Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0094 Compare Versions

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

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5	5	2025 -- S 0094
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7	7	LC000879
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND
16	16	COMPUTATION
17	17	Introduced By: Senators Burke, Tikoian, LaMountain, Felag, DiMario, Appollonio,
18	18	Raptakis, and DiPalma
19	19	Date Introduced: January 31, 2025
20	20	Referred To: Senate Finance
21	21
22	22
23	23	It is enacted by the General Assembly as follows:
24	24	SECTION 1. Section 44-18-7.1 of the General Laws in Chapter 44-18 entitled "Sales and 1
25	25	Use Taxes — Liability and Computation" is hereby amended to read as follows: 2
26	26	44-18-7.1. Additional definitions. 3
27	27	(a) “Agreement” means the streamlined sales and use tax agreement. 4
28	28	(b) “Alcoholic beverages” means beverages, including, without limitation, beer and malt 5
29	29	beverages, that are suitable for human consumption and contain one-half of one percent (.5%) or 6
30	30	more of alcohol by volume. 7
31	31	(c) “Bundled transaction” is the retail sale of two or more products, except real property 8
32	32	and services to real property, where (1) The products are otherwise distinct and identifiable, and 9
33	33	(2) The products are sold for one non-itemized price. A “bundled transaction” does not include the 10
34	34	sale of any products in which the “sales price” varies, or is negotiable, based on the selection by 11
35	35	the purchaser of the products included in the transaction. 12
36	36	(i) “Distinct and identifiable products” does not include: 13
37	37	(A) Packaging — such as containers, boxes, sacks, bags, and bottles — or other materials 14
38	38	— such as wrapping, labels, tags, and instruction guides — that accompany the “retail sale” of the 15
39	39	products and are incidental or immaterial to the “retail sale” thereof. Examples of packaging that 16
40	40	are incidental or immaterial include grocery sacks, shoeboxes, dry cleaning garment bags, and 17
41	41	express delivery envelopes and boxes. 18
42	42
43	43
44	44	LC000879 - Page 2 of 30
45	45	(B) A product provided free of charge with the required purchase of another product. A 1
46	46	product is “provided free of charge” if the “sales price” of the product purchased does not vary 2
47	47	depending on the inclusion of the products “provided free of charge.” 3
48	48	(C) Items included in the member state’s definition of “sales price,” pursuant to appendix 4
49	49	C of the agreement. 5
50	50	(ii) The term “one non-itemized price” does not include a price that is separately identified 6
51	51	by product on binding sales or other supporting sales-related documentation made available to the 7
52	52	customer in paper or electronic form including, but not limited to, an invoice, bill of sale, receipt, 8
53	53	contract, service agreement, lease agreement, periodic notice of rates and services, rate card, or 9
54	54	price list. 10
55	55	(iii) A transaction that otherwise meets the definition of a “bundled transaction” as defined 11
56	56	above, is not a “bundled transaction” if it is: 12
57	57	(A) The “retail sale” of tangible personal property and a service where the tangible personal 13
58	58	property is essential to the use of the service, and is provided exclusively in connection with the 14
59	59	service, and the true object of the transaction is the service; or 15
60	60	(B) The “retail sale” of services where one service is provided that is essential to the use 16
61	61	or receipt of a second service and the first service is provided exclusively in connection with the 17
62	62	second service and the true object of the transaction is the second service; or 18
63	63	(C) A transaction that includes taxable products and nontaxable products and the “purchase 19
64	64	price” or “sales price” of the taxable products is de minimis. 20
65	65	1. De minimis means the seller’s “purchase price” or “sales price” of the taxable products 21
66	66	is ten percent (10%) or less of the total “purchase price” or “sales price” of the bundled products. 22
67	67	2. Sellers shall use either the “purchase price” or the “sales price” of the products to 23
68	68	determine if the taxable products are de minimis. Sellers may not use a combination of the 24
69	69	“purchase price” and “sales price” of the products to determine if the taxable products are de 25
70	70	minimis. 26
71	71	3. Sellers shall use the full term of a service contract to determine if the taxable products 27
72	72	are de minimis; or 28
73	73	(D) The “retail sale” of exempt tangible personal property and taxable tangible personal 29
74	74	property where: 30
75	75	1. The transaction includes “food and food ingredients,” “drugs,” “durable medical 31
76	76	equipment,” “mobility enhancing equipment,” “over-the-counter drugs,” “prosthetic devices” (all 32
77	77	as defined in this section) or medical supplies; and 33
78	78	2. Where the seller’s “purchase price” or “sales price” of the taxable tangible personal 34
79	79
80	80
81	81	LC000879 - Page 3 of 30
82	82	property is fifty percent (50%) or less of the total “purchase price” or “sales price” of the bundled 1
83	83	tangible personal property. Sellers may not use a combination of the “purchase price” and “sales 2
84	84	price” of the tangible personal property when making the fifty percent (50%) determination for a 3
85	85	transaction. 4
86	86	(d) “Certified automated system (CAS)” means software certified under the agreement to 5
87	87	calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit 6
88	88	to the appropriate state, and maintain a record of the transaction. 7
89	89	(e) “Certified service provider (CSP)” means an agent certified under the agreement to 8
90	90	perform all the seller’s sales and use tax functions, other than the seller’s obligation to remit tax on 9
91	91	its own purchases. 10
92	92	(f) Clothing and related items.(i) “Clothing” means all human wearing apparel suitable for 11
93	93	general use. 12
94	94	(ii) “Clothing accessories or equipment” means incidental items worn on the person or in 13
95	95	conjunction with “clothing.” “Clothing accessories or equipment” does not include “clothing,” 14
96	96	“sport or recreational equipment,” or “protective equipment.” 15
97	97	(iii) “Protective equipment” means items for human wear and designed as protection of the 16
98	98	wearer against injury or disease or as protections against damage or injury of other persons or 17
99	99	property but not suitable for general use. “Protective equipment” does not include “clothing,” 18
100	100	“clothing accessories or equipment,” and “sport or recreational equipment.” 19
101	101	(iv) “Sport or recreational equipment” means items designed for human use and worn in 20
102	102	conjunction with an athletic or recreational activity that are not suitable for general use. “Sport or 21
103	103	recreational equipment” does not include “clothing,” “clothing accessories or equipment,” and 22
104	104	“protective equipment.” 23
105	105	(g) Computer and related items.(i) “Computer” means an electronic device that accepts 24
106	106	information in digital or similar form and manipulates it for a result based on a sequence of 25
107	107	instructions. 26
108	108	(ii) “Computer software” means a set of coded instructions designed to cause a “computer” 27
109	109	or automatic data processing equipment to perform a task. 28
110	110	(iii) “Delivered electronically” means delivered to the purchaser by means other than 29
111	111	tangible storage media. 30
112	112	(iv) “Electronic” means relating to technology having electrical, digital, magnetic, 31
113	113	wireless, optical, electromagnetic, or similar capabilities. 32
114	114	(v) “Load and leave” means delivery to the purchaser by use of a tangible storage media 33
115	115	where the tangible storage media is not physically transferred to the purchaser. 34
116	116
117	117
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119	119	(vi) “Prewritten computer software” means “computer software,” including prewritten 1
120	120	upgrades, that is not designed and developed by the author or other creator to the specifications of 2
121	121	a specific purchaser. The combining of two (2) or more “prewritten computer software” programs 3
122	122	or prewritten portions thereof does not cause the combination to be other than “prewritten computer 4
123	123	software.” “Prewritten computer software” includes software designed and developed by the 5
124	124	author or other creator to the specifications of a specific purchaser when it is sold to a person other 6
125	125	than the specific purchaser. Where a person modifies or enhances “computer software” of which 7
126	126	the person is not the author or creator, the person shall be deemed to be the author or creator only 8
127	127	of such person’s modifications or enhancements. “Prewritten computer software” or a prewritten 9
128	128	portion thereof that is modified or enhanced to any degree, where such modification or 10
129	129	enhancement is designed and developed to the specifications of a specific purchaser, remains 11
130	130	“prewritten computer software”; provided, however, that where there is a reasonable, separately 12
131	131	stated charge or an invoice or other statement of the price given to the purchaser for such 13
132	132	modification or enhancement, such modification or enhancement shall not constitute “prewritten 14
133	133	computer software.” 15
134	134	(vii) “Vendor-hosted prewritten computer software” means prewritten computer software 16
135	135	that is accessed through the internet and/or a vendor-hosted server regardless of whether the access 17
136	136	is permanent or temporary and regardless of whether any downloading occurs. 18
137	137	(h) Drugs and related items.(i) “Drug” means a compound, substance, or preparation, and 19
138	138	any component of a compound, substance, or preparation, other than “food and food ingredients,” 20
139	139	“dietary supplements” or “alcoholic beverages”: 21
140	140	(A) Recognized in the official United States Pharmacopoeia, official Homeopathic 22
141	141	Pharmacopoeia of the United States, or official National Formulary, and supplement to any of them; 23
142	142	or 24
143	143	(B) Intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease; 25
144	144	or 26
145	145	(C) Intended to affect the structure or any function of the body. 27
146	146	“Drug” shall also include insulin and medical oxygen whether or not sold on prescription. 28
147	147	(ii) “Over-the-counter drug” means a drug that contains a label that identifies the product 29
148	148	as a drug as required by 21 C.F.R. § 201.66. The “over-the-counter drug” label includes: 30
149	149	(A) A “Drug Facts” panel; or 31
150	150	(B) A statement of the “active ingredient(s)” with a list of those ingredients contained in 32
151	151	the compound, substance, or preparation. 33
152	152	“Over-the-counter drug” shall not include “grooming and hygiene products.” 34
153	153
154	154
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156	156	(iii) “Grooming and hygiene products” are soaps and cleaning solutions, shampoo, 1
157	157	toothpaste, mouthwash, antiperspirants, and suntan lotions and screens, regardless of whether the 2
158	158	items meet the definition of “over-the-counter drugs.” 3
159	159	(iv) “Prescription” means an order, formula, or recipe issued in any form of oral, written, 4
160	160	electronic, or other means of transmission by a duly licensed practitioner authorized by the laws of 5
161	161	the member state. 6
162	162	(i) “Delivery charges” means charges by the seller of personal property or services for 7
163	163	preparation and delivery to a location designated by the purchaser of personal property or services 8
164	164	including, but not limited to: transportation, shipping, postage, handling, crating, and packing. 9
165	165	“Delivery charges” shall not include the charges for delivery of “direct mail” if the charges 10
166	166	are separately stated on an invoice or similar billing document given to the purchaser. 11
167	167	(j) “Direct mail” means printed material delivered or distributed by United States mail or 12
168	168	other delivery service to a mass audience or to addressees on a mailing list provided by the 13
169	169	purchaser or at the direction of the purchaser when the cost of the items are not billed directly to 14
170	170	the recipients. “Direct mail” includes tangible personal property supplied directly or indirectly by 15
171	171	the purchaser to the direct mail seller for inclusion in the package containing the printed material. 16
172	172	“Direct mail” does not include multiple items of printed material delivered to a single address. 17
173	173	(k) “Durable medical equipment” means equipment including repair and replacement parts 18
174	174	for same which: 19
175	175	(i) Can withstand repeated use; and 20
176	176	(ii) Is primarily and customarily used to serve a medical purpose; and 21
177	177	(iii) Generally is not useful to a person in the absence of illness or injury; and 22
178	178	(iv) Is not worn in or on the body. 23
179	179	Durable medical equipment does not include mobility enhancing equipment. 24
180	180	(l) Food and related items.(i) “Food and food ingredients” means substances, whether in 25
181	181	liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing 26
182	182	by humans and are consumed for their taste or nutritional value. “Food and food ingredients” does 27
183	183	not include “alcoholic beverages,” “tobacco,” “candy,” “dietary supplements,” and “soft drinks.” 28
184	184	(ii) “Prepared food” means: 29
185	185	(A) Food sold in a heated state or heated by the seller; 30
186	186	(B) Two (2) or more food ingredients mixed or combined by the seller for sale as a single 31
187	187	item; or 32
188	188	(C) Food sold with eating utensils provided by the seller, including: plates, knives, forks, 33
189	189	spoons, glasses, cups, napkins, or straws. A plate does not include a container or packaging used 34
190	190
191	191
192	192	LC000879 - Page 6 of 30
193	193	to transport the food. 1
194	194	“Prepared food” in subsection (l)(ii)(B) does not include food that is only cut, repackaged, 2
195	195	or pasteurized by the seller, and eggs, fish, meat, poultry, and foods containing these raw animal 3
196	196	foods requiring cooking by the consumer as recommended by the Food and Drug Administration 4
197	197	in chapter 3, part 401.11 of its Food Code so as to prevent food borne illnesses. 5
198	198	(iii) “Candy” means a preparation of sugar, honey, or other natural or artificial sweeteners 6
199	199	in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, 7
200	200	drops, or pieces. “Candy” shall not include any preparation containing flour and shall require no 8
201	201	refrigeration. 9
202	202	(iv) “Soft drinks” means non-alcoholic beverages that contain natural or artificial 10
203	203	sweeteners. “Soft drinks” do not include beverages that contain milk or milk products, soy, rice, 11
204	204	or similar milk substitutes, or greater than fifty percent (50%) of vegetable or fruit juice by volume. 12
205	205	(v) “Dietary supplement” means any product, other than “tobacco,” intended to supplement 13
206	206	the diet that: 14
207	207	(A) Contains one or more of the following dietary ingredients: 15
208	208	1. A vitamin; 16
209	209	2. A mineral; 17
210	210	3. An herb or other botanical; 18
211	211	4. An amino acid; 19
212	212	5. A dietary substance for use by humans to supplement the diet by increasing the total 20
213	213	dietary intake; or 21
214	214	6. A concentrate, metabolite, constituent, extract, or combination of any ingredient 22
215	215	described above; and 23
216	216	(B) Is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, or 24
217	217	if not intended for ingestion in such a form, is not represented as conventional food and is not 25
218	218	represented for use as a sole item of a meal or of the diet; and 26
219	219	(C) Is required to be labeled as a dietary supplement, identifiable by the “supplemental 27
220	220	facts” box found on the label and as required pursuant to 21 C.F.R. § 101.36. 28
221	221	(m) “Food sold through vending machines” means food dispensed from a machine or other 29
222	222	mechanical device that accepts payment. 30
223	223	(n) “Hotel” means every building or other structure kept, used, maintained, advertised as, 31
224	224	or held out to the public to be a place where living quarters are supplied for pay to transient or 32
225	225	permanent guests and tenants and includes a motel. 33
226	226	(i) “Living quarters” means sleeping rooms, sleeping or housekeeping accommodations, or 34
227	227
228	228
229	229	LC000879 - Page 7 of 30
230	230	any other room or accommodation in any part of the hotel, rooming house, or tourist camp that is 1
231	231	available for or rented out for hire in the lodging of guests. 2
232	232	(ii) “Rooming house” means every house, boat, vehicle, motor court, or other structure 3
233	233	kept, used, maintained, advertised, or held out to the public to be a place where living quarters are 4
234	234	supplied for pay to transient or permanent guests or tenants, whether in one or adjoining buildings. 5
235	235	(iii) “Tourist camp” means a place where tents or tent houses, or camp cottages, or cabins 6
236	236	or other structures are located and offered to the public or any segment thereof for human 7
237	237	habitation. 8
238	238	(o) “Lease or rental” means any transfer of possession or control of tangible personal 9
239	239	property for a fixed or indeterminate term for consideration. A lease or rental may include future 10
240	240	options to purchase or extend. Lease or rental does not include: 11
241	241	(i) A transfer of possession or control of property under a security agreement or deferred 12
242	242	payment plan that requires the transfer of title upon completion of the required payments; 13
243	243	(ii) A transfer of possession or control of property under an agreement that requires the 14
244	244	transfer of title upon completion of required payments and payment of an option price does not 15
245	245	exceed the greater of one hundred dollars ($100) or one percent of the total required payments; or 16
246	246	(iii) Providing tangible personal property along with an operator for a fixed or 17
247	247	indeterminate period of time. A condition of this exclusion is that the operator is necessary for the 18
248	248	equipment to perform as designed. For the purpose of this subsection, an operator must do more 19
249	249	than maintain, inspect, or set-up the tangible personal property. 20
250	250	(iv) Lease or rental does include agreements covering motor vehicles and trailers where the 21
251	251	amount of consideration may be increased or decreased by reference to the amount realized upon 22
252	252	sale or disposition of the property as defined in 26 U.S.C. § 7701(h)(1). 23
253	253	(v) This definition shall be used for sales and use tax purposes regardless if a transaction 24
254	254	is characterized as a lease or rental under generally accepted accounting principles, the Internal 25
255	255	Revenue Code, the Uniform Commercial Code, or other provisions of federal, state, or local law. 26
256	256	(vi) This definition will be applied only prospectively from the date of adoption and will 27
257	257	have no retroactive impact on existing leases or rentals. This definition shall neither impact any 28
258	258	existing sale-leaseback exemption or exclusions that a state may have, nor preclude a state from 29
259	259	adopting a sale-leaseback exemption or exclusion after the effective date of the agreement. 30
260	260	(p) “Mobility enhancing equipment” means equipment, including repair and replacement 31
261	261	parts to same, that: 32
262	262	(i) Is primarily and customarily used to provide or increase the ability to move from one 33
263	263	place to another and that is appropriate for use either in a home or a motor vehicle; and 34
264	264
265	265
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267	267	(ii) Is not generally used by persons with normal mobility; and 1
268	268	(iii) Does not include any motor vehicle or equipment on a motor vehicle normally 2
269	269	provided by a motor vehicle manufacturer. 3
270	270	Mobility enhancing equipment does not include durable medical equipment. 4
271	271	(q) “Model 1 Seller” means a seller that has selected a CSP as its agent to perform all the 5
272	272	seller’s sales and use tax functions, other than the seller’s obligation to remit tax on its own 6
273	273	purchases. 7
274	274	(r) “Model 2 Seller” means a seller that has selected a CAS to perform part of its sales and 8
275	275	use tax functions, but retains responsibility for remitting the tax. 9
276	276	(s) “Model 3 Seller” means a seller that has sales in at least five member states, has total 10
277	277	annual sales revenue of at least five hundred million dollars ($500,000,000), has a proprietary 11
278	278	system that calculates the amount of tax due each jurisdiction, and has entered into a performance 12
279	279	agreement with the member states that establishes a tax performance standard for the seller. As 13
280	280	used in this definition, a seller includes an affiliated group of sellers using the same proprietary 14
281	281	system. 15
282	282	(t) “Prosthetic device” means a replacement, corrective, or supportive device including 16
283	283	repair and replacement parts for same worn on or in the body to: 17
284	284	(i) Artificially replace a missing portion of the body; 18
285	285	(ii) Prevent or correct physical deformity or malfunction; or 19
286	286	(iii) Support a weak or deformed portion of the body. 20
287	287	(u) “Purchaser” means a person to whom a sale of personal property is made or to whom a 21
288	288	service is furnished. 22
289	289	(v) “Purchase price” applies to the measure subject to use tax and has the same meaning as 23
290	290	sales price. 24
291	291	(w) “Seller” means a person making sales, leases, or rentals of personal property or 25
292	292	services. 26
293	293	(x) Specified digital products.(i) “Specified digital products” means electronically 27
294	294	transferred: 28
295	295	(A) “Digital audio-visual works” which means a series of related images which, when 29
296	296	shown in succession, impart an impression of motion, together with accompanying sounds, if any; 30
297	297	(B) “Digital audio works” which means works that result from the fixation of a series of 31
298	298	musical, spoken, or other sounds, including ringtones; and/or 32
299	299	(C) “Digital books” which means works that are generally recognized in the ordinary and 33
300	300	usual sense as “books.” 34
301	301
302	302
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304	304	(ii) For purposes of the definition of “digital audio works,” “ringtones” means digitized 1
305	305	sound files that are downloaded onto a device and that may be used to alert the customer with 2
306	306	respect to a communication. 3
307	307	(iii) For purposes of the definition of “specified digital products,” “transferred 4
308	308	electronically” means obtained by the purchaser by means other than tangible storage media. 5
309	309	(iv) For the purposes of “specified digital products,” “end user” includes any person other 6
310	310	than a person who receives by contract a product “transferred electronically” for further broadcast, 7
311	311	rebroadcast, transmission, retransmission, licensing, relicensing, distribution, redistribution, or 8
312	312	exhibition of the product, in whole or in part, to another person or persons. A person who purchases 9
313	313	products “transferred electronically” or the code for “specified digital products” for the purpose of 10
314	314	giving away such products or code shall not be considered to have engaged in the distribution or 11
315	315	redistribution of such products or code and shall be treated as an end user. 12
316	316	(v) For the purposes of “specified digital products,” “permanent” means perpetual or for 13
317	317	an indefinite or unspecified length of time. 14
318	318	(y) “State” means any state of the United States and the District of Columbia. 15
319	319	(z) “Telecommunications” tax base/exemption terms. 16
320	320	(i) Telecommunication terms shall be defined as follows: 17
321	321	(A) “Ancillary services” means services that are associated with or incidental to the 18
322	322	provision of “telecommunications services,” including, but not limited to, “detailed 19
323	323	telecommunications billing,” “directory assistance,” “vertical service,” and “voice mail services.” 20
324	324	(B) “Conference bridging service” means an “ancillary service” that links two (2) or more 21
325	325	participants of an audio or video conference call and may include the provision of a telephone 22
326	326	number. “Conference bridging service” does not include the “telecommunications services” used 23
327	327	to reach the conference bridge. 24
328	328	(C) “Detailed telecommunications billing service” means an “ancillary service” of 25
329	329	separately stating information pertaining to individual calls on a customer’s billing statement. 26
330	330	(D) “Directory assistance” means an “ancillary service” of providing telephone number 27
331	331	information, and/or address information. 28
332	332	(E) “Vertical service” means an “ancillary service” that is offered in connection with one 29
333	333	or more “telecommunications services,” which offers advanced calling features that allow 30
334	334	customers to identify callers and to manage multiple calls and call connections, including 31
335	335	“conference bridging services.” 32
336	336	(F) “Voice mail service” means an “ancillary service” that enables the customer to store, 33
337	337	send, or receive recorded messages. “Voice mail service” does not include any “vertical services” 34
338	338
339	339
340	340	LC000879 - Page 10 of 30
341	341	that the customer may be required to have in order to utilize the “voice mail service.” 1
342	342	(G) “Telecommunications service” means the electronic transmission, conveyance, or 2
343	343	routing of voice, data, audio, video, or any other information or signals to a point, or between or 3
344	344	among points. The term “telecommunications service” includes such transmission, conveyance, or 4
345	345	routing in which computer processing applications are used to act on the form, code, or protocol of 5
346	346	the content for purposes of transmission, conveyance, or routing without regard to whether such 6
347	347	service is referred to as voice over internet protocol services or is classified by the Federal 7
348	348	Communications Commission as enhanced or value added. “Telecommunications service” does 8
349	349	not include: 9
350	350	(1) Data processing and information services that allow data to be generated, acquired, 10
351	351	stored, processed, or retrieved and delivered by an electronic transmission to a purchaser where 11
352	352	such purchaser’s primary purpose for the underlying transaction is the processed data or 12
353	353	information; 13
354	354	(2) Installation or maintenance of wiring or equipment on a customer’s premises; 14
355	355	(3) Tangible personal property; 15
356	356	(4) Advertising, including, but not limited to, directory advertising; 16
357	357	(5) Billing and collection services provided to third parties; 17
358	358	(6) Internet access service; 18
359	359	(7) Radio and television audio and video programming services, regardless of the medium, 19
360	360	including the furnishing of transmission, conveyance, and routing of such services by the 20
361	361	programming service provider. Radio and television audio and video programming services shall 21
362	362	include, but not be limited to, cable service as defined in 47 U.S.C. § 522(6) and audio and video 22
363	363	programming services delivered by commercial mobile radio service providers as defined in 47 23
364	364	C.F.R. § 20.3; 24
365	365	(8) “Ancillary services”; or 25
366	366	(9) Digital products “delivered electronically,” including, but not limited to: software, 26
367	367	music, video, reading materials, or ring tones. 27
368	368	(H) “800 service” means a “telecommunications service” that allows a caller to dial a toll-28
369	369	free number without incurring a charge for the call. The service is typically marketed under the 29
370	370	name “800,” “855,” “866,” “877,” and “888” toll-free calling, and any subsequent numbers 30
371	371	designated by the Federal Communications Commission. 31
372	372	(I) “900 service” means an inbound toll “telecommunications service” purchased by a 32
373	373	subscriber that allows the subscriber’s customers to call in to the subscriber’s prerecorded 33
374	374	announcement or live service. “900 service” does not include the charge for: collection services 34
375	375
376	376
377	377	LC000879 - Page 11 of 30
378	378	provided by the seller of the “telecommunications services” to the subscriber, or service or product 1
379	379	sold by the subscriber to the subscriber’s customer. The service is typically marketed under the 2
380	380	name “900 service,” and any subsequent numbers designated by the Federal Communications 3
381	381	Commission. 4
382	382	(J) “Fixed wireless service” means a “telecommunications service” that provides radio 5
383	383	communication between fixed points. 6
384	384	(K) “Mobile wireless service” means a “telecommunications service” that is transmitted, 7
385	385	conveyed, or routed regardless of the technology used, whereby the origination and/or termination 8
386	386	points of the transmission, conveyance, or routing are not fixed, including, by way of example only, 9
387	387	“telecommunications services” that are provided by a commercial mobile radio service provider. 10
388	388	(L) “Paging service” means a “telecommunications service” that provides transmission of 11
389	389	coded radio signals for the purpose of activating specific pagers; such transmissions may include 12
390	390	messages and/or sounds. 13
391	391	(M) “Prepaid calling service” means the right to access exclusively “telecommunications 14
392	392	services,” which must be paid for in advance and that enables the origination of calls using an 15
393	393	access number or authorization code, whether manually or electronically dialed, and that is sold in 16
394	394	predetermined units or dollars of which the number declines with use in a known amount. 17
395	395	(N) “Prepaid wireless calling service” means a “telecommunications service” that provides 18
396	396	the right to utilize “mobile wireless service,” as well as other non-telecommunications services, 19
397	397	including the download of digital products “delivered electronically,” content and “ancillary 20
398	398	services” which must be paid for in advance that is sold in predetermined units of dollars of which 21
399	399	the number declines with use in a known amount. 22
400	400	(O) “Private communications service” means a telecommunications service that entitles 23
401	401	the customer to exclusive or priority use of a communications channel or group of channels between 24
402	402	or among termination points, regardless of the manner in which such channel or channels are 25
403	403	connected, and includes switching capacity, extension lines, stations, and any other associated 26
404	404	services that are provided in connection with the use of such channel or channels. 27
405	405	(P) “Value-added non-voice data service” means a service that otherwise meets the 28
406	406	definition of “telecommunications services” in which computer processing applications are used to 29
407	407	act on the form, content, code, or protocol of the information or data primarily for a purpose other 30
408	408	than transmission, conveyance, or routing. 31
409	409	(ii) “Modifiers of Sales Tax Base/Exemption Terms” — the following terms can be used 32
410	410	to further delineate the type of “telecommunications service” to be taxed or exempted. The terms 33
411	411	would be used with the broader terms and subcategories delineated above. 34
412	412
413	413
414	414	LC000879 - Page 12 of 30
415	415	(A) “Coin-operated telephone service” means a “telecommunications service” paid for by 1
416	416	inserting money into a telephone accepting direct deposits of money to operate. 2
417	417	(B) “International” means a “telecommunications service” that originates or terminates in 3
418	418	the United States and terminates or originates outside the United States, respectively. United States 4
419	419	includes the District of Columbia or a U.S. territory or possession. 5
420	420	(C) “Interstate” means a “telecommunications service” that originates in one United States 6
421	421	state, or a United States territory or possession, and terminates in a different United States state or 7
422	422	a United States territory or possession. 8
423	423	(D) “Intrastate” means a “telecommunications service” that originates in one United States 9
424	424	state or a United States territory or possession, and terminates in the same United States state or a 10
425	425	United States territory or possession. 11
426	426	(E) “Pay telephone service” means a “telecommunications service” provided through any 12
427	427	pay telephone. 13
428	428	(F) “Residential telecommunications service” means a “telecommunications service” or 14
429	429	“ancillary services” provided to an individual for personal use at a residential address, including an 15
430	430	individual dwelling unit such as an apartment. In the case of institutions where individuals reside, 16
431	431	such as schools or nursing homes, “telecommunications service” is considered residential if it is 17
432	432	provided to and paid for by an individual resident rather than the institution. 18
433	433	The terms “ancillary services” and “telecommunications service” are defined as a broad 19
434	434	range of services. The terms “ancillary services” and “telecommunications service” are broader 20
435	435	than the sum of the subcategories. Definitions of subcategories of “ancillary services” and 21
436	436	“telecommunications service” can be used by a member state alone or in combination with other 22
437	437	subcategories to define a narrower tax base than the definitions of “ancillary services” and 23
438	438	“telecommunications service” would imply. The subcategories can also be used by a member state 24
439	439	to provide exemptions for certain subcategories of the more broadly defined terms. 25
440	440	A member state that specifically imposes tax on, or exempts from tax, local telephone or 26
441	441	local telecommunications service may define “local service” in any manner in accordance with § 27
442	442	44-18.1-28, except as limited by other sections of this Agreement. 28
443	443	(aa) “Tobacco” means cigarettes, cigars, chewing, or pipe tobacco, or any other item that 29
444	444	contains tobacco. 30
445	445	SECTION 2. Section 44-18-30 of the General Laws in Chapter 44-18 entitled "Sales and 31
446	446	Use Taxes — Liability and Computation" is hereby amended to read as follows: 32
447	447	44-18-30. Gross receipts exempt from sales and use taxes. 33
448	448	There are exempted from the taxes imposed by this chapter the following gross receipts: 34
449	449
450	450
451	451	LC000879 - Page 13 of 30
452	452	(1) Sales and uses beyond constitutional power of state. From the sale and from the storage, 1
453	453	use, or other consumption in this state of tangible personal property the gross receipts from the sale 2
454	454	of which, or the storage, use, or other consumption of which, this state is prohibited from taxing 3
455	455	under the Constitution of the United States or under the constitution of this state. 4
456	456	(2) Newspapers. 5
457	457	(i) From the sale and from the storage, use, or other consumption in this state of any 6
458	458	newspaper. 7
459	459	(ii) “Newspaper” means an unbound publication printed on newsprint that contains news, 8
460	460	editorial comment, opinions, features, advertising matter, and other matters of public interest. 9
461	461	(iii) “Newspaper” does not include a magazine, handbill, circular, flyer, sales catalog, or 10
462	462	similar item unless the item is printed for, and distributed as, a part of a newspaper. 11
463	463	(3) School meals. From the sale and from the storage, use, or other consumption in this 12
464	464	state of meals served by public, private, or parochial schools, school districts, colleges, universities, 13
465	465	student organizations, and parent-teacher associations to the students or teachers of a school, 14
466	466	college, or university whether the meals are served by the educational institutions or by a food 15
467	467	service or management entity under contract to the educational institutions. 16
468	468	(4) Containers. 17
469	469	(i) From the sale and from the storage, use, or other consumption in this state of: 18
470	470	(A) Non-returnable containers, including boxes, paper bags, and wrapping materials that 19
471	471	are biodegradable and all bags and wrapping materials utilized in the medical and healing arts, 20
472	472	when sold without the contents to persons who place the contents in the container and sell the 21
473	473	contents with the container. 22
474	474	(B) Containers when sold with the contents if the sale price of the contents is not required 23
475	475	to be included in the measure of the taxes imposed by this chapter. 24
476	476	(C) Returnable containers when sold with the contents in connection with a retail sale of 25
477	477	the contents or when resold for refilling. 26
478	478	(D) Keg and barrel containers, whether returnable or not, when sold to alcoholic beverage 27
479	479	producers who place the alcoholic beverages in the containers. 28
480	480	(ii) As used in this subdivision, the term “returnable containers” means containers of a kind 29
481	481	customarily returned by the buyer of the contents for reuse. All other containers are “non-returnable 30
482	482	containers.” 31
483	483	(5)(i) Charitable, educational, and religious organizations. From the sale to, as in defined 32
484	484	in this section, and from the storage, use, and other consumption in this state, or any other state of 33
485	485	the United States of America, of tangible personal property by hospitals not operated for a profit; 34
486	486
487	487
488	488	LC000879 - Page 14 of 30
489	489	“educational institutions” as defined in subdivision (18) not operated for a profit; churches, 1
490	490	orphanages, and other institutions or organizations operated exclusively for religious or charitable 2
491	491	purposes; interest-free loan associations not operated for profit; nonprofit, organized sporting 3
492	492	leagues and associations and bands for boys and girls under the age of nineteen (19) years; the 4
493	493	following vocational student organizations that are state chapters of national vocational student 5
494	494	organizations: Distributive Education Clubs of America (DECA); Future Business Leaders of 6
495	495	America, Phi Beta Lambda (FBLA/PBL); Future Farmers of America (FFA); Future Homemakers 7
496	496	of America/Home Economics Related Occupations (FHA/HERD); Vocational Industrial Clubs of 8
497	497	America (VICA); organized nonprofit golden age and senior citizens clubs for men and women; 9
498	498	and parent-teacher associations; and from the sale, storage, use, and other consumption in this state, 10
499	499	of and by the Industrial Foundation of Burrillville, a Rhode Island domestic nonprofit corporation. 11
500	500	(ii) In the case of contracts entered into with the federal government, its agencies, or 12
501	501	instrumentalities, this state, or any other state of the United States of America, its agencies, any 13
502	502	city, town, district, or other political subdivision of the states; hospitals not operated for profit; 14
503	503	educational institutions not operated for profit; churches, orphanages, and other institutions or 15
504	504	organizations operated exclusively for religious or charitable purposes, the contractor may purchase 16
505	505	such materials and supplies (materials and/or supplies are defined as those that are essential to the 17
506	506	project) that are to be utilized in the construction of the projects being performed under the contracts 18
507	507	without payment of the tax. 19
508	508	(iii) The contractor shall not charge any sales or use tax to any exempt agency, institution, 20
509	509	or organization but shall in that instance provide his or her suppliers with certificates in the form 21
510	510	as determined by the division of taxation showing the reason for exemption and the contractor’s 22
511	511	records must substantiate the claim for exemption by showing the disposition of all property so 23
512	512	purchased. If any property is then used for a nonexempt purpose, the contractor must pay the tax 24
513	513	on the property used. 25
514	514	(6) Gasoline. From the sale and from the storage, use, or other consumption in this state 26
515	515	of: (i) Gasoline and other products taxed under chapter 36 of title 31 and (ii) Fuels used for the 27
516	516	propulsion of airplanes. 28
517	517	(7) Purchase for manufacturing purposes. 29
518	518	(i) From the sale and from the storage, use, or other consumption in this state of computer 30
519	519	software, tangible personal property, electricity, natural gas, artificial gas, steam, refrigeration, and 31
520	520	water, when the property or service is purchased for the purpose of being manufactured into a 32
521	521	finished product for resale and becomes an ingredient, component, or integral part of the 33
522	522	manufactured, compounded, processed, assembled, or prepared product, or if the property or 34
523	523
524	524
525	525	LC000879 - Page 15 of 30
526	526	service is consumed in the process of manufacturing for resale computer software, tangible personal 1
527	527	property, electricity, natural gas, artificial gas, steam, refrigeration, or water. 2
528	528	(ii) “Consumed” means destroyed, used up, or worn out to the degree or extent that the 3
529	529	property cannot be repaired, reconditioned, or rendered fit for further manufacturing use. 4
530	530	(iii) “Consumed” includes mere obsolescence. 5
531	531	(iv) “Manufacturing” means and includes: manufacturing, compounding, processing, 6
532	532	assembling, preparing, or producing. 7
533	533	(v) “Process of manufacturing” means and includes all production operations performed in 8
534	534	the producing or processing room, shop, or plant, insofar as the operations are a part of and 9
535	535	connected with the manufacturing for resale of tangible personal property, electricity, natural gas, 10
536	536	artificial gas, steam, refrigeration, or water and all production operations performed insofar as the 11
537	537	operations are a part of and connected with the manufacturing for resale of computer software. 12
538	538	(vi) “Process of manufacturing” does not mean or include administration operations such 13
539	539	as general office operations, accounting, collection, or sales promotion, nor does it mean or include 14
540	540	distribution operations that occur subsequent to production operations, such as handling, storing, 15
541	541	selling, and transporting the manufactured products, even though the administration and 16
542	542	distribution operations are performed by, or in connection with, a manufacturing business. 17
543	543	(8) State and political subdivisions. From the sale to, and from the storage, use, or other 18
544	544	consumption by, this state, any city, town, district, or other political subdivision of this state. Every 19
545	545	redevelopment agency created pursuant to chapter 31 of title 45 is deemed to be a subdivision of 20
546	546	the municipality where it is located. 21
547	547	(9) Food and food ingredients. From the sale and storage, use, or other consumption in this 22
548	548	state of food and food ingredients as defined in § 44-18-7.1(l). 23
549	549	For the purposes of this exemption “food and food ingredients” shall not include candy, 24
550	550	soft drinks, dietary supplements, alcoholic beverages, tobacco, food sold through vending 25
551	551	machines, or prepared food, as those terms are defined in § 44-18-7.1, unless the prepared food is: 26
552	552	(i) Sold by a seller whose primary NAICS classification is manufacturing in sector 311, 27
553	553	except sub-sector 3118 (bakeries); 28
554	554	(ii) Sold in an unheated state by weight or volume as a single item; 29
555	555	(iii) Bakery items, including: bread, rolls, buns, biscuits, bagels, croissants, pastries, 30
556	556	donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, tortillas; and 31
557	557	is not sold with utensils provided by the seller, including: plates, knives, forks, spoons, 32
558	558	glasses, cups, napkins, or straws. 33
559	559	(10) Medicines, drugs, and durable medical equipment. From the sale and from the storage, 34
560	560
561	561
562	562	LC000879 - Page 16 of 30
563	563	use, or other consumption in this state, of: 1
564	564	(i) “Drugs” as defined in § 44-18-7.1(h)(i), sold on prescriptions, medical oxygen, and 2
565	565	insulin whether or not sold on prescription. For purposes of this exemption drugs shall not include 3
566	566	over-the-counter drugs and grooming and hygiene products as defined in § 44-18-7.1(h)(iii). 4
567	567	(ii) Durable medical equipment as defined in § 44-18-7.1(k) for home use only, including, 5
568	568	but not limited to: syringe infusers, ambulatory drug delivery pumps, hospital beds, convalescent 6
569	569	chairs, and chair lifts. Supplies used in connection with syringe infusers and ambulatory drug 7
570	570	delivery pumps that are sold on prescription to individuals to be used by them to dispense or 8
571	571	administer prescription drugs, and related ancillary dressings and supplies used to dispense or 9
572	572	administer prescription drugs, shall also be exempt from tax. 10
573	573	(11) Prosthetic devices and mobility enhancing equipment. From the sale and from the 11
574	574	storage, use, or other consumption in this state, of prosthetic devices as defined in § 44-18-7.1(t), 12
575	575	sold on prescription, including, but not limited to: artificial limbs, dentures, spectacles, eyeglasses, 13
576	576	and artificial eyes; artificial hearing devices and hearing aids, whether or not sold on prescription; 14
577	577	and mobility enhancing equipment as defined in § 44-18-7.1(p), including wheelchairs, crutches, 15
578	578	and canes. 16
579	579	(12) Coffins, caskets, urns, shrouds and burial garments. From the sale and from the 17
580	580	storage, use, or other consumption in this state of coffins, caskets, burial containers, urns, urn liners, 18
581	581	urn vaults, grave liners, grave vaults, burial tent setups, prayer cards, shrouds, and other burial 19
582	582	garments that are ordinarily sold by a funeral director as part of the business of funeral directing. 20
583	583	(13) Motor vehicles sold to nonresidents. 21
584	584	(i) From the sale, subsequent to June 30, 1958, of a motor vehicle to a bona fide nonresident 22
585	585	of this state who does not register the motor vehicle in this state, whether the sale or delivery of the 23
586	586	motor vehicle is made in this state or at the place of residence of the nonresident. A motor vehicle 24
587	587	sold to a bona fide nonresident whose state of residence does not allow a like exemption to its 25
588	588	nonresidents is not exempt from the tax imposed under § 44-18-20. In that event, the bona fide 26
589	589	nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate that would be imposed 27
590	590	in his or her state of residence not to exceed the rate that would have been imposed under § 44-18-28
591	591	20. Notwithstanding any other provisions of law, a licensed motor vehicle dealer shall add and 29
592	592	collect the tax required under this subdivision and remit the tax to the tax administrator under the 30
593	593	provisions of chapters 18 and 19 of this title. When a Rhode Island licensed, motor vehicle dealer 31
594	594	is required to add and collect the sales and use tax on the sale of a motor vehicle to a bona fide 32
595	595	nonresident as provided in this section, the dealer in computing the tax takes into consideration the 33
596	596	law of the state of the nonresident as it relates to the trade-in of motor vehicles. 34
597	597
598	598
599	599	LC000879 - Page 17 of 30
600	600	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 1
601	601	require any licensed motor vehicle dealer to keep records of sales to bona fide nonresidents as the 2
602	602	tax administrator deems reasonably necessary to substantiate the exemption provided in this 3
603	603	subdivision, including the affidavit of a licensed motor vehicle dealer that the purchaser of the 4
604	604	motor vehicle was the holder of, and had in his or her possession a valid out-of-state motor vehicle 5
605	605	registration or a valid out-of-state driver’s license. 6
606	606	(iii) Any nonresident who registers a motor vehicle in this state within ninety (90) days of 7
607	607	the date of its sale to him or her is deemed to have purchased the motor vehicle for use, storage, or 8
608	608	other consumption in this state, and is subject to, and liable for, the use tax imposed under the 9
609	609	provisions of § 44-18-20. 10
610	610	(14) Sales in public buildings by blind people. From the sale and from the storage, use, or 11
611	611	other consumption in all public buildings in this state of all products or wares by any person 12
612	612	licensed under § 40-9-11.1. 13
613	613	(15) Air and water pollution control facilities. From the sale, storage, use, or other 14
614	614	consumption in this state of tangible personal property or supplies acquired for incorporation into 15
615	615	or used and consumed in the operation of a facility, the primary purpose of which is to aid in the 16
616	616	control of the pollution or contamination of the waters or air of the state, as defined in chapter 12 17
617	617	of title 46 and chapter 23 of title 23, respectively, and that has been certified as approved for that 18
618	618	purpose by the director of environmental management. The director of environmental management 19
619	619	may certify to a portion of the tangible personal property or supplies acquired for incorporation 20
620	620	into those facilities or used and consumed in the operation of those facilities to the extent that that 21
621	621	portion has as its primary purpose the control of the pollution or contamination of the waters or air 22
622	622	of this state. As used in this subdivision, “facility” means any land, facility, device, building, 23
623	623	machinery, or equipment. 24
624	624	(16) Camps. From the rental charged for living quarters, or sleeping, or housekeeping 25
625	625	accommodations at camps or retreat houses operated by religious, charitable, educational, or other 26
626	626	organizations and associations mentioned in subsection (5), or by privately owned and operated 27
627	627	summer camps for children. 28
628	628	(17) Certain institutions. From the rental charged for living or sleeping quarters in an 29
629	629	institution licensed by the state for the hospitalization, custodial, or nursing care of human beings. 30
630	630	(18) Educational institutions. From the rental charged by any educational institution for 31
631	631	living quarters, or sleeping, or housekeeping accommodations or other rooms or accommodations 32
632	632	to any student or teacher necessitated by attendance at an educational institution. “Educational 33
633	633	institution” as used in this section means an institution of learning not operated for profit that is 34
634	634
635	635
636	636	LC000879 - Page 18 of 30
637	637	empowered to confer diplomas, educational, literary, or academic degrees; that has a regular 1
638	638	faculty, curriculum, and organized body of pupils or students in attendance throughout the usual 2
639	639	school year; that keeps and furnishes to students and others records required and accepted for 3
640	640	entrance to schools of secondary, collegiate, or graduate rank; and no part of the net earnings of 4
641	641	which inures to the benefit of any individual. 5
642	642	(19) Motor vehicle and adaptive equipment for persons with disabilities. 6
643	643	(i) From the sale of: (A) Special adaptations; (B) The component parts of the special 7
644	644	adaptations; or (C) A specially adapted motor vehicle; provided that the owner furnishes to the tax 8
645	645	administrator an affidavit of a licensed physician to the effect that the specially adapted motor 9
646	646	vehicle is necessary to transport a family member with a disability or where the vehicle has been 10
647	647	specially adapted to meet the specific needs of the person with a disability. This exemption applies 11
648	648	to not more than one motor vehicle owned and registered for personal, noncommercial use. 12
649	649	(ii) For the purpose of this subsection the term “special adaptations” includes, but is not 13
650	650	limited to: wheelchair lifts, wheelchair carriers, wheelchair ramps, wheelchair securements, hand 14
651	651	controls, steering devices, extensions, relocations, and crossovers of operator controls, power-15
652	652	assisted controls, raised tops or dropped floors, raised entry doors, or alternative signaling devices 16
653	653	to auditory signals. 17
654	654	(iii) From the sale of: (a) Special adaptations, (b) The component parts of the special 18
655	655	adaptations, for a “wheelchair accessible taxicab” as defined in § 39-14-1, and/or a “wheelchair 19
656	656	accessible public motor vehicle” as defined in § 39-14.1-1. 20
657	657	(iv) For the purpose of this subdivision the exemption for a “specially adapted motor 21
658	658	vehicle” means a use tax credit not to exceed the amount of use tax that would otherwise be due on 22
659	659	the motor vehicle, exclusive of any adaptations. The use tax credit is equal to the cost of the special 23
660	660	adaptations, including installation. 24
661	661	(20) Heating fuels. From the sale and from the storage, use, or other consumption in this 25
662	662	state of every type of heating fuel. 26
663	663	(21) Electricity and gas. From the sale and from the storage, use, or other consumption in 27
664	664	this state of electricity and gas. 28
665	665	(22) Manufacturing machinery and equipment. 29
666	666	(i) From the sale and from the storage, use, or other consumption in this state of tools, dies, 30
667	667	molds, machinery, equipment (including replacement parts), and related items to the extent used in 31
668	668	an industrial plant in connection with the actual manufacture, conversion, or processing of tangible 32
669	669	personal property, or to the extent used in connection with the actual manufacture, conversion, or 33
670	670	processing of computer software as that term is utilized in industry numbers 7371, 7372, and 7373 34
671	671
672	672
673	673	LC000879 - Page 19 of 30
674	674	in the standard industrial classification manual prepared by the Technical Committee on Industrial 1
675	675	Classification, Office of Statistical Standards, Executive Office of the President, United States 2
676	676	Bureau of the Budget, as revised from time to time, to be sold, or that machinery and equipment 3
677	677	used in the furnishing of power to an industrial manufacturing plant. For the purposes of this 4
678	678	subdivision, “industrial plant” means a factory at a fixed location primarily engaged in the 5
679	679	manufacture, conversion, or processing of tangible personal property to be sold in the regular 6
680	680	course of business; 7
681	681	(ii) Machinery and equipment and related items are not deemed to be used in connection 8
682	682	with the actual manufacture, conversion, or processing of tangible personal property, or in 9
683	683	connection with the actual manufacture, conversion, or processing of computer software as that 10
684	684	term is utilized in industry numbers 7371, 7372, and 7373 in the standard industrial classification 11
685	685	manual prepared by the Technical Committee on Industrial Classification, Office of Statistical 12
686	686	Standards, Executive Office of the President, United States Bureau of the Budget, as revised from 13
687	687	time to time, to be sold to the extent the property is used in administration or distribution operations; 14
688	688	(iii) Machinery and equipment and related items used in connection with the actual 15
689	689	manufacture, conversion, or processing of any computer software or any tangible personal property 16
690	690	that is not to be sold and that would be exempt under subdivision (7) or this subdivision if purchased 17
691	691	from a vendor or machinery and equipment and related items used during any manufacturing, 18
692	692	converting, or processing function is exempt under this subdivision even if that operation, function, 19
693	693	or purpose is not an integral or essential part of a continuous production flow or manufacturing 20
694	694	process; 21
695	695	(iv) Where a portion of a group of portable or mobile machinery is used in connection with 22
696	696	the actual manufacture, conversion, or processing of computer software or tangible personal 23
697	697	property to be sold, as previously defined, that portion, if otherwise qualifying, is exempt under 24
698	698	this subdivision even though the machinery in that group is used interchangeably and not otherwise 25
699	699	identifiable as to use. 26
700	700	(23) Trade-in value of motor vehicles. From the sale and from the storage, use, or other 27
701	701	consumption in this state of so much of the purchase price paid for a new or used automobile as is 28
702	702	allocated for a trade-in allowance on the automobile of the buyer given in trade to the seller, or of 29
703	703	the proceeds applicable only to the automobile as are received from the manufacturer of 30
704	704	automobiles for the repurchase of the automobile whether the repurchase was voluntary or not 31
705	705	towards the purchase of a new or used automobile by the buyer. For the purpose of this subdivision, 32
706	706	the word “automobile” means a private passenger automobile not used for hire and does not refer 33
707	707	to any other type of motor vehicle. 34
708	708
709	709
710	710	LC000879 - Page 20 of 30
711	711	(24) Precious metal bullion. 1
712	712	(i) From the sale and from the storage, use, or other consumption in this state of precious 2
713	713	metal bullion, substantially equivalent to a transaction in securities or commodities. 3
714	714	(ii) For purposes of this subdivision, “precious metal bullion” means any elementary 4
715	715	precious metal that has been put through a process of smelting or refining, including, but not limited 5
716	716	to: gold, silver, platinum, rhodium, and chromium, and that is in a state or condition that its value 6
717	717	depends upon its content and not upon its form. 7
718	718	(iii) The term does not include fabricated precious metal that has been processed or 8
719	719	manufactured for some one or more specific and customary industrial, professional, or artistic uses. 9
720	720	(25) Commercial vessels. From sales made to a commercial ship, barge, or other vessel of 10
721	721	fifty (50) tons burden or over, primarily engaged in interstate or foreign commerce, and from the 11
722	722	repair, alteration, or conversion of the vessels, and from the sale of property purchased for the use 12
723	723	of the vessels including provisions, supplies, and material for the maintenance and/or repair of the 13
724	724	vessels. 14
725	725	(26) Commercial fishing vessels. From the sale and from the storage, use, or other 15
726	726	consumption in this state of vessels and other watercraft that are in excess of five (5) net tons and 16
727	727	that are used exclusively for “commercial fishing,” as defined in this subdivision, and from the 17
728	728	repair, alteration, or conversion of those vessels and other watercraft, and from the sale of property 18
729	729	purchased for the use of those vessels and other watercraft including provisions, supplies, and 19
730	730	material for the maintenance and/or repair of the vessels and other watercraft and the boats nets, 20
731	731	cables, tackle, and other fishing equipment appurtenant to or used in connection with the 21
732	732	commercial fishing of the vessels and other watercraft. “Commercial fishing” means taking or 22
733	733	attempting to take any fish, shellfish, crustacea, or bait species with the intent of disposing of it for 23
734	734	profit or by sale, barter, trade, or in commercial channels. The term does not include subsistence 24
735	735	fishing, i.e., the taking for personal use and not for sale or barter; or sport fishing; but shall include 25
736	736	vessels and other watercraft with a Rhode Island party and charter boat license issued by the 26
737	737	department of environmental management pursuant to § 20-2-27.1 that meet the following criteria: 27
738	738	(i) The operator must have a current United States Coast Guard (U.S.C.G.) license to carry 28
739	739	passengers for hire; (ii) U.S.C.G. vessel documentation in the coast wide fishery trade; (iii) 29
740	740	U.S.C.G. vessel documentation as to proof of Rhode Island home port status or a Rhode Island boat 30
741	741	registration to prove Rhode Island home port status; and (iv) The vessel must be used as a 31
742	742	commercial passenger carrying fishing vessel to carry passengers for fishing. The vessel must be 32
743	743	able to demonstrate that at least fifty percent (50%) of its annual gross income derives from charters 33
744	744	or provides documentation of a minimum of one hundred (100) charter trips annually; and (v) The 34
745	745
746	746
747	747	LC000879 - Page 21 of 30
748	748	vessel must have a valid Rhode Island party and charter boat license. The tax administrator shall 1
749	749	implement the provisions of this subdivision by promulgating rules and regulations relating thereto. 2
750	750	(27) Clothing and footwear. From the sales of articles of clothing, including footwear, 3
751	751	intended to be worn or carried on or about the human body for sales prior to October 1, 2012. 4
752	752	Effective October 1, 2012, the exemption will apply to the sales of articles of clothing, including 5
753	753	footwear, intended to be worn or carried on or about the human body up to two hundred and fifty 6
754	754	dollars ($250) of the sales price per item. For the purposes of this section, “clothing or footwear” 7
755	755	does not include clothing accessories or equipment or special clothing or footwear primarily 8
756	756	designed for athletic activity or protective use as these terms are defined in § 44-18-7.1(f). In 9
757	757	recognition of the work being performed by the streamlined sales and use tax governing board, 10
758	758	upon passage of any federal law that authorizes states to require remote sellers to collect and remit 11
759	759	sales and use taxes, this unlimited exemption will apply as it did prior to October 1, 2012. The 12
760	760	unlimited exemption on sales of clothing and footwear shall take effect on the date that the state 13
761	761	requires remote sellers to collect and remit sales and use taxes. 14
762	762	(28) Water for residential use. From the sale and from the storage, use, or other 15
763	763	consumption in this state of water furnished for domestic use by occupants of residential premises. 16
764	764	(29) Bibles. [Unconstitutional; see Ahlburn v. Clark, 728 A.2d 449 (R.I. 1999); see Notes 17
765	765	to Decisions.] From the sale and from the storage, use, or other consumption in the state of any 18
766	766	canonized scriptures of any tax-exempt nonprofit religious organization including, but not limited 19
767	767	to, the Old Testament and the New Testament versions. 20
768	768	(30) Boats. 21
769	769	(i) From the sale of a boat or vessel to a bona fide nonresident of this state who does not 22
770	770	register the boat or vessel in this state or document the boat or vessel with the United States 23
771	771	government at a home port within the state, whether the sale or delivery of the boat or vessel is 24
772	772	made in this state or elsewhere; provided, that the nonresident transports the boat within thirty (30) 25
773	773	days after delivery by the seller outside the state for use thereafter solely outside the state. 26
774	774	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 27
775	775	require the seller of the boat or vessel to keep records of the sales to bona fide nonresidents as the 28
776	776	tax administrator deems reasonably necessary to substantiate the exemption provided in this 29
777	777	subdivision, including the affidavit of the seller that the buyer represented himself or herself to be 30
778	778	a bona fide nonresident of this state and of the buyer that he or she is a nonresident of this state. 31
779	779	(31) Youth activities equipment. From the sale, storage, use, or other consumption in this 32
780	780	state of items for not more than twenty dollars ($20.00) each by nonprofit Rhode Island 33
781	781	eleemosynary organizations, for the purposes of youth activities that the organization is formed to 34
782	782
783	783
784	784	LC000879 - Page 22 of 30
785	785	sponsor and support; and by accredited elementary and secondary schools for the purposes of the 1
786	786	schools or of organized activities of the enrolled students. 2
787	787	(32) Farm equipment. From the sale and from the storage or use of machinery and 3
788	788	equipment used directly for commercial farming and agricultural production; including, but not 4
789	789	limited to: tractors, ploughs, harrows, spreaders, seeders, milking machines, silage conveyors, 5
790	790	balers, bulk milk storage tanks, trucks with farm plates, mowers, combines, irrigation equipment, 6
791	791	greenhouses and greenhouse coverings, graders and packaging machines, tools and supplies and 7
792	792	other farming equipment, including replacement parts appurtenant to or used in connection with 8
793	793	commercial farming and tools and supplies used in the repair and maintenance of farming 9
794	794	equipment. “Commercial farming” means the keeping or boarding of five (5) or more horses or the 10
795	795	production within this state of agricultural products, including, but not limited to, field or orchard 11
796	796	crops, livestock, dairy, and poultry, or their products, where the keeping, boarding, or production 12
797	797	provides at least two thousand five hundred dollars ($2,500) in annual gross sales to the operator, 13
798	798	whether an individual, a group, a partnership, or a corporation for exemptions issued prior to July 14
799	799	1, 2002. For exemptions issued or renewed after July 1, 2002, there shall be two (2) levels. Level I 15
800	800	shall be based on proof of annual, gross sales from commercial farming of at least twenty-five 16
801	801	hundred dollars ($2,500) and shall be valid for purchases subject to the exemption provided in this 17
802	802	subdivision except for motor vehicles with an excise tax value of five thousand dollars ($5,000) or 18
803	803	greater. Level II shall be based on proof of annual gross sales from commercial farming of at least 19
804	804	ten thousand dollars ($10,000) or greater and shall be valid for purchases subject to the exemption 20
805	805	provided in this subdivision including motor vehicles with an excise tax value of five thousand 21
806	806	dollars ($5,000) or greater. For the initial issuance of the exemptions, proof of the requisite amount 22
807	807	of annual gross sales from commercial farming shall be required for the prior year; for any renewal 23
808	808	of an exemption granted in accordance with this subdivision at either level I or level II, proof of 24
809	809	gross annual sales from commercial farming at the requisite amount shall be required for each of 25
810	810	the prior two (2) years. Certificates of exemption issued or renewed after July 1, 2002, shall clearly 26
811	811	indicate the level of the exemption and be valid for four (4) years after the date of issue. This 27
812	812	exemption applies even if the same equipment is used for ancillary uses, or is temporarily used for 28
813	813	a non-farming or a non-agricultural purpose, but shall not apply to motor vehicles acquired after 29
814	814	July 1, 2002, unless the vehicle is a farm vehicle as defined pursuant to § 31-1-8 and is eligible for 30
815	815	registration displaying farm plates as provided for in § 31-3-31. 31
816	816	(33) Compressed air. From the sale and from the storage, use, or other consumption in the 32
817	817	state of compressed air. 33
818	818	(34) Flags. From the sale and from the storage, consumption, or other use in this state of 34
819	819
820	820
821	821	LC000879 - Page 23 of 30
822	822	United States, Rhode Island or POW-MIA flags. 1
823	823	(35) Motor vehicle and adaptive equipment to certain veterans. From the sale of a motor 2
824	824	vehicle and adaptive equipment to and for the use of a veteran with a service-connected loss of or 3
825	825	the loss of use of a leg, foot, hand, or arm, or any veteran who is a double amputee, whether service 4
826	826	connected or not. The motor vehicle must be purchased by and especially equipped for use by the 5
827	827	qualifying veteran. Certificate of exemption or refunds of taxes paid is granted under rules or 6
828	828	regulations that the tax administrator may prescribe. 7
829	829	(36) Textbooks. From the sale and from the storage, use, or other consumption in this state 8
830	830	of textbooks by an “educational institution,” as defined in subsection (18) of this section, and any 9
831	831	educational institution within the purview of § 16-63-9(4), and used textbooks by any purveyor. 10
832	832	(37) Tangible personal property and supplies used in on-site hazardous waste recycling, 11
833	833	reuse, or treatment. From the sale, storage, use, or other consumption in this state of tangible 12
834	834	personal property or supplies used or consumed in the operation of equipment, the exclusive 13
835	835	function of which is the recycling, reuse, or recovery of materials (other than precious metals, as 14
836	836	defined in subdivision (24)(ii) of this section) from the treatment of “hazardous wastes,” as defined 15
837	837	in § 23-19.1-4, where the “hazardous wastes” are generated in Rhode Island solely by the same 16
838	838	taxpayer and where the personal property is located at, in, or adjacent to a generating facility of the 17
839	839	taxpayer in Rhode Island. The taxpayer shall procure an order from the director of the department 18
840	840	of environmental management certifying that the equipment and/or supplies as used or consumed, 19
841	841	qualify for the exemption under this subdivision. If any information relating to secret processes or 20
842	842	methods of manufacture, production, or treatment is disclosed to the department of environmental 21
843	843	management only to procure an order, and is a “trade secret” as defined in § 28-21-10(b), it is not 22
844	844	open to public inspection or publicly disclosed unless disclosure is required under chapter 21 of 23
845	845	title 28 or chapter 24.4 of title 23. 24
846	846	(38) Promotional and product literature of boat manufacturers. From the sale and from the 25
847	847	storage, use, or other consumption of promotional and product literature of boat manufacturers 26
848	848	shipped to points outside of Rhode Island that either: (i) Accompany the product that is sold; (ii) 27
849	849	Are shipped in bulk to out-of-state dealers for use in the sale of the product; or (iii) Are mailed to 28
850	850	customers at no charge. 29
851	851	(39) Food items paid for by food stamps. From the sale and from the storage, use, or other 30
852	852	consumption in this state of eligible food items payment for which is properly made to the retailer 31
853	853	in the form of U.S. government food stamps issued in accordance with the Food Stamp Act of 1977, 32
854	854	7 U.S.C. § 2011 et seq. 33
855	855	(40) Transportation charges. From the sale or hiring of motor carriers as defined in § 39-34
856	856
857	857
858	858	LC000879 - Page 24 of 30
859	859	12-2(12) to haul goods, when the contract or hiring cost is charged by a motor freight tariff filed 1
860	860	with the Rhode Island public utilities commission on the number of miles driven or by the number 2
861	861	of hours spent on the job. 3
862	862	(41) Trade-in value of boats. From the sale and from the storage, use, or other consumption 4
863	863	in this state of so much of the purchase price paid for a new or used boat as is allocated for a trade-5
864	864	in allowance on the boat of the buyer given in trade to the seller or of the proceeds applicable only 6
865	865	to the boat as are received from an insurance claim as a result of a stolen or damaged boat, towards 7
866	866	the purchase of a new or used boat by the buyer. 8
867	867	(42) Equipment used for research and development. From the sale and from the storage, 9
868	868	use, or other consumption of equipment to the extent used for research and development purposes 10
869	869	by a qualifying firm. For the purposes of this subsection, “qualifying firm” means a business for 11
870	870	which the use of research and development equipment is an integral part of its operation and 12
871	871	“equipment” means scientific equipment, computers, software, and related items. 13
872	872	(43) Coins. From the sale and from the other consumption in this state of coins having 14
873	873	numismatic or investment value. 15
874	874	(44) Farm structure construction materials. Lumber, hardware, and other materials used in 16
875	875	the new construction of farm structures, including production facilities such as, but not limited to: 17
876	876	farrowing sheds, free stall and stanchion barns, milking parlors, silos, poultry barns, laying houses, 18
877	877	fruit and vegetable storages, rooting cellars, propagation rooms, greenhouses, packing rooms, 19
878	878	machinery storage, seasonal farm worker housing, certified farm markets, bunker and trench silos, 20
879	879	feed storage sheds, and any other structures used in connection with commercial farming. 21
880	880	(45) Telecommunications carrier access service. Carrier access service or 22
881	881	telecommunications service when purchased by a telecommunications company from another 23
882	882	telecommunications company to facilitate the provision of telecommunications service. 24
883	883	(46) Boats or vessels brought into the state exclusively for winter storage, maintenance, 25
884	884	repair, or sale. Notwithstanding the provisions of §§ 44-18-10, 44-18-11 and 44-18-20, the tax 26
885	885	imposed by § 44-18-20 is not applicable for the period commencing on the first day of October in 27
886	886	any year up to and including the 30th day of April next succeeding with respect to the use of any 28
887	887	boat or vessel within this state exclusively for purposes of: (i) Delivery of the vessel to a facility in 29
888	888	this state for storage, including dry storage and storage in water by means of apparatus preventing 30
889	889	ice damage to the hull, maintenance, or repair; (ii) The actual process of storage, maintenance, or 31
890	890	repair of the boat or vessel; or (iii) Storage for the purpose of selling the boat or vessel. 32
891	891	(47) Jewelry display product. From the sale and from the storage, use, or other 33
892	892	consumption in this state of tangible personal property used to display any jewelry product; 34
893	893
894	894
895	895	LC000879 - Page 25 of 30
896	896	provided that title to the jewelry display product is transferred by the jewelry manufacturer or seller 1
897	897	and that the jewelry display product is shipped out of state for use solely outside the state and is not 2
898	898	returned to the jewelry manufacturer or seller. 3
899	899	(48) Boats or vessels generally. Notwithstanding the provisions of this chapter, the tax 4
900	900	imposed by §§ 44-18-20 and 44-18-18 shall not apply with respect to the sale and to the storage, 5
901	901	use, or other consumption in this state of any new or used boat. The exemption provided for in this 6
902	902	subdivision does not apply after October 1, 1993, unless prior to October 1, 1993, the federal ten 7
903	903	percent (10%) surcharge on luxury boats is repealed. 8
904	904	(49) Banks and regulated investment companies interstate toll-free calls. Notwithstanding 9
905	905	the provisions of this chapter, the tax imposed by this chapter does not apply to the furnishing of 10
906	906	interstate and international, toll-free terminating telecommunication service that is used directly 11
907	907	and exclusively by or for the benefit of an eligible company as defined in this subdivision; provided 12
908	908	that an eligible company employs on average during the calendar year no less than five hundred 13
909	909	(500) “full-time equivalent employees” as that term is defined in § 42-64.5-2. For purposes of this 14
910	910	section, an “eligible company” means a “regulated investment company” as that term is defined in 15
911	911	the Internal Revenue Code of 1986, 26 U.S.C. § 851, or a corporation to the extent the service is 16
912	912	provided, directly or indirectly, to or on behalf of a regulated investment company, an employee 17
913	913	benefit plan, a retirement plan or a pension plan, or a state-chartered bank. 18
914	914	(50) Mobile and manufactured homes generally. From the sale and from the storage, use, 19
915	915	or other consumption in this state of mobile and/or manufactured homes as defined and subject to 20
916	916	taxation pursuant to the provisions of chapter 44 of title 31. 21
917	917	(51) Manufacturing business reconstruction materials. 22
918	918	(i) From the sale and from the storage, use, or other consumption in this state of lumber, 23
919	919	hardware, and other building materials used in the reconstruction of a manufacturing business 24
920	920	facility that suffers a disaster, as defined in this subdivision, in this state. “Disaster” means any 25
921	921	occurrence, natural or otherwise, that results in the destruction of sixty percent (60%) or more of 26
922	922	an operating manufacturing business facility within this state. “Disaster” does not include any 27
923	923	damage resulting from the willful act of the owner of the manufacturing business facility. 28
924	924	(ii) Manufacturing business facility includes, but is not limited to, the structures housing 29
925	925	the production and administrative facilities. 30
926	926	(iii) In the event a manufacturer has more than one manufacturing site in this state, the sixty 31
927	927	percent (60%) provision applies to the damages suffered at that one site. 32
928	928	(iv) To the extent that the costs of the reconstruction materials are reimbursed by insurance, 33
929	929	this exemption does not apply. 34
930	930
931	931
932	932	LC000879 - Page 26 of 30
933	933	(52) Tangible personal property and supplies used in the processing or preparation of floral 1
934	934	products and floral arrangements. From the sale, storage, use, or other consumption in this state of 2
935	935	tangible personal property or supplies purchased by florists, garden centers, or other like producers 3
936	936	or vendors of flowers, plants, floral products, and natural and artificial floral arrangements that are 4
937	937	ultimately sold with flowers, plants, floral products, and natural and artificial floral arrangements 5
938	938	or are otherwise used in the decoration, fabrication, creation, processing, or preparation of flowers, 6
939	939	plants, floral products, or natural and artificial floral arrangements, including descriptive labels, 7
940	940	stickers, and cards affixed to the flower, plant, floral product, or arrangement, artificial flowers, 8
941	941	spray materials, floral paint and tint, plant shine, flower food, insecticide, and fertilizers. 9
942	942	(53) Horse food products. From the sale and from the storage, use, or other consumption 10
943	943	in this state of horse food products purchased by a person engaged in the business of the boarding 11
944	944	of horses. 12
945	945	(54) Non-motorized recreational vehicles sold to nonresidents. 13
946	946	(i) From the sale, subsequent to June 30, 2003, of a non-motorized recreational vehicle to 14
947	947	a bona fide nonresident of this state who does not register the non-motorized recreational vehicle 15
948	948	in this state, whether the sale or delivery of the non-motorized recreational vehicle is made in this 16
949	949	state or at the place of residence of the nonresident; provided that a non-motorized recreational 17
950	950	vehicle sold to a bona fide nonresident whose state of residence does not allow a like exemption to 18
951	951	its nonresidents is not exempt from the tax imposed under § 44-18-20; provided, further, that in 19
952	952	that event the bona fide nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate 20
953	953	that would be imposed in his or her state of residence not to exceed the rate that would have been 21
954	954	imposed under § 44-18-20. Notwithstanding any other provisions of law, a licensed, non-motorized 22
955	955	recreational vehicle dealer shall add and collect the tax required under this subdivision and remit 23
956	956	the tax to the tax administrator under the provisions of chapters 18 and 19 of this title. Provided, 24
957	957	that when a Rhode Island licensed, non-motorized recreational vehicle dealer is required to add and 25
958	958	collect the sales and use tax on the sale of a non-motorized recreational vehicle to a bona fide 26
959	959	nonresident as provided in this section, the dealer in computing the tax takes into consideration the 27
960	960	law of the state of the nonresident as it relates to the trade-in of motor vehicles. 28
961	961	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 29
962	962	require any licensed, non-motorized recreational vehicle dealer to keep records of sales to bona fide 30
963	963	nonresidents as the tax administrator deems reasonably necessary to substantiate the exemption 31
964	964	provided in this subdivision, including the affidavit of a licensed, non-motorized recreational 32
965	965	vehicle dealer that the purchaser of the non-motorized recreational vehicle was the holder of, and 33
966	966	had in his or her possession a valid out-of-state non-motorized recreational vehicle registration or 34
967	967
968	968
969	969	LC000879 - Page 27 of 30
970	970	a valid out-of-state driver’s license. 1
971	971	(iii) Any nonresident who registers a non-motorized recreational vehicle in this state within 2
972	972	ninety (90) days of the date of its sale to him or her is deemed to have purchased the non-motorized 3
973	973	recreational vehicle for use, storage, or other consumption in this state, and is subject to, and liable 4
974	974	for, the use tax imposed under the provisions of § 44-18-20. 5
975	975	(iv) “Non-motorized recreational vehicle” means any portable dwelling designed and 6
976	976	constructed to be used as a temporary dwelling for travel, camping, recreational, and vacation use 7
977	977	that is eligible to be registered for highway use, including, but not limited to, “pick-up coaches” or 8
978	978	“pick-up campers,” “travel trailers,” and “tent trailers” as those terms are defined in chapter 1 of 9
979	979	title 31. 10
980	980	(55) Sprinkler and fire alarm systems in existing buildings. From the sale in this state of 11
981	981	sprinkler and fire alarm systems; emergency lighting and alarm systems; and the materials 12
982	982	necessary and attendant to the installation of those systems that are required in buildings and 13
983	983	occupancies existing therein in July 2003 in order to comply with any additional requirements for 14
984	984	such buildings arising directly from the enactment of the Comprehensive Fire Safety Act of 2003 15
985	985	and that are not required by any other provision of law or ordinance or regulation adopted pursuant 16
986	986	to that act. The exemption provided in this subdivision shall expire on December 31, 2008. 17
987	987	(56) Aircraft. Notwithstanding the provisions of this chapter, the tax imposed by §§ 44-18
988	988	18-18 and 44-18-20 shall not apply with respect to the sale and to the storage, use, or other 19
989	989	consumption in this state of any new or used aircraft or aircraft parts. 20
990	990	(57) Renewable energy products. Notwithstanding any other provisions of Rhode Island 21
991	991	general laws, the following products shall also be exempt from sales tax: solar photovoltaic 22
992	992	modules or panels, or any module or panel that generates electricity from light; solar thermal 23
993	993	collectors, including, but not limited to, those manufactured with flat glass plates, extruded plastic, 24
994	994	sheet metal, and/or evacuated tubes; geothermal heat pumps, including both water-to-water and 25
995	995	water-to-air type pumps; wind turbines; towers used to mount wind turbines if specified by or sold 26
996	996	by a wind turbine manufacturer; DC to AC inverters that interconnect with utility power lines; and 27
997	997	manufactured mounting racks and ballast pans for solar collector, module, or panel installation. Not 28
998	998	to include materials that could be fabricated into such racks; monitoring and control equipment, if 29
999	999	specified or supplied by a manufacturer of solar thermal, solar photovoltaic, geothermal, or wind 30
1000	1000	energy systems or if required by law or regulation for such systems but not to include pumps, fans 31
1001	1001	or plumbing or electrical fixtures unless shipped from the manufacturer affixed to, or an integral 32
1002	1002	part of, another item specified on this list; and solar storage tanks that are part of a solar domestic 33
1003	1003	hot water system or a solar space heating system. If the tank comes with an external heat exchanger 34
1004	1004
1005	1005
1006	1006	LC000879 - Page 28 of 30
1007	1007	it shall also be tax exempt, but a standard hot water tank is not exempt from state sales tax. 1
1008	1008	(58) Returned property. The amount charged for property returned by customers upon 2
1009	1009	rescission of the contract of sale when the entire amount exclusive of handling charges paid for the 3
1010	1010	property is refunded in either cash or credit, and where the property is returned within one hundred 4
1011	1011	twenty (120) days from the date of delivery. 5
1012	1012	(59) Dietary supplements. From the sale and from the storage, use, or other consumption 6
1013	1013	of dietary supplements as defined in § 44-18-7.1(l)(v), sold on prescriptions. 7
1014	1014	(60) Blood. From the sale and from the storage, use, or other consumption of human blood. 8
1015	1015	(61) Agricultural products for human consumption. From the sale and from the storage, 9
1016	1016	use, or other consumption of livestock and poultry of the kinds of products that ordinarily constitute 10
1017	1017	food for human consumption and of livestock of the kind the products of which ordinarily constitute 11
1018	1018	fibers for human use. 12
1019	1019	(62) Diesel emission control technology. From the sale and use of diesel retrofit 13
1020	1020	technology that is required by § 31-47.3-4. 14
1021	1021	(63) Feed for certain animals used in commercial farming. From the sale of feed for 15
1022	1022	animals as described in subsection (61) of this section. 16
1023	1023	(64) Alcoholic beverages. From the sale and storage, use, or other consumption in this 17
1024	1024	state by a Class A licensee of alcoholic beverages, as defined in § 44-18-7.1, excluding beer and 18
1025	1025	malt beverages; provided, further, notwithstanding § 6-13-1 or any other general or public law to 19
1026	1026	the contrary, alcoholic beverages, as defined in § 44-18-7.1, shall not be subject to minimum 20
1027	1027	markup. 21
1028	1028	(65) Seeds and plants used to grow food and food ingredients. From the sale, storage, use, 22
1029	1029	or other consumption in this state of seeds and plants used to grow food and food ingredients as 23
1030	1030	defined in § 44-18-7.1(l)(i). “Seeds and plants used to grow food and food ingredients” shall not 24
1031	1031	include marijuana seeds or plants. 25
1032	1032	(66) Feminine hygiene products. From the sale and from the storage, use, or other 26
1033	1033	consumption of tampons, panty liners, menstrual cups, sanitary napkins, and other similar products 27
1034	1034	the principal use of which is feminine hygiene in connection with the menstrual cycle. 28
1035	1035	(67) “Breast pump collection and storage supplies” means items of tangible personal 29
1036	1036	property used in conjunction with a breast pump to collect milk expressed from a human breast and 30
1037	1037	to store collected milk until it is ready for consumption. “Breast pump collection and storage 31
1038	1038	supplies” include, but are not limited to, breast shields and breast shield connectors; breast pump 32
1039	1039	tubes and tubing adaptors; breast pump valves and membranes; backflow protectors and backflow 33
1040	1040	protector adaptors; bottles and bottle caps specific to the operation of the breast pump; breast milk 34
1041	1041
1042	1042
1043	1043	LC000879 - Page 29 of 30
1044	1044	storage bags; and related items sold as part of a breast pump kit pre-packaged by the breast pump 1
1045	1045	manufacturer. “Breast pump collection and storage supplies” does not include: bottles and bottle 2
1046	1046	caps not specific to the operation of the breast pump; breast pump travel bags and other similar 3
1047	1047	carrying accessories, including ice packs, labels, and other similar products, unless sold as part of 4
1048	1048	a breast pump kit pre-packed by the breast pump manufacturer; breast pump cleaning supplies, 5
1049	1049	unless sold as part of a breast pump kit pre-packaged by the breast pump manufacturer; nursing 6
1050	1050	bras, bra pads, breast shells, and other similar products; and creams, ointments, and other similar 7
1051	1051	products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples. 8
1052	1052	(68) Trade-in value of motorcycles. From the sale and from the storage, use, or other 9
1053	1053	consumption in this state of so much of the purchase price paid for a new or used motorcycle as is 10
1054	1054	allocated for a trade-in allowance on the motorcycle of the buyer given in trade to the seller, or of 11
1055	1055	the proceeds applicable only to the motorcycle as are received from the manufacturer of 12
1056	1056	motorcycles for the repurchase of the motorcycle whether the repurchase was voluntary or not 13
1057	1057	towards the purchase of a new or used motorcycle by the buyer. For the purpose of this subsection, 14
1058	1058	the word “motorcycle” means a motorcycle not used for hire and does not refer to any other type 15
1059	1059	of motor vehicle. 16
1060	1060	SECTION 3. This act shall take effect upon passage. 17
1061	1061	========
1062	1062	LC000879
1063	1063	========
1064	1064
1065	1065
1066	1066	LC000879 - Page 30 of 30
1067	1067	EXPLANATION
1068	1068	BY THE LEGISLATIVE COUNCIL
1069	1069	OF
1070	1070	A N A C T
1071	1071	RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND
1072	1072	COMPUTATION
1073	1073	***
1074	1074	This act would exempt from the sales and use tax, the sale of beer and malt beverages at 1
1075	1075	retail. 2
1076	1076	This act would take effect upon passage. 3
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1078	1078	LC000879
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1080	1080