
261	261	Building; 32
262	262	(31) Real and personal property of Meeting Street Center or MSC Realty, Inc., both not-33
263	263	for-profit Rhode Island corporations, and any other corporation, limited partnership, or limited 34
264	264
265	265
266	266	LC002767 - Page 8 of 31
267	267	liability company that is formed in connection with, or to facilitate the acquisition of, the properties 1
268	268	designated as the Meeting Street National Center of Excellence on Eddy Street in Providence, 2
269	269	Rhode Island; 3
270	270	(32) The buildings, personal property, and land upon which the buildings stand, located on 4
271	271	Pomham Island, East Providence, currently identified as Assessor’s Map 211, Block 01, Parcel 5
272	272	001.00, that consists of approximately twenty-one thousand three hundred (21,300) square feet and 6
273	273	is located approximately eight hundred sixty feet (860′), more or less, from the shore, and limited 7
274	274	exclusively to these said buildings, personal estate and land, provided that said property is owned 8
275	275	by a qualified 501(c)(3) organization, such as the American Lighthouse Foundation, and is used 9
276	276	exclusively for a lighthouse; 10
277	277	(33) The Stadium Theatre Performing Arts Centre building located in Monument Square, 11
278	278	Woonsocket, Rhode Island, so long as said Stadium Theatre Performing Arts Center is owned by 12
279	279	the Stadium Theatre Foundation, a Rhode Island nonprofit corporation; 13
280	280	(34) Real and tangible personal property of St. Mary Academy — Bay View, located in 14
281	281	East Providence, Rhode Island; 15
282	282	(35) Real and personal property of East Bay Community Action Program and its 16
283	283	predecessor, Self Help, Inc; provided, that the organization is qualified as a tax-exempt corporation 17
284	284	under § 501(c)(3) of the United States Internal Revenue Code; 18
285	285	(36) Real and personal property located within the city of East Providence of the Columbus 19
286	286	Club of East Providence, a Rhode Island charitable nonprofit corporation; 20
287	287	(37) Real and personal property located within the city of East Providence of the Columbus 21
288	288	Club of Barrington, a Rhode Island charitable nonprofit corporation; 22
289	289	(38) Real and personal property located within the city of East Providence of Lodge 2337 23
290	290	BPO Elks, a Rhode Island nonprofit corporation; 24
291	291	(39) Real and personal property located within the city of East Providence of the St. 25
292	292	Andrews Lodge No. 39, a Rhode Island charitable nonprofit corporation; 26
293	293	(40) Real and personal property located within the city of East Providence of the Trustees 27
294	294	of Methodist Health and Welfare service a/k/a United Methodist Elder Care, a Rhode Island 28
295	295	nonprofit corporation; 29
296	296	(41) Real and personal property located on the first floor of 90 Leonard Avenue within the 30
297	297	city of East Providence of the Zion Gospel Temple, Inc., a religious nonprofit corporation; 31
298	298	(42) Real and personal property located within the city of East Providence of the Cape 32
299	299	Verdean Museum Exhibit, a Rhode Island nonprofit corporation; 33
300	300	(43) The real and personal property owned by a qualified 501(c)(3) organization that is 34
301	301
302	302
303	303	LC002767 - Page 9 of 31
304	304	affiliated and in good standing with a national, congressionally chartered organization and thereby 1
305	305	adheres to that organization’s standards and provides activities designed for recreational, 2
306	306	educational, and character building purposes for children from ages six (6) years to seventeen (17) 3
307	307	years; 4
308	308	(44) Real and personal property of the Rhode Island Philharmonic Orchestra and Music 5
309	309	School; provided, that the organization is qualified as a tax-exempt corporation under § 501(c)(3) 6
310	310	of the United States Internal Revenue Code; 7
311	311	(45) The real and personal property located within the town of West Warwick at 211 8
312	312	Cowesett Avenue, Plat 29-Lot 25, which consists of approximately twenty-eight thousand seven 9
313	313	hundred fifty (28,750) square feet and is owned by the Station Fire Memorial Foundation of East 10
314	314	Greenwich, a Rhode Island nonprofit corporation; 11
315	315	(46) Real and personal property of the Comprehensive Community Action Program, a 12
316	316	qualified tax-exempt corporation under § 501(c)(3) of the United States Internal Revenue Code; 13
317	317	(47) Real and personal property located at 52 Plain Street, within the city of Pawtucket of 14
318	318	the Pawtucket Youth Soccer Association, a Rhode Island nonprofit corporation; 15
319	319	(48) Renewable energy resources, as defined in § 39-26-5, used in residential systems and 16
320	320	associated equipment used therewith in service after December 31, 2015; 17
321	321	(49) Renewable energy resources, as defined in § 39-26-5, if employed by a manufacturer, 18
322	322	as defined in subsection (a) of this section, shall be exempt from taxation in accordance with 19
323	323	subsection (a) of this section; 20
324	324	(50) Real and personal property located at 415 Tower Hill Road within the town of North 21
325	325	Kingstown, of South County Community Action, Inc., a qualified tax-exempt corporation under § 22
326	326	501(c)(3) of the United States Internal Revenue Code; 23
327	327	(51) As an effort to promote business growth, tangible business or personal property, in 24
328	328	whole or in part, within the town of Charlestown’s community limits, subject to authorization by 25
329	329	formal action of the town council of the town of Charlestown; 26
330	330	(52) All real and personal property located at 1300 Frenchtown Road, within the town of 27
331	331	East Greenwich, identified as assessor’s map 027, plat 019, lot 071, and known as the New England 28
332	332	Wireless and Steam Museum, Inc., a qualified tax-exempt corporation under § 501(c)(3) of the 29
333	333	United States Internal Revenue Code; 30
334	334	(53) Real and tangible personal property of Mount Saint Charles Academy located within 31
335	335	the city of Woonsocket, specifically identified as the following assessor’s plats and lots: Logee 32
336	336	Street, plat 23, lot 62, Logee Street, plat 24, lots 304 and 305; Welles Street, plat 23, lot 310; 33
337	337	Monroe Street, plat 23, lot 312; and Roberge Avenue, plat 24, lot 47; 34
338	338
339	339
340	340	LC002767 - Page 10 of 31
341	341	(54) Real and tangible personal property of Steere House, a Rhode Island nonprofit 1
342	342	corporation, located in Providence, Rhode Island; 2
343	343	(55) Real and personal property located within the town of West Warwick of Tides Family 3
344	344	Services, Inc., a Rhode Island nonprofit corporation; 4
345	345	(56) Real and personal property of Tides Family Services, Inc., a Rhode Island nonprofit 5
346	346	corporation, located in the city of Pawtucket at 242 Dexter Street, plat 44, lot 444; 6
347	347	(57) Real and personal property located within the town of Middletown of Lucy’s Hearth, 7
348	348	a Rhode Island nonprofit corporation; 8
349	349	(58) Real and tangible personal property of Habitat for Humanity of Rhode Island—9
350	350	Greater Providence, Inc., a Rhode Island nonprofit corporation, located in Providence, Rhode 10
351	351	Island; 11
352	352	(59) Real and personal property of the Artic Playhouse, a Rhode Island nonprofit 12
353	353	corporation, located in the town of West Warwick at 1249 Main Street; 13
354	354	(60) Real and personal property located at 321 Main Street, within the town of South 14
355	355	Kingstown, of the Contemporary Theatre Company, a qualified, tax-exempt corporation under § 15
356	356	501(c)(3) of the United States Internal Revenue Code; 16
357	357	(61) Real and personal property of The Samaritans, Inc., a Rhode Island nonprofit § 17
358	358	501(c)(3) corporation located at 67 Park Place, Pawtucket, Rhode Island, to the extent the city 18
359	359	council of Pawtucket may from time to time determine; 19
360	360	(62) Real and personal property of North Kingstown, Exeter Animal Protection League, 20
361	361	Inc., dba “Pet Refuge,” 500 Stony Lane, a Rhode Island nonprofit corporation, located in North 21
362	362	Kingstown, Rhode Island; 22
363	363	(63) Real and personal property located within the city of East Providence of Foster 23
364	364	Forward (formerly the Rhode Island Foster Parents Association), a Rhode Island charitable 24
365	365	nonprofit corporation; 25
366	366	(64) Real and personal property located at 54 Kelly Avenue within the town of East 26
367	367	Providence, of the Associated Radio Amateurs of Southern New England, a Rhode Island nonprofit 27
368	368	corporation; 28
369	369	(65) Real and tangible personal property of Providence Country Day School, a Rhode 29
370	370	Island nonprofit corporation, located in East Providence, Rhode Island and further identified as plat 30
371	371	406, block 6, lot 6, and plat 506, block 1, lot 8; 31
372	372	(66) As an effort to promote business growth, tangible business or personal property, in 32
373	373	whole or in part, within the town of Bristol’s community limits, subject to authorization by formal 33
374	374	action of the town council of the town of Bristol; 34
375	375
376	376
377	377	LC002767 - Page 11 of 31
378	378	(67) Real and tangible personal property of the Heritage Harbor Foundation, a Rhode 1
379	379	Island nonprofit corporation, located at 1445 Wampanoag Trail, Suites 103 and 201, within the city 2
380	380	of East Providence; 3
381	381	(68) Real property of Ocean State Community Wellness, Inc., a qualified tax-exempt 4
382	382	corporation under § 501(c)(3) of the United States Internal Revenue Code, located in North 5
383	383	Kingstown, Rhode Island, with a physical address of 7450 Post Road, and further identified as plat 6
384	384	108, lot 83; 7
385	385	(69) Real and tangible personal property of St. John Baptist De La Salle Institute, d/b/a La 8
386	386	Salle Academy, a Rhode Island domestic nonprofit corporation, located in Providence, Rhode 9
387	387	Island denominated at the time this subsection was adopted as Plat 83 Lot 276 by the tax assessor 10
388	388	for the city of Providence comprising approximately 26.08 acres of land along with all buildings 11
389	389	and improvements that have been or may be made; 12
390	390	(70) Real and tangible personal property of The Providence Community Health Centers, 13
391	391	Inc., a Rhode Island domestic nonprofit corporation, located in Providence, Rhode Island; 14
392	392	(71) In the city of Central Falls and the city of Pawtucket, real property and tangible 15
393	393	personal property located on or in the premise acquired or leased by a railroad entity and for the 16
394	394	purpose of providing boarding and disembarking of railroad passengers and the supporting 17
395	395	passenger railroad operations and services. For the purpose of this section, a railroad entity shall be 18
396	396	any incorporated entity that has been duly authorized by the Rhode Island public utilities 19
397	397	commission to provide passenger railroad services; 20
398	398	(72) Real and tangible personal property of the American Legion Riverside Post Holding 21
399	399	Company, d/b/a American Legion Post 10, a Rhode Island nonprofit corporation, located at 830 22
400	400	Willet Avenue, within the city of East Providence on Map 513, Block 27, Parcel 001.00 as long as 23
401	401	said property is owned by American Legion Post 10; 24
402	402	(73) Real and tangible personal property of the Holy Rosary Band Society, a Rhode Island 25
403	403	nonprofit corporation, located at 328 Taunton Avenue, within the city of East Providence on Map 26
404	404	306, Block 01, Parcel 012.00; 27
405	405	(74) Real and tangible personal property of Foster Forward, a Rhode Island domestic 28
406	406	nonprofit corporation, located within the city of Pawtucket, at 16 North Bend Street, and further 29
407	407	identified as assessor’s plat 21, lot 312; 30
408	408	(75) Real and tangible personal property of the Old and Ancient Rowers Society of Rhode 31
409	409	Island, a Rhode Island domestic nonprofit corporation, located at 166 Walmsley Lane, within the 32
410	410	town of North Kingstown on Plat 004/Lot 019; 33
411	411	(76) Real and tangible personal property of the Rhode Island Public Health Foundation, a 34
412	412
413	413
414	414	LC002767 - Page 12 of 31
415	415	domestic nonprofit corporation or any other entity formed by the Rhode Island Public Health 1
416	416	Foundation in connection with, or to facilitate the acquisition of, one property to be owned by the 2
417	417	Rhode Island Public Health Foundation or such entity, located in the city of Providence; 3
418	418	(77) Real and tangible personal property of the Manissean Tribal Council, a Rhode Island 4
419	419	nonprofit corporation, located in the town of New Shoreham, Rhode Island; 5
420	420	(78) Real and tangible personal property of Sophia Academy located at 582 Elmwood 6
421	421	Avenue, the San Miguel Education Center located at 525 Branch Avenue, and the Community 7
422	422	Preparatory School, Inc. located at 135 Prairie Avenue, all of which are domestic nonprofit 8
423	423	corporations, and all of which are located within the city of Providence; 9
424	424	(79) Real and tangible personal property of Cape Verdean Museum Exhibit, a Rhode Island 10
425	425	domestic nonprofit corporation, located at 617 Prospect Street, within the city of Pawtucket on 11
426	426	Assessors’ Plat 37, Lot 434; 12
427	427	(80) Real and tangible personal property of Sojourner House, a Rhode Island nonprofit 13
428	428	corporation, located in the city of Providence, at 386 Smith Street, further identified as Assessor’s 14
429	429	Plat 67, Lot 46, and 1570 Westminster Street, further identified as Assessor’s Plat 35, Lot 200; 15
430	430	(81) Real and tangible personal property of the Little Flower Home, a Rhode Island 16
431	431	domestic nonprofit corporation, located at 304 Hooper Street, within the Town of Tiverton on Map 17
432	432	102, Lot 196; provided that, the organization remains a federal 501(c)(3) tax-exempt corporation 18
433	433	and a domestic nonprofit charitable corporation; 19
434	434	(82) Real and tangible personal property of the Brain Injury Association of Rhode Island, 20
435	435	Inc., a nonprofit corporation, located at 1017 Waterman Avenue within the city of East Providence 21
436	436	on tax assessor’s map 607, Block 11, Parcel 4; 22
437	437	(83) Real and tangible personal property of the Johnnycake Center Realty Corporation, a 23
438	438	Rhode Island nonprofit corporation, located in the town of South Kingstown, and further identified 24
439	439	as 12 Green Street, Assessor’s Map 49-1, Lot 148, 44 Kersey Road, further identified as Assessor’s 25
440	440	Map 49-1, Lot 136, 54 Kersey Road, further identified as Assessor’s Map 49-1, Lot 137, and 1004 26
441	441	Kingstown Road, further identified as Assessor’s Map 49-4, Lot 124; 27
442	442	(84) Real and tangible personal property of the Little Compton Game Club, a Rhode Island 28
443	443	domestic nonprofit corporation, located at 83 John Dyer Road and 88 John Dyer Road, within the 29
444	444	town of Little Compton on Assessor’s Plat 44 Lots 4 and 5; 30
445	445	(85) Real and tangible personal property of Wildlife Rehabilitators Association of Rhode 31
446	446	Island (Wildlife Clinic of Rhode Island), a Rhode Island domestic nonprofit corporation, located at 32
447	447	2865 Tower Hill Road, within the town of North Kingstown on Assessor’s Map Plat 5, Lot 1; 33
448	448	(86) Non-commercial real and tangible personal property of Southside Community Land 34
449	449
450	450
451	451	LC002767 - Page 13 of 31
452	452	Trust, a Rhode Island domestic nonprofit corporation, located in the city of Providence, at 404 1
453	453	Broad Street, further identified as Assessor's Plat 23, Lot 753; and 2
454	454	(87) Tangible personal property of Northwest Community Health Care d/b/a WellOne 3
455	455	Primary Medical and Dental Care, a Rhode Island domestic nonprofit corporation, located in the 4
456	456	town of North Scituate at 35 Village Plaza Way, and further identified as Plat 38, Lot 72. 5
457	457	(b) Except as provided below, when a city or town taxes a for-profit hospital facility, the 6
458	458	value of its real property shall be the value determined by the most recent full revaluation or 7
459	459	statistical property update performed by the city or town; provided, however, in the year a nonprofit 8
460	460	hospital facility converts to or otherwise becomes a for-profit hospital facility, or a for-profit 9
461	461	hospital facility is initially established, the value of the real property and personal property of the 10
462	462	for-profit hospital facility shall be determined by a valuation performed by the assessor for the 11
463	463	purpose of determining an initial assessed value of real and personal property, not previously taxed 12
464	464	by the city or town, as of the most recent date of assessment pursuant to § 44-5-1, subject to a right 13
465	465	of appeal by the for-profit hospital facility which shall be made to the city or town tax assessor with 14
466	466	a direct appeal from an adverse decision to the Rhode Island superior court business calendar. 15
467	467	A “for-profit hospital facility” includes all real and personal property affiliated with any 16
468	468	hospital as identified in an application filed pursuant to chapter 17 or 17.14 of title 23. 17
469	469	Notwithstanding the above, a city or town may enter into a stabilization agreement with a for-profit 18
470	470	hospital facility under § 44-3-9 or other laws specific to the particular city or town relating to 19
471	471	stabilization agreements. In a year in which a nonprofit hospital facility converts to, or otherwise 20
472	472	becomes, a for-profit hospital facility, or a for-profit hospital facility is otherwise established, in 21
473	473	that year only the amount levied by the city or town and/or the amount payable under the 22
474	474	stabilization agreement for that year related to the for-profit hospital facility shall not be counted 23
475	475	towards determining the maximum tax levy permitted under § 44-5-2. 24
476	476	(c) Notwithstanding any other provision of law to the contrary, in an effort to provide relief 25
477	477	for businesses, including small businesses, and to promote economic development, a city, town, or 26
478	478	fire district may establish an exemption for tangible personal property within its geographic limits 27
479	479	by formal action of the appropriate governing body within the city, town, or fire district, which 28
480	480	exemptions shall be uniformly applied and in compliance with local tax classification requirements. 29
481	481	Exemptions established pursuant to this subsection shall conform to the requirements of § 44-5-30
482	482	12.2. 31
483	483	SECTION 2. Section 44-18-30 of the General Laws in Chapter 44-18 entitled "Sales and 32
484	484	Use Taxes — Liability and Computation" is hereby amended to read as follows: 33
485	485	44-18-30. Gross receipts exempt from sales and use taxes. 34
486	486
487	487
488	488	LC002767 - Page 14 of 31
489	489	There are exempted from the taxes imposed by this chapter the following gross receipts: 1
490	490	(1) Sales and uses beyond constitutional power of state. From the sale and from the storage, 2
491	491	use, or other consumption in this state of tangible personal property the gross receipts from the sale 3
492	492	of which, or the storage, use, or other consumption of which, this state is prohibited from taxing 4
493	493	under the Constitution of the United States or under the constitution of this state. 5
494	494	(2) Newspapers. 6
495	495	(i) From the sale and from the storage, use, or other consumption in this state of any 7
496	496	newspaper. 8
497	497	(ii) “Newspaper” means an unbound publication printed on newsprint that contains news, 9
498	498	editorial comment, opinions, features, advertising matter, and other matters of public interest. 10
499	499	(iii) “Newspaper” does not include a magazine, handbill, circular, flyer, sales catalog, or 11
500	500	similar item unless the item is printed for, and distributed as, a part of a newspaper. 12
501	501	(3) School meals. From the sale and from the storage, use, or other consumption in this 13
502	502	state of meals served by public, private, or parochial schools, school districts, colleges, universities, 14
503	503	student organizations, and parent-teacher associations to the students or teachers of a school, 15
504	504	college, or university whether the meals are served by the educational institutions or by a food 16
505	505	service or management entity under contract to the educational institutions. 17
506	506	(4) Containers. 18
507	507	(i) From the sale and from the storage, use, or other consumption in this state of: 19
508	508	(A) Non-returnable containers, including boxes, paper bags, and wrapping materials that 20
509	509	are biodegradable and all bags and wrapping materials utilized in the medical and healing arts, 21
510	510	when sold without the contents to persons who place the contents in the container and sell the 22
511	511	contents with the container. 23
512	512	(B) Containers when sold with the contents if the sale price of the contents is not required 24
513	513	to be included in the measure of the taxes imposed by this chapter. 25
514	514	(C) Returnable containers when sold with the contents in connection with a retail sale of 26
515	515	the contents or when resold for refilling. 27
516	516	(D) Keg and barrel containers, whether returnable or not, when sold to alcoholic beverage 28
517	517	producers who place the alcoholic beverages in the containers. 29
518	518	(ii) As used in this subdivision, the term “returnable containers” means containers of a kind 30
519	519	customarily returned by the buyer of the contents for reuse. All other containers are “non-returnable 31
520	520	containers.” 32
521	521	(5)(i) Charitable, educational, and religious organizations. From the sale to, as in defined 33
522	522	in this section, and from the storage, use, and other consumption in this state, or any other state of 34
523	523
524	524
525	525	LC002767 - Page 15 of 31
526	526	the United States of America, of tangible personal property by hospitals not operated for a profit; 1
527	527	“educational institutions” as defined in subdivision (18) not operated for a profit; churches, 2
528	528	orphanages, and other institutions or organizations operated exclusively for religious or charitable 3
529	529	purposes; interest-free loan associations not operated for profit; nonprofit, organized sporting 4
530	530	leagues and associations and bands for boys and girls under the age of nineteen (19) years; the 5
531	531	following vocational student organizations that are state chapters of national vocational student 6
532	532	organizations: Distributive Education Clubs of America (DECA); Future Business Leaders of 7
533	533	America, Phi Beta Lambda (FBLA/PBL); Future Farmers of America (FFA); Future Homemakers 8
534	534	of America/Home Economics Related Occupations (FHA/HERD); Vocational Industrial Clubs of 9
535	535	America (VICA); organized nonprofit golden age and senior citizens clubs for men and women; 10
536	536	and parent-teacher associations; and from the sale, storage, use, and other consumption in this state, 11
537	537	of and by the Industrial Foundation of Burrillville, a Rhode Island domestic nonprofit corporation. 12
538	538	(ii) In the case of contracts entered into with the federal government, its agencies, or 13
539	539	instrumentalities, this state, or any other state of the United States of America, its agencies, any 14
540	540	city, town, district, or other political subdivision of the states; hospitals not operated for profit; 15
541	541	educational institutions not operated for profit; churches, orphanages, and other institutions or 16
542	542	organizations operated exclusively for religious or charitable purposes, the contractor may purchase 17
543	543	such materials and supplies (materials and/or supplies are defined as those that are essential to the 18
544	544	project) that are to be utilized in the construction of the projects being performed under the contracts 19
545	545	without payment of the tax. 20
546	546	(iii) The contractor shall not charge any sales or use tax to any exempt agency, institution, 21
547	547	or organization but shall in that instance provide his or her suppliers with certificates in the form 22
548	548	as determined by the division of taxation showing the reason for exemption and the contractor’s 23
549	549	records must substantiate the claim for exemption by showing the disposition of all property so 24
550	550	purchased. If any property is then used for a nonexempt purpose, the contractor must pay the tax 25
551	551	on the property used. 26
552	552	(6) Gasoline. From the sale and from the storage, use, or other consumption in this state of: 27
553	553	(i) Gasoline and other products taxed under chapter 36 of title 31 and (ii) Fuels used for the 28
554	554	propulsion of airplanes. 29
555	555	(7) Purchase for manufacturing purposes. 30
556	556	(i) From the sale and from the storage, use, or other consumption in this state of computer 31
557	557	software, tangible personal property, electricity, natural gas, artificial gas, steam, refrigeration, and 32
558	558	water, when the property or service is purchased for the purpose of being manufactured into a 33
559	559	finished product for resale and becomes an ingredient, component, or integral part of the 34
560	560
561	561
562	562	LC002767 - Page 16 of 31
563	563	manufactured, compounded, processed, assembled, or prepared product, or if the property or 1
564	564	service is consumed in the process of manufacturing for resale computer software, tangible personal 2
565	565	property, electricity, natural gas, artificial gas, steam, refrigeration, or water. 3
566	566	(ii) “Consumed” means destroyed, used up, or worn out to the degree or extent that the 4
567	567	property cannot be repaired, reconditioned, or rendered fit for further manufacturing use. 5
568	568	(iii) “Consumed” includes mere obsolescence. 6
569	569	(iv) “Manufacturing” means and includes: manufacturing, compounding, processing, 7
570	570	assembling, preparing, or producing. 8
571	571	(v) “Process of manufacturing” means and includes all production operations performed in 9
572	572	the producing or processing room, shop, or plant, insofar as the operations are a part of and 10
573	573	connected with the manufacturing for resale of tangible personal property, electricity, natural gas, 11
574	574	artificial gas, steam, refrigeration, or water and all production operations performed insofar as the 12
575	575	operations are a part of and connected with the manufacturing for resale of computer software. 13
576	576	(vi) “Process of manufacturing” does not mean or include administration operations such 14
577	577	as general office operations, accounting, collection, or sales promotion, nor does it mean or include 15
578	578	distribution operations that occur subsequent to production operations, such as handling, storing, 16
579	579	selling, and transporting the manufactured products, even though the administration and 17
580	580	distribution operations are performed by, or in connection with, a manufacturing business. 18
581	581	(8) State and political subdivisions. From the sale to, and from the storage, use, or other 19
582	582	consumption by, this state, any city, town, district, or other political subdivision of this state. Every 20
583	583	redevelopment agency created pursuant to chapter 31 of title 45 is deemed to be a subdivision of 21
584	584	the municipality where it is located. 22
585	585	(9) Food and food ingredients. From the sale and storage, use, or other consumption in this 23
586	586	state of food and food ingredients as defined in § 44-18-7.1(l). 24
587	587	For the purposes of this exemption “food and food ingredients” shall not include candy, 25
588	588	soft drinks, dietary supplements, alcoholic beverages, tobacco, food sold through vending 26
589	589	machines, or prepared food, as those terms are defined in § 44-18-7.1, unless the prepared food is: 27
590	590	(i) Sold by a seller whose primary NAICS classification is manufacturing in sector 311, 28
591	591	except sub-sector 3118 (bakeries); 29
592	592	(ii) Sold in an unheated state by weight or volume as a single item; 30
593	593	(iii) Bakery items, including: bread, rolls, buns, biscuits, bagels, croissants, pastries, 31
594	594	donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, tortillas; and 32
595	595	is not sold with utensils provided by the seller, including: plates, knives, forks, spoons, 33
596	596	glasses, cups, napkins, or straws. 34
597	597
598	598
599	599	LC002767 - Page 17 of 31
600	600	(10) Medicines, drugs, and durable medical equipment. From the sale and from the storage, 1
601	601	use, or other consumption in this state, of: 2
602	602	(i) “Drugs” as defined in § 44-18-7.1(h)(i), sold on prescriptions, medical oxygen, and 3
603	603	insulin whether or not sold on prescription. For purposes of this exemption drugs shall not include 4
604	604	over-the-counter drugs and grooming and hygiene products as defined in § 44-18-7.1(h)(iii). 5
605	605	(ii) Durable medical equipment as defined in § 44-18-7.1(k) for home use only, including, 6
606	606	but not limited to: syringe infusers, ambulatory drug delivery pumps, hospital beds, convalescent 7
607	607	chairs, and chair lifts. Supplies used in connection with syringe infusers and ambulatory drug 8
608	608	delivery pumps that are sold on prescription to individuals to be used by them to dispense or 9
609	609	administer prescription drugs, and related ancillary dressings and supplies used to dispense or 10
610	610	administer prescription drugs, shall also be exempt from tax. 11
611	611	(11) Prosthetic devices and mobility enhancing equipment. From the sale and from the 12
612	612	storage, use, or other consumption in this state, of prosthetic devices as defined in § 44-18-7.1(t), 13
613	613	sold on prescription, including, but not limited to: artificial limbs, dentures, spectacles, eyeglasses, 14
614	614	and artificial eyes; artificial hearing devices and hearing aids, whether or not sold on prescription; 15
615	615	and mobility enhancing equipment as defined in § 44-18-7.1(p), including wheelchairs, crutches, 16
616	616	and canes. 17
617	617	(12) Coffins, caskets, urns, shrouds and burial garments. From the sale and from the 18
618	618	storage, use, or other consumption in this state of coffins, caskets, burial containers, urns, urn liners, 19
619	619	urn vaults, grave liners, grave vaults, burial tent setups, prayer cards, shrouds, and other burial 20
620	620	garments that are ordinarily sold by a funeral director as part of the business of funeral directing. 21
621	621	(13) Motor vehicles sold to nonresidents. 22
622	622	(i) From the sale, subsequent to June 30, 1958, of a motor vehicle to a bona fide nonresident 23
623	623	of this state who does not register the motor vehicle in this state, whether the sale or delivery of the 24
624	624	motor vehicle is made in this state or at the place of residence of the nonresident. A motor vehicle 25
625	625	sold to a bona fide nonresident whose state of residence does not allow a like exemption to its 26
626	626	nonresidents is not exempt from the tax imposed under § 44-18-20. In that event, the bona fide 27
627	627	nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate that would be imposed 28
628	628	in his or her state of residence not to exceed the rate that would have been imposed under § 44-18-29
629	629	20. Notwithstanding any other provisions of law, a licensed motor vehicle dealer shall add and 30
630	630	collect the tax required under this subdivision and remit the tax to the tax administrator under the 31
631	631	provisions of chapters 18 and 19 of this title. When a Rhode Island licensed, motor vehicle dealer 32
632	632	is required to add and collect the sales and use tax on the sale of a motor vehicle to a bona fide 33
633	633	nonresident as provided in this section, the dealer in computing the tax takes into consideration the 34
634	634
635	635
636	636	LC002767 - Page 18 of 31
637	637	law of the state of the nonresident as it relates to the trade-in of motor vehicles. 1
638	638	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 2
639	639	require any licensed motor vehicle dealer to keep records of sales to bona fide nonresidents as the 3
640	640	tax administrator deems reasonably necessary to substantiate the exemption provided in this 4
641	641	subdivision, including the affidavit of a licensed motor vehicle dealer that the purchaser of the 5
642	642	motor vehicle was the holder of, and had in his or her possession a valid out-of-state motor vehicle 6
643	643	registration or a valid out-of-state driver’s license. 7
644	644	(iii) Any nonresident who registers a motor vehicle in this state within ninety (90) days of 8
645	645	the date of its sale to him or her is deemed to have purchased the motor vehicle for use, storage, or 9
646	646	other consumption in this state, and is subject to, and liable for, the use tax imposed under the 10
647	647	provisions of § 44-18-20. 11
648	648	(14) Sales in public buildings by blind people. From the sale and from the storage, use, or 12
649	649	other consumption in all public buildings in this state of all products or wares by any person 13
650	650	licensed under § 40-9-11.1. 14
651	651	(15) Air and water pollution control facilities. From the sale, storage, use, or other 15
652	652	consumption in this state of tangible personal property or supplies acquired for incorporation into 16
653	653	or used and consumed in the operation of a facility, the primary purpose of which is to aid in the 17
654	654	control of the pollution or contamination of the waters or air of the state, as defined in chapter 12 18
655	655	of title 46 and chapter 23 of title 23, respectively, and that has been certified as approved for that 19
656	656	purpose by the director of environmental management. The director of environmental management 20
657	657	may certify to a portion of the tangible personal property or supplies acquired for incorporation 21
658	658	into those facilities or used and consumed in the operation of those facilities to the extent that that 22
659	659	portion has as its primary purpose the control of the pollution or contamination of the waters or air 23
660	660	of this state. As used in this subdivision, “facility” means any land, facility, device, building, 24
661	661	machinery, or equipment. 25
662	662	(16) Camps. From the rental charged for living quarters, or sleeping, or housekeeping 26
663	663	accommodations at camps or retreat houses operated by religious, charitable, educational, or other 27
664	664	organizations and associations mentioned in subsection (5), or by privately owned and operated 28
665	665	summer camps for children. 29
666	666	(17) Certain institutions. From the rental charged for living or sleeping quarters in an 30
667	667	institution licensed by the state for the hospitalization, custodial, or nursing care of human beings. 31
668	668	(18) Educational institutions. From the rental charged by any educational institution for 32
669	669	living quarters, or sleeping, or housekeeping accommodations or other rooms or accommodations 33
670	670	to any student or teacher necessitated by attendance at an educational institution. “Educational 34
671	671
672	672
673	673	LC002767 - Page 19 of 31
674	674	institution” as used in this section means an institution of learning not operated for profit that is 1
675	675	empowered to confer diplomas, educational, literary, or academic degrees; that has a regular 2
676	676	faculty, curriculum, and organized body of pupils or students in attendance throughout the usual 3
677	677	school year; that keeps and furnishes to students and others records required and accepted for 4
678	678	entrance to schools of secondary, collegiate, or graduate rank; and no part of the net earnings of 5
679	679	which inures to the benefit of any individual. 6
680	680	(19) Motor vehicle and adaptive equipment for persons with disabilities. 7
681	681	(i) From the sale of: (A) Special adaptations; (B) The component parts of the special 8
682	682	adaptations; or (C) A specially adapted motor vehicle; provided that the owner furnishes to the tax 9
683	683	administrator an affidavit of a licensed physician to the effect that the specially adapted motor 10
684	684	vehicle is necessary to transport a family member with a disability or where the vehicle has been 11
685	685	specially adapted to meet the specific needs of the person with a disability. This exemption applies 12
686	686	to not more than one motor vehicle owned and registered for personal, noncommercial use. 13
687	687	(ii) For the purpose of this subsection the term “special adaptations” includes, but is not 14
688	688	limited to: wheelchair lifts, wheelchair carriers, wheelchair ramps, wheelchair securements, hand 15
689	689	controls, steering devices, extensions, relocations, and crossovers of operator controls, power-16
690	690	assisted controls, raised tops or dropped floors, raised entry doors, or alternative signaling devices 17
691	691	to auditory signals. 18
692	692	(iii) From the sale of: (a) Special adaptations, (b) The component parts of the special 19
693	693	adaptations, for a “wheelchair accessible taxicab” as defined in § 39-14-1, and/or a “wheelchair 20
694	694	accessible public motor vehicle” as defined in § 39-14.1-1. 21
695	695	(iv) For the purpose of this subdivision the exemption for a “specially adapted motor 22
696	696	vehicle” means a use tax credit not to exceed the amount of use tax that would otherwise be due on 23
697	697	the motor vehicle, exclusive of any adaptations. The use tax credit is equal to the cost of the special 24
698	698	adaptations, including installation. 25
699	699	(20) Heating fuels. From the sale and from the storage, use, or other consumption in this 26
700	700	state of every type of heating fuel. 27
701	701	(21) Electricity and gas. From the sale and from the storage, use, or other consumption in 28
702	702	this state of electricity and gas. 29
703	703	(22) Manufacturing machinery and equipment. 30
704	704	(i) From the sale and from the storage, use, or other consumption in this state of tools, dies, 31
705	705	molds, machinery, equipment (including replacement parts), and related items to the extent used in 32
706	706	an industrial plant in connection with the actual manufacture, conversion, or processing of tangible 33
707	707	personal property, or to the extent used in connection with the actual manufacture, conversion, or 34
708	708
709	709
710	710	LC002767 - Page 20 of 31
711	711	processing of computer software as that term is utilized in industry numbers 7371, 7372, and 7373 1
712	712	in the standard industrial classification manual prepared by the Technical Committee on Industrial 2
713	713	Classification, Office of Statistical Standards, Executive Office of the President, United States 3
714	714	Bureau of the Budget, as revised from time to time, to be sold, or that machinery and equipment 4
715	715	used in the furnishing of power to an industrial manufacturing plant. For the purposes of this 5
716	716	subdivision, “industrial plant” means a factory at a fixed location primarily engaged in the 6
717	717	manufacture, conversion, or processing of tangible personal property to be sold in the regular 7
718	718	course of business; 8
719	719	(ii) Machinery and equipment and related items are not deemed to be used in connection 9
720	720	with the actual manufacture, conversion, or processing of tangible personal property, or in 10
721	721	connection with the actual manufacture, conversion, or processing of computer software as that 11
722	722	term is utilized in industry numbers 7371, 7372, and 7373 in the standard industrial classification 12
723	723	manual prepared by the Technical Committee on Industrial Classification, Office of Statistical 13
724	724	Standards, Executive Office of the President, United States Bureau of the Budget, as revised from 14
725	725	time to time, to be sold to the extent the property is used in administration or distribution operations; 15
726	726	(iii) Machinery and equipment and related items used in connection with the actual 16
727	727	manufacture, conversion, or processing of any computer software or any tangible personal property 17
728	728	that is not to be sold and that would be exempt under subdivision (7) or this subdivision if purchased 18
729	729	from a vendor or machinery and equipment and related items used during any manufacturing, 19
730	730	converting, or processing function is exempt under this subdivision even if that operation, function, 20
731	731	or purpose is not an integral or essential part of a continuous production flow or manufacturing 21
732	732	process; 22
733	733	(iv) Where a portion of a group of portable or mobile machinery is used in connection with 23
734	734	the actual manufacture, conversion, or processing of computer software or tangible personal 24
735	735	property to be sold, as previously defined, that portion, if otherwise qualifying, is exempt under 25
736	736	this subdivision even though the machinery in that group is used interchangeably and not otherwise 26
737	737	identifiable as to use. 27
738	738	(23) Trade-in value of motor vehicles. From the sale and from the storage, use, or other 28
739	739	consumption in this state of so much of the purchase price paid for a new or used automobile as is 29
740	740	allocated for a trade-in allowance on the automobile of the buyer given in trade to the seller, or of 30
741	741	the proceeds applicable only to the automobile as are received from the manufacturer of 31
742	742	automobiles for the repurchase of the automobile whether the repurchase was voluntary or not 32
743	743	towards the purchase of a new or used automobile by the buyer. For the purpose of this subdivision, 33
744	744	the word “automobile” means a private passenger automobile not used for hire and does not refer 34
745	745
746	746
747	747	LC002767 - Page 21 of 31
748	748	to any other type of motor vehicle. 1
749	749	(24) Precious metal bullion. 2
750	750	(i) From the sale and from the storage, use, or other consumption in this state of precious 3
751	751	metal bullion, substantially equivalent to a transaction in securities or commodities. 4
752	752	(ii) For purposes of this subdivision, “precious metal bullion” means any elementary 5
753	753	precious metal that has been put through a process of smelting or refining, including, but not limited 6
754	754	to: gold, silver, platinum, rhodium, and chromium, and that is in a state or condition that its value 7
755	755	depends upon its content and not upon its form. 8
756	756	(iii) The term does not include fabricated precious metal that has been processed or 9
757	757	manufactured for some one or more specific and customary industrial, professional, or artistic uses. 10
758	758	(25) Commercial vessels. From sales made to a commercial ship, barge, or other vessel of 11
759	759	fifty (50) tons burden or over, primarily engaged in interstate or foreign commerce, and from the 12
760	760	repair, alteration, or conversion of the vessels, and from the sale of property purchased for the use 13
761	761	of the vessels including provisions, supplies, and material for the maintenance and/or repair of the 14
762	762	vessels. 15
763	763	(26) Commercial fishing vessels. From the sale and from the storage, use, or other 16
764	764	consumption in this state of vessels and other watercraft that are in excess of five (5) net tons and 17
765	765	that are used exclusively for “commercial fishing,” as defined in this subdivision, and from the 18
766	766	repair, alteration, or conversion of those vessels and other watercraft, and from the sale of property 19
767	767	purchased for the use of those vessels and other watercraft including provisions, supplies, and 20
768	768	material for the maintenance and/or repair of the vessels and other watercraft and the boats nets, 21
769	769	cables, tackle, and other fishing equipment appurtenant to or used in connection with the 22
770	770	commercial fishing of the vessels and other watercraft. “Commercial fishing” means taking or 23
771	771	attempting to take any fish, shellfish, crustacea, or bait species with the intent of disposing of it for 24
772	772	profit or by sale, barter, trade, or in commercial channels. The term does not include subsistence 25
773	773	fishing, i.e., the taking for personal use and not for sale or barter; or sport fishing; but shall include 26
774	774	vessels and other watercraft with a Rhode Island party and charter boat license issued by the 27
775	775	department of environmental management pursuant to § 20-2-27.1 that meet the following criteria: 28
776	776	(i) The operator must have a current United States Coast Guard (U.S.C.G.) license to carry 29
777	777	passengers for hire; (ii) U.S.C.G. vessel documentation in the coast wide fishery trade; (iii) 30
778	778	U.S.C.G. vessel documentation as to proof of Rhode Island home port status or a Rhode Island boat 31
779	779	registration to prove Rhode Island home port status; and (iv) The vessel must be used as a 32
780	780	commercial passenger carrying fishing vessel to carry passengers for fishing. The vessel must be 33
781	781	able to demonstrate that at least fifty percent (50%) of its annual gross income derives from charters 34
782	782
783	783
784	784	LC002767 - Page 22 of 31
785	785	or provides documentation of a minimum of one hundred (100) charter trips annually; and (v) The 1
786	786	vessel must have a valid Rhode Island party and charter boat license. The tax administrator shall 2
787	787	implement the provisions of this subdivision by promulgating rules and regulations relating thereto. 3
788	788	(27) Clothing and footwear. From the sales of articles of clothing, including footwear, 4
789	789	intended to be worn or carried on or about the human body for sales prior to October 1, 2012. 5
790	790	Effective October 1, 2012, the exemption will apply to the sales of articles of clothing, including 6
791	791	footwear, intended to be worn or carried on or about the human body up to two hundred and fifty 7
792	792	dollars ($250) of the sales price per item. For the purposes of this section, “clothing or footwear” 8
793	793	does not include clothing accessories or equipment or special clothing or footwear primarily 9
794	794	designed for athletic activity or protective use as these terms are defined in § 44-18-7.1(f). In 10
795	795	recognition of the work being performed by the streamlined sales and use tax governing board, 11
796	796	upon passage of any federal law that authorizes states to require remote sellers to collect and remit 12
797	797	sales and use taxes, this unlimited exemption will apply as it did prior to October 1, 2012. The 13
798	798	unlimited exemption on sales of clothing and footwear shall take effect on the date that the state 14
799	799	requires remote sellers to collect and remit sales and use taxes. 15
800	800	(28) Water for residential use. From the sale and from the storage, use, or other 16
801	801	consumption in this state of water furnished for domestic use by occupants of residential premises. 17
802	802	(29) Bibles. [Unconstitutional; see Ahlburn v. Clark, 728 A.2d 449 (R.I. 1999); see Notes 18
803	803	to Decisions.] From the sale and from the storage, use, or other consumption in the state of any 19
804	804	canonized scriptures of any tax-exempt nonprofit religious organization including, but not limited 20
805	805	to, the Old Testament and the New Testament versions. 21
806	806	(30) Boats. 22
807	807	(i) From the sale of a boat or vessel to a bona fide nonresident of this state who does not 23
808	808	register the boat or vessel in this state or document the boat or vessel with the United States 24
809	809	government at a home port within the state, whether the sale or delivery of the boat or vessel is 25
810	810	made in this state or elsewhere; provided, that the nonresident transports the boat within thirty (30) 26
811	811	days after delivery by the seller outside the state for use thereafter solely outside the state. 27
812	812	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 28
813	813	require the seller of the boat or vessel to keep records of the sales to bona fide nonresidents as the 29
814	814	tax administrator deems reasonably necessary to substantiate the exemption provided in this 30
815	815	subdivision, including the affidavit of the seller that the buyer represented himself or herself to be 31
816	816	a bona fide nonresident of this state and of the buyer that he or she is a nonresident of this state. 32
817	817	(31) Youth activities equipment. From the sale, storage, use, or other consumption in this 33
818	818	state of items for not more than twenty dollars ($20.00) each by nonprofit Rhode Island 34
819	819
820	820
821	821	LC002767 - Page 23 of 31
822	822	eleemosynary organizations, for the purposes of youth activities that the organization is formed to 1
823	823	sponsor and support; and by accredited elementary and secondary schools for the purposes of the 2
824	824	schools or of organized activities of the enrolled students. 3
825	825	(32) Farm equipment. From the sale and from the storage or use of machinery and 4
826	826	equipment used directly for commercial farming and agricultural production; including, but not 5
827	827	limited to: tractors, ploughs, harrows, spreaders, seeders, milking machines, silage conveyors, 6
828	828	balers, bulk milk storage tanks, trucks with farm plates, mowers, combines, irrigation equipment, 7
829	829	greenhouses and greenhouse coverings, graders and packaging machines, tools and supplies and 8
830	830	other farming equipment, including replacement parts appurtenant to or used in connection with 9
831	831	commercial farming and tools and supplies used in the repair and maintenance of farming 10
832	832	equipment. “Commercial farming” means the keeping or boarding of five (5) or more horses or the 11
833	833	production within this state of agricultural products, including, but not limited to, field or orchard 12
834	834	crops, livestock, dairy, and poultry, or their products, where the keeping, boarding, or production 13
835	835	provides at least two thousand five hundred dollars ($2,500) in annual gross sales to the operator, 14
836	836	whether an individual, a group, a partnership, or a corporation for exemptions issued prior to July 15
837	837	1, 2002. For exemptions issued or renewed after July 1, 2002, there shall be two (2) levels. Level I 16
838	838	shall be based on proof of annual, gross sales from commercial farming of at least twenty-five 17
839	839	hundred dollars ($2,500) and shall be valid for purchases subject to the exemption provided in this 18
840	840	subdivision except for motor vehicles with an excise tax value of five thousand dollars ($5,000) or 19
841	841	greater. Level II shall be based on proof of annual gross sales from commercial farming of at least 20
842	842	ten thousand dollars ($10,000) or greater and shall be valid for purchases subject to the exemption 21
843	843	provided in this subdivision including motor vehicles with an excise tax value of five thousand 22
844	844	dollars ($5,000) or greater. For the initial issuance of the exemptions, proof of the requisite amount 23
845	845	of annual gross sales from commercial farming shall be required for the prior year; for any renewal 24
846	846	of an exemption granted in accordance with this subdivision at either level I or level II, proof of 25
847	847	gross annual sales from commercial farming at the requisite amount shall be required for each of 26
848	848	the prior two (2) years. Certificates of exemption issued or renewed after July 1, 2002, shall clearly 27
849	849	indicate the level of the exemption and be valid for four (4) years after the date of issue. This 28
850	850	exemption applies even if the same equipment is used for ancillary uses, or is temporarily used for 29
851	851	a non-farming or a non-agricultural purpose, but shall not apply to motor vehicles acquired after 30
852	852	July 1, 2002, unless the vehicle is a farm vehicle as defined pursuant to § 31-1-8 and is eligible for 31
853	853	registration displaying farm plates as provided for in § 31-3-31. 32
854	854	(33) Compressed air. From the sale and from the storage, use, or other consumption in the 33
855	855	state of compressed air. 34
856	856
857	857
858	858	LC002767 - Page 24 of 31
859	859	(34) Flags. From the sale and from the storage, consumption, or other use in this state of 1
860	860	United States, Rhode Island or POW-MIA flags. 2
861	861	(35) Motor vehicle and adaptive equipment to certain veterans. From the sale of a motor 3
862	862	vehicle and adaptive equipment to and for the use of a veteran with a service-connected loss of or 4
863	863	the loss of use of a leg, foot, hand, or arm, or any veteran who is a double amputee, whether service 5
864	864	connected or not. The motor vehicle must be purchased by and especially equipped for use by the 6
865	865	qualifying veteran. Certificate of exemption or refunds of taxes paid is granted under rules or 7
866	866	regulations that the tax administrator may prescribe. 8
867	867	(36) Textbooks. From the sale and from the storage, use, or other consumption in this state 9
868	868	of textbooks by an “educational institution,” as defined in subsection (18) of this section, and any 10
869	869	educational institution within the purview of § 16-63-9(4), and used textbooks by any purveyor. 11
870	870	(37) Tangible personal property and supplies used in on-site hazardous waste recycling, 12
871	871	reuse, or treatment. From the sale, storage, use, or other consumption in this state of tangible 13
872	872	personal property or supplies used or consumed in the operation of equipment, the exclusive 14
873	873	function of which is the recycling, reuse, or recovery of materials (other than precious metals, as 15
874	874	defined in subdivision (24)(ii) of this section) from the treatment of “hazardous wastes,” as defined 16
875	875	in § 23-19.1-4, where the “hazardous wastes” are generated in Rhode Island solely by the same 17
876	876	taxpayer and where the personal property is located at, in, or adjacent to a generating facility of the 18
877	877	taxpayer in Rhode Island. The taxpayer shall procure an order from the director of the department 19
878	878	of environmental management certifying that the equipment and/or supplies as used or consumed, 20
879	879	qualify for the exemption under this subdivision. If any information relating to secret processes or 21
880	880	methods of manufacture, production, or treatment is disclosed to the department of environmental 22
881	881	management only to procure an order, and is a “trade secret” as defined in § 28-21-10(b), it is not 23
882	882	open to public inspection or publicly disclosed unless disclosure is required under chapter 21 of 24
883	883	title 28 or chapter 24.4 of title 23. 25
884	884	(38) Promotional and product literature of boat manufacturers. From the sale and from the 26
885	885	storage, use, or other consumption of promotional and product literature of boat manufacturers 27
886	886	shipped to points outside of Rhode Island that either: (i) Accompany the product that is sold; (ii) 28
887	887	Are shipped in bulk to out-of-state dealers for use in the sale of the product; or (iii) Are mailed to 29
888	888	customers at no charge. 30
889	889	(39) Food items paid for by food stamps. From the sale and from the storage, use, or other 31
890	890	consumption in this state of eligible food items payment for which is properly made to the retailer 32
891	891	in the form of U.S. government food stamps issued in accordance with the Food Stamp Act of 1977, 33
892	892	7 U.S.C. § 2011 et seq. 34
893	893
894	894
895	895	LC002767 - Page 25 of 31
896	896	(40) Transportation charges. From the sale or hiring of motor carriers as defined in § 39-1
897	897	12-2(12) to haul goods, when the contract or hiring cost is charged by a motor freight tariff filed 2
898	898	with the Rhode Island public utilities commission on the number of miles driven or by the number 3
899	899	of hours spent on the job. 4
900	900	(41) Trade-in value of boats. From the sale and from the storage, use, or other consumption 5
901	901	in this state of so much of the purchase price paid for a new or used boat as is allocated for a trade-6
902	902	in allowance on the boat of the buyer given in trade to the seller or of the proceeds applicable only 7
903	903	to the boat as are received from an insurance claim as a result of a stolen or damaged boat, towards 8
904	904	the purchase of a new or used boat by the buyer. 9
905	905	(42) Equipment used for research and development. From the sale and from the storage, 10
906	906	use, or other consumption of equipment to the extent used for research and development purposes 11
907	907	by a qualifying firm. For the purposes of this subsection, “qualifying firm” means a business for 12
908	908	which the use of research and development equipment is an integral part of its operation and 13
909	909	“equipment” means scientific equipment, computers, software, and related items. 14
910	910	(43) Coins. From the sale and from the other consumption in this state of coins having 15
911	911	numismatic or investment value. 16
912	912	(44) Farm structure construction materials. Lumber, hardware, and other materials used in 17
913	913	the new construction of farm structures, including production facilities such as, but not limited to: 18
914	914	farrowing sheds, free stall and stanchion barns, milking parlors, silos, poultry barns, laying houses, 19
915	915	fruit and vegetable storages, rooting cellars, propagation rooms, greenhouses, packing rooms, 20
916	916	machinery storage, seasonal farm worker housing, certified farm markets, bunker and trench silos, 21
917	917	feed storage sheds, and any other structures used in connection with commercial farming. 22
918	918	(45) Telecommunications carrier access service. Carrier access service or 23
919	919	telecommunications service when purchased by a telecommunications company from another 24
920	920	telecommunications company to facilitate the provision of telecommunications service. 25
921	921	(46) Boats or vessels brought into the state exclusively for winter storage, maintenance, 26
922	922	repair, or sale. Notwithstanding the provisions of §§ 44-18-10, 44-18-11 and 44-18-20, the tax 27
923	923	imposed by § 44-18-20 is not applicable for the period commencing on the first day of October in 28
924	924	any year up to and including the 30th day of April next succeeding with respect to the use of any 29
925	925	boat or vessel within this state exclusively for purposes of: (i) Delivery of the vessel to a facility in 30
926	926	this state for storage, including dry storage and storage in water by means of apparatus preventing 31
927	927	ice damage to the hull, maintenance, or repair; (ii) The actual process of storage, maintenance, or 32
928	928	repair of the boat or vessel; or (iii) Storage for the purpose of selling the boat or vessel. 33
929	929	(47) Jewelry display product. From the sale and from the storage, use, or other consumption 34
930	930
931	931
932	932	LC002767 - Page 26 of 31
933	933	in this state of tangible personal property used to display any jewelry product; provided that title to 1
934	934	the jewelry display product is transferred by the jewelry manufacturer or seller and that the jewelry 2
935	935	display product is shipped out of state for use solely outside the state and is not returned to the 3
936	936	jewelry manufacturer or seller. 4
937	937	(48) Boats or vessels generally. Notwithstanding the provisions of this chapter, the tax 5
938	938	imposed by §§ 44-18-20 and 44-18-18 shall not apply with respect to the sale and to the storage, 6
939	939	use, or other consumption in this state of any new or used boat. The exemption provided for in this 7
940	940	subdivision does not apply after October 1, 1993, unless prior to October 1, 1993, the federal ten 8
941	941	percent (10%) surcharge on luxury boats is repealed. 9
942	942	(49) Banks and regulated investment companies interstate toll-free calls. Notwithstanding 10
943	943	the provisions of this chapter, the tax imposed by this chapter does not apply to the furnishing of 11
944	944	interstate and international, toll-free terminating telecommunication service that is used directly 12
945	945	and exclusively by or for the benefit of an eligible company as defined in this subdivision; provided 13
946	946	that an eligible company employs on average during the calendar year no less than five hundred 14
947	947	(500) “full-time equivalent employees” as that term is defined in § 42-64.5-2. For purposes of this 15
948	948	section, an “eligible company” means a “regulated investment company” as that term is defined in 16
949	949	the Internal Revenue Code of 1986, 26 U.S.C. § 851, or a corporation to the extent the service is 17
950	950	provided, directly or indirectly, to or on behalf of a regulated investment company, an employee 18
951	951	benefit plan, a retirement plan or a pension plan, or a state-chartered bank. 19
952	952	(50) Mobile and manufactured homes generally. From the sale and from the storage, use, 20
953	953	or other consumption in this state of mobile and/or manufactured homes as defined and subject to 21
954	954	taxation pursuant to the provisions of chapter 44 of title 31. 22
955	955	(51) Manufacturing business reconstruction materials. 23
956	956	(i) From the sale and from the storage, use, or other consumption in this state of lumber, 24
957	957	hardware, and other building materials used in the reconstruction of a manufacturing business 25
958	958	facility that suffers a disaster, as defined in this subdivision, in this state. “Disaster” means any 26
959	959	occurrence, natural or otherwise, that results in the destruction of sixty percent (60%) or more of 27
960	960	an operating manufacturing business facility within this state. “Disaster” does not include any 28
961	961	damage resulting from the willful act of the owner of the manufacturing business facility. 29
962	962	(ii) Manufacturing business facility includes, but is not limited to, the structures housing 30
963	963	the production and administrative facilities. 31
964	964	(iii) In the event a manufacturer has more than one manufacturing site in this state, the sixty 32
965	965	percent (60%) provision applies to the damages suffered at that one site. 33
966	966	(iv) To the extent that the costs of the reconstruction materials are reimbursed by insurance, 34
967	967
968	968
969	969	LC002767 - Page 27 of 31
970	970	this exemption does not apply. 1
971	971	(52) Tangible personal property and supplies used in the processing or preparation of floral 2
972	972	products and floral arrangements. From the sale, storage, use, or other consumption in this state of 3
973	973	tangible personal property or supplies purchased by florists, garden centers, or other like producers 4
974	974	or vendors of flowers, plants, floral products, and natural and artificial floral arrangements that are 5
975	975	ultimately sold with flowers, plants, floral products, and natural and artificial floral arrangements 6
976	976	or are otherwise used in the decoration, fabrication, creation, processing, or preparation of flowers, 7
977	977	plants, floral products, or natural and artificial floral arrangements, including descriptive labels, 8
978	978	stickers, and cards affixed to the flower, plant, floral product, or arrangement, artificial flowers, 9
979	979	spray materials, floral paint and tint, plant shine, flower food, insecticide, and fertilizers. 10
980	980	(53) Horse food products. From the sale and from the storage, use, or other consumption 11
981	981	in this state of horse food products purchased by a person engaged in the business of the boarding 12
982	982	of horses. 13
983	983	(54) Non-motorized recreational vehicles sold to nonresidents. 14
984	984	(i) From the sale, subsequent to June 30, 2003, of a non-motorized recreational vehicle to 15
985	985	a bona fide nonresident of this state who does not register the non-motorized recreational vehicle 16
986	986	in this state, whether the sale or delivery of the non-motorized recreational vehicle is made in this 17
987	987	state or at the place of residence of the nonresident; provided that a non-motorized recreational 18
988	988	vehicle sold to a bona fide nonresident whose state of residence does not allow a like exemption to 19
989	989	its nonresidents is not exempt from the tax imposed under § 44-18-20; provided, further, that in 20
990	990	that event the bona fide nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate 21
991	991	that would be imposed in his or her state of residence not to exceed the rate that would have been 22
992	992	imposed under § 44-18-20. Notwithstanding any other provisions of law, a licensed, non-motorized 23
993	993	recreational vehicle dealer shall add and collect the tax required under this subdivision and remit 24
994	994	the tax to the tax administrator under the provisions of chapters 18 and 19 of this title. Provided, 25
995	995	that when a Rhode Island licensed, non-motorized recreational vehicle dealer is required to add and 26
996	996	collect the sales and use tax on the sale of a non-motorized recreational vehicle to a bona fide 27
997	997	nonresident as provided in this section, the dealer in computing the tax takes into consideration the 28
998	998	law of the state of the nonresident as it relates to the trade-in of motor vehicles. 29
999	999	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 30
1000	1000	require any licensed, non-motorized recreational vehicle dealer to keep records of sales to bona fide 31
1001	1001	nonresidents as the tax administrator deems reasonably necessary to substantiate the exemption 32
1002	1002	provided in this subdivision, including the affidavit of a licensed, non-motorized recreational 33
1003	1003	vehicle dealer that the purchaser of the non-motorized recreational vehicle was the holder of, and 34
1004	1004
1005	1005
1006	1006	LC002767 - Page 28 of 31
1007	1007	had in his or her possession a valid out-of-state non-motorized recreational vehicle registration or 1
1008	1008	a valid out-of-state driver’s license. 2
1009	1009	(iii) Any nonresident who registers a non-motorized recreational vehicle in this state within 3
1010	1010	ninety (90) days of the date of its sale to him or her is deemed to have purchased the non-motorized 4
1011	1011	recreational vehicle for use, storage, or other consumption in this state, and is subject to, and liable 5
1012	1012	for, the use tax imposed under the provisions of § 44-18-20. 6
1013	1013	(iv) “Non-motorized recreational vehicle” means any portable dwelling designed and 7
1014	1014	constructed to be used as a temporary dwelling for travel, camping, recreational, and vacation use 8
1015	1015	that is eligible to be registered for highway use, including, but not limited to, “pick-up coaches” or 9
1016	1016	“pick-up campers,” “travel trailers,” and “tent trailers” as those terms are defined in chapter 1 of 10
1017	1017	title 31. 11
1018	1018	(55) Sprinkler and fire alarm systems in existing buildings. From the sale in this state of 12
1019	1019	sprinkler and fire alarm systems; emergency lighting and alarm systems; and the materials 13
1020	1020	necessary and attendant to the installation of those systems that are required in buildings and 14
1021	1021	occupancies existing therein in July 2003 in order to comply with any additional requirements for 15
1022	1022	such buildings arising directly from the enactment of the Comprehensive Fire Safety Act of 2003 16
1023	1023	and that are not required by any other provision of law or ordinance or regulation adopted pursuant 17
1024	1024	to that act. The exemption provided in this subdivision shall expire on December 31, 2008. 18
1025	1025	(56) Aircraft. Notwithstanding the provisions of this chapter, the tax imposed by §§ 44-18-19
1026	1026	18 and 44-18-20 shall not apply with respect to the sale and to the storage, use, or other consumption 20
1027	1027	in this state of any new or used aircraft or aircraft parts. 21
1028	1028	(57) Renewable energy products. Notwithstanding any other provisions of Rhode Island 22
1029	1029	general laws, the following products shall also be exempt from sales tax: solar photovoltaic 23
1030	1030	modules or panels, or any module or panel that generates electricity from light; solar thermal 24
1031	1031	collectors, including, but not limited to, those manufactured with flat glass plates, extruded plastic, 25
1032	1032	sheet metal, and/or evacuated tubes; geothermal heat pumps, including both water-to-water and 26
1033	1033	water-to-air type pumps; wind turbines; towers used to mount wind turbines if specified by or sold 27
1034	1034	by a wind turbine manufacturer; DC to AC inverters that interconnect with utility power lines; and 28
1035	1035	manufactured mounting racks and ballast pans for solar collector, module, or panel installation. Not 29
1036	1036	to include materials that could be fabricated into such racks; monitoring and control equipment, if 30
1037	1037	specified or supplied by a manufacturer of solar thermal, solar photovoltaic, geothermal, or wind 31
1038	1038	energy systems or if required by law or regulation for such systems but not to include pumps, fans 32
1039	1039	or plumbing or electrical fixtures unless shipped from the manufacturer affixed to, or an integral 33
1040	1040	part of, another item specified on this list; and solar storage tanks that are part of a solar domestic 34
1041	1041
1042	1042
1043	1043	LC002767 - Page 29 of 31
1044	1044	hot water system or a solar space heating system. If the tank comes with an external heat exchanger 1
1045	1045	it shall also be tax exempt, but a standard hot water tank is not exempt from state sales tax. 2
1046	1046	(58) Returned property. The amount charged for property returned by customers upon 3
1047	1047	rescission of the contract of sale when the entire amount exclusive of handling charges paid for the 4
1048	1048	property is refunded in either cash or credit, and where the property is returned within one hundred 5
1049	1049	twenty (120) days from the date of delivery. 6
1050	1050	(59) Dietary supplements. From the sale and from the storage, use, or other consumption 7
1051	1051	of dietary supplements as defined in § 44-18-7.1(l)(v), sold on prescriptions. 8
1052	1052	(60) Blood. From the sale and from the storage, use, or other consumption of human blood. 9
1053	1053	(61) Agricultural products for human consumption. From the sale and from the storage, 10
1054	1054	use, or other consumption of livestock and poultry of the kinds of products that ordinarily constitute 11
1055	1055	food for human consumption and of livestock of the kind the products of which ordinarily constitute 12
1056	1056	fibers for human use. 13
1057	1057	(62) Diesel emission control technology. From the sale and use of diesel retrofit technology 14
1058	1058	that is required by § 31-47.3-4. 15
1059	1059	(63) Feed for certain animals used in commercial farming. From the sale of feed for animals 16
1060	1060	as described in subsection (61) of this section. 17
1061	1061	(64) Alcoholic beverages. From the sale and storage, use, or other consumption in this state 18
1062	1062	by a Class A licensee of alcoholic beverages, as defined in § 44-18-7.1, excluding beer and malt 19
1063	1063	beverages; provided, further, notwithstanding § 6-13-1 or any other general or public law to the 20
1064	1064	contrary, alcoholic beverages, as defined in § 44-18-7.1, shall not be subject to minimum markup. 21
1065	1065	(65) Seeds and plants used to grow food and food ingredients. From the sale, storage, use, 22
1066	1066	or other consumption in this state of seeds and plants used to grow food and food ingredients as 23
1067	1067	defined in § 44-18-7.1(l)(i). “Seeds and plants used to grow food and food ingredients” shall not 24
1068	1068	include marijuana seeds or plants. 25
1069	1069	(66) Feminine hygiene products. From the sale and from the storage, use, or other 26
1070	1070	consumption of tampons, panty liners, menstrual cups, sanitary napkins, and other similar products 27
1071	1071	the principal use of which is feminine hygiene in connection with the menstrual cycle. 28
1072	1072	(67) “Breast pump collection and storage supplies” means items of tangible personal 29
1073	1073	property used in conjunction with a breast pump to collect milk expressed from a human breast and 30
1074	1074	to store collected milk until it is ready for consumption. “Breast pump collection and storage 31
1075	1075	supplies” include, but are not limited to, breast shields and breast shield connectors; breast pump 32
1076	1076	tubes and tubing adaptors; breast pump valves and membranes; backflow protectors and backflow 33
1077	1077	protector adaptors; bottles and bottle caps specific to the operation of the breast pump; breast milk 34
1078	1078
1079	1079
1080	1080	LC002767 - Page 30 of 31
1081	1081	storage bags; and related items sold as part of a breast pump kit pre-packaged by the breast pump 1
1082	1082	manufacturer. “Breast pump collection and storage supplies” does not include: bottles and bottle 2
1083	1083	caps not specific to the operation of the breast pump; breast pump travel bags and other similar 3
1084	1084	carrying accessories, including ice packs, labels, and other similar products, unless sold as part of 4
1085	1085	a breast pump kit pre-packed by the breast pump manufacturer; breast pump cleaning supplies, 5
1086	1086	unless sold as part of a breast pump kit pre-packaged by the breast pump manufacturer; nursing 6
1087	1087	bras, bra pads, breast shells, and other similar products; and creams, ointments, and other similar 7
1088	1088	products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples. 8
1089	1089	(68) Trade-in value of motorcycles. From the sale and from the storage, use, or other 9
1090	1090	consumption in this state of so much of the purchase price paid for a new or used motorcycle as is 10
1091	1091	allocated for a trade-in allowance on the motorcycle of the buyer given in trade to the seller, or of 11
1092	1092	the proceeds applicable only to the motorcycle as are received from the manufacturer of 12
1093	1093	motorcycles for the repurchase of the motorcycle whether the repurchase was voluntary or not 13
1094	1094	towards the purchase of a new or used motorcycle by the buyer. For the purpose of this subsection, 14
1095	1095	the word “motorcycle” means a motorcycle not used for hire and does not refer to any other type 15
1096	1096	of motor vehicle. 16
1097	1097	SECTION 3. This act shall take effect upon passage. 17
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1099	1099	LC002767
1100	1100	========
1101	1101
1102	1102
1103	1103	LC002767 - Page 31 of 31
1104	1104	EXPLANATION
1105	1105	BY THE LEGISLATIVE COUNCIL
1106	1106	OF
1107	1107	A N A C T
1108	1108	RELATING TO TAXATION -- PROPERTY SUBJECT TO TAXATION
1109	1109	***
1110	1110	This act would repeal the property tax and sales and use tax exemption for boats. 1
1111	1111	This act would take effect upon passage. 2
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1113	1113	LC002767
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