Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0679 Compare Versions

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

Old	New	Differences
1	1
2	2
3	3
4	4
5	5	2025 -- S 0679
6	6	========
7	7	LC000963
8	8	========
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 AGRICULTURE AND FORESTRY -- FORESTRY AND FOREST PARITY
16	16	ACT
17	17	Introduced By: Senator Jacob Bissaillon
18	18	Date Introduced: March 07, 2025
19	19	Referred To: Senate Finance
20	20
21	21
22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Legislative findings. 1
24	24	The general assembly finds and declares: 2
25	25	(1) That maintaining forests is vital to maintain both biodiversity, and ecosystem services, 3
26	26	including carbon sequestration in the state; 4
27	27	(2) That forests are more likely to be maintained if they provide economic value; 5
28	28	(3) That providing for the economic viability of the forest products industry is an interest 6
29	29	of the state; 7
30	30	(4) That forest conservation is given the same status as farm and open space conservation 8
31	31	under chapter 27 of title 44 ("taxation of farm, forest, and open space land"); however, elsewhere 9
32	32	in the general laws, forestry, and the production of forest products, are not given the same benefits, 10
33	33	including protections from taxation, and protections as agriculture; and 11
34	34	(5) That it is in the interest of the state, in order to protect economic viability of forests and 12
35	35	to provide for their conservation for the future benefit and enjoyment of the people of the state. 13
36	36	SECTION 2. Title 2 of the General Laws entitled "AGRICULTURE AND FORESTRY" 14
37	37	is hereby amended by adding thereto the following chapter: 15
38	38	CHAPTER 27.1 16
39	39	FORESTRY AND FOREST PARITY ACT 17
40	40	2-27.1-1. Short title. 18
41	41
42	42
43	43	LC000963 - Page 2 of 29
44	44	This chapter shall be known and may be cited as the "Forestry Parity Act." 1
45	45	2-27.1-2. Purpose. 2
46	46	It is the purpose of this chapter to provide parity of treatment, under the law, with farming 3
47	47	and agriculture operations, to forestry and forest product operations. 4
48	48	2-27.1-3. Definitions. 5
49	49	When used in this chapter, the following words and phrases are construed as follows: 6
50	50	(1) "Forest-based business" shall have the same meaning as defined in § 2-27-2. 7
51	51	(2) "Forest land" shall have the same meaning as defined in § 2-27-2. 8
52	52	(3) "Forest management" shall have the same meaning as defined in § 2-27-2. 9
53	53	(4) "Forest product operations" means any and all trade occupations involving the 10
54	54	harvesting, production, maintaining, and sale of forest products originating in the state, including, 11
55	55	but not limited to: 12
56	56	(i) Arboriculture and logging; and 13
57	57	(ii) Kiln drying, operations of firewood, saw milling, lumber, pallets, biochar, mulch, 14
58	58	compost, biomass, wood chips, saw dust, timbers, posts, beams, shingles, and artisan tree carvings, 15
59	59	seasonal greens and berries. 16
60	60	(5) "Forest property owner" means a person who owns "forest land" or leases "forest land" 17
61	61	for a period of five (5) years or more, which lease permits the conduct of some or all "forest product 18
62	62	operations" on the "forest land". 19
63	63	(6) "Person" shall have the same meaning as defined in § 43-3-6. 20
64	64	2-27.1-4. Declaration of policies. 21
65	65	The general assembly finds and declares that it is the policy of the state to promote an 22
66	66	environment in which forest operations and forest-based businesses are safeguarded against 23
67	67	nuisance actions arising out of conflicts between forestry operations and urban and suburban land 24
68	68	uses, in a manner consistent with the provisions of chapter 23 of title 2 ("right to farm act"), and to 25
69	69	protect forest landowners with forest management plans from state administrative actions and 26
70	70	regulations above and beyond the restrictions on farms and agricultural operations on the same 27
71	71	subject. 28
72	72	2-27.1-5. Intentional and negligent actions. 29
73	73	The provisions of § 2-27.1-5 do not apply to forestry operations conducted in a malicious 30
74	74	or negligent manner, or to forestry operations conducted in violation of federal or state law. 31
75	75	SECTION 3. Chapter 31-1 of the General Laws entitled "Definitions and General Code 32
76	76	Provisions" is hereby amended by adding thereto the following section: 33
77	77	31-1-8.1. Forestry vehicle. 34
78	78
79	79
80	80	LC000963 - Page 3 of 29
81	81	"Forestry vehicle" means every vehicle which is designed for and used for forest product 1
82	82	operations purposes, as defined in § 2-27.1-4, and used by the owner of the vehicle or family 2
83	83	member(s) or employee(s) or designees of the owner, in the conduct of the owner's forestry product 3
84	84	operations, which use shall include the delivery of forest products produced by the forester but shall 4
85	85	not include commercial hire for non-forestry product operation uses, including, but not limited to, 5
86	86	hauling of sand and gravel, snow plowing, other than directly on the vehicle owner's forest land. 6
87	87	For an owner to qualify as having forestry purposes, the owner shall provide evidence that the 7
88	88	owner meets the requirements of § 44-18-30. 8
89	89	SECTION 4. Chapter 31-3 of the General Laws entitled "Registration of Vehicles" is 9
90	90	hereby amended by adding thereto the following section: 10
91	91	31-3-31.4. Registration of forestry vehicles -- Use of farm plates. 11
92	92	Forestry vehicles, as defined in § 31-1-8.1, equipped with rubber tires while being used in 12
93	93	forestry and operated on highways, shall be registered on a form furnished by the administrator of 13
94	94	the division of motor vehicles and shall be assigned a special number farm plate pursuant to the 14
95	95	provisions of § 31-3-31 with a suitable symbol or letter indicating the usage of the forestry vehicle. 15
96	96	SECTION 5. Section 42-64-5 of the General Laws in Chapter 42-64 entitled "Rhode Island 16
97	97	Commerce Corporation" is hereby amended to read as follows: 17
98	98	42-64-5. Purposes. 18
99	99	The Rhode Island commerce corporation is authorized, created, and established to be an 19
100	100	agency under the jurisdiction of the state’s lead agency for economic development, the executive 20
101	101	office of commerce, and to be the operating agency of the state to carry out the policies and 21
102	102	procedure as established by the secretary, governor, and the board of directors for the following 22
103	103	purposes: 23
104	104	(1) To promote and encourage the preservation, expansion, and sound development of new 24
105	105	and existing industry, business, commerce, agriculture, forestry, tourism, and recreational facilities 25
106	106	in the state, which will promote the economic development of the state and the general welfare of 26
107	107	its citizens; and 27
108	108	(2) With respect to real property other than federal land or land related to federal land, to 28
109	109	undertake any project, except a residential facility; and 29
110	110	(3) With respect to federal land or land related to federal land, to undertake any project, 30
111	111	except as those responsibilities are assigned to the Quonset Development Corporation; and 31
112	112	(4) To create an organization that is responsive to the needs and interests of businesses of 32
113	113	all sizes within the state of Rhode Island and to be structured to be customer centric to enhance 33
114	114	commerce in the state utilizing all available resources. 34
115	115
116	116
117	117	LC000963 - Page 4 of 29
118	118	SECTION 6. Section 44-5-12.1 of the General Laws in Chapter 44-5 entitled "Levy and 1
119	119	Assessment of Local Taxes" is hereby amended to read as follows: 2
120	120	44-5-12.1. Assessment of tangible personal property. 3
121	121	(a) All tangible personal property subject to taxation shall be assessed for taxation based 4
122	122	on the original purchase price (new or used) including all costs such as freight and installation. 5
123	123	Assets will be classified and depreciated as defined in this section. 6
124	124	(b) The following classification and depreciation table shall be used in determining the 7
125	125	assessed value of tangible personal property. 8
126	126	State of Rhode Island Tangible Property Classification 9
127	127	Class I Class II Class III 10
128	128	Class of Assets Short Life Mid-Life Long Life 11
129	129	Age 1-5 yrs 6-12 yrs 13+ yrs 12
130	130	1 95 95 95 13
131	131	2 80 90 90 14
132	132	3 60 80 85 15
133	133	4 30 70 80 16
134	134	5 20 60 75 17
135	135	6 20 50 70 18
136	136	7 20 40 65 19
137	137	8 20 30 60 20
138	138	9 20 30 55 21
139	139	10 20 30 50 22
140	140	11 20 30 45 23
141	141	12 20 30 40 24
142	142	13 20 30 35 25
143	143	14 20 30 30 26
144	144	15+ 20 30 30 27
145	145	Assets Shall Not be Trended 28
146	146	(c) Assets shall be classified on an annual basis by the Rhode Island Association of 29
147	147	Assessing Officers’ Personal Property Committee based on the following table: 30
148	148	INDUSTRY GROUP IN YEARS CLASS 31
149	149	Agriculture and forestry machinery and equipment II 32
150	150	Aircraft and all helicopters II 33
151	151	Amusement and theme parks II 34
152	152
153	153
154	154	LC000963 - Page 5 of 29
155	155	Apparel and fabricated textile manufacturing II 1
156	156	Automobile repair shops II 2
157	157	Bakeries and confectionery production II 3
158	158	Barber and beauty shops II 4
159	159	Billboards III 5
160	160	Brewery equipment not used directly in manufacturing II 6
161	161	Cable television, headend facilities: II 7
162	162	Microwave systems II 8
163	163	Program origination II 9
164	164	Service and test II 10
165	165	Subscriber connection and distribution II 11
166	166	Canneries and frozen food production II 12
167	167	Cement processing III 13
168	168	Chemical and allied production II 14
169	169	Clay products processing III 15
170	170	Cold storage and ice-making equipment III 16
171	171	Cold storage warehouse equipment II 17
172	172	Computers, personal computers (PC), laptops, tablets, cellphones, 18
173	173	mainframe/servers, peripherals, keyboard, mouse I 19
174	174	Condiments, processing II 20
175	175	Construction equipment, general construction, backhoes, 21
176	176	forklifts, loaders, cranes, unregistered vehicles II 22
177	177	Dairy products processing II 23
178	178	Data handling equipment, except computers II 24
179	179	printers, copiers, bridges, routers and gateways II 25
180	180	Distilling II 26
181	181	Electrical equipment not used in manufacturing II 27
182	182	Electronic equipment II 28
183	183	Fabricated metal products/special tools II 29
184	184	Fishing equipment, excluding boats and barges, lines, nets I 30
185	185	Food and beverage production II 31
186	186	Fur processing II 32
187	187	Gas distribution, total distribution equipment III 33
188	188	Glass and glass products/special tools II 34
189	189
190	190
191	191	LC000963 - Page 6 of 29
192	192	Grain and grain mill products processing III 1
193	193	Gypsum products III 2
194	194	Hand tools II 3
195	195	Hospital furnishings and equipment II 4
196	196	Hotel and motel furnishings and equipment II 5
197	197	Jewelry products and pens II 6
198	198	Knitwear and knit products, ex, work uniforms I 7
199	199	Laundry equipment II 8
200	200	Leather and leather products II 9
201	201	Logging, timber cutting II 10
202	202	Marine construction II 11
203	203	Meatpacking II 12
204	204	Medical and dental supply production II 13
205	205	Metalworking machinery processing II 14
206	206	Mining and quarrying II 15
207	207	Motion picture and television production II 16
208	208	Motor vehicle and parts/special tools II 17
209	209	Office furniture and equipment II 18
210	210	Optical lenses and instrument processing II 19
211	211	Paints and varnishes I 20
212	212	Petroleum refining III 21
213	213	pipeline transportation III 22
214	214	Plastics manufacturing I/II 23
215	215	Plastic products processing/special tools II 24
216	216	Primary metals production, nonferrous and foundry products III 25
217	217	special tools III 26
218	218	Primary steel mill products III 27
219	219	Printing and publishing II 28
220	220	Professional and scientific instruments II 29
221	221	Radio and television, broadcasting II 30
222	222	Railroad transportation equipment II 31
223	223	locomotive II 32
224	224	Recreation and amusement II 33
225	225	Retail trades, fixtures and equipment II 34
226	226
227	227
228	228	LC000963 - Page 7 of 29
229	229	Residential furniture II 1
230	230	Restaurant and bar equipment II 2
231	231	Restaurant equipment, fast foods II 3
232	232	Rubber products processing/special tools II 4
233	233	Sawmills, permanent/portable II 5
234	234	Service establishments II 6
235	235	Ship and boat building equipment/special tools II 7
236	236	Soft drink processing and bottling II 8
237	237	Stone products processing III 9
238	238	Telecommunications, local and interstate II 10
239	239	analog switching II 11
240	240	circuit, digital, analog, optic II 12
241	241	information/origination equipment I/II 13
242	242	smart phones I 14
243	243	metallic cable III 15
244	244	fiber cable, poles, conduit III 16
245	245	all other equipment II 17
246	246	Telecommunications, cellular 18
247	247	analog/digital switching II 19
248	248	radio frequency channel and control II 20
249	249	power equipment II 21
250	250	antennae II 22
251	251	towers III 23
252	252	transmission equipment II 24
253	253	cellular phones I 25
254	254	Textile products, including finishing and dyeing II 26
255	255	yarn, thread and woven fabrics II 27
256	256	Theater equipment II 28
257	257	Utilities/power production III 29
258	258	generation, transmission, or distribution equipment III 30
259	259	Waste reduction and resource recovery II 31
260	260	Water transportation III 32
261	261	vessels, barges and tugs III 33
262	262	Water utilities III 34
263	263
264	264
265	265	LC000963 - Page 8 of 29
266	266	Wharves, docks and piers III 1
267	267	Wholesale trade fixtures and equipment II 2
268	268	Wood products and furniture manufacturing II 3
269	269	(d) Any industry, group, or asset not enumerated in subsection (c) of this section, shall be 4
270	270	categorized as class II. 5
271	271	SECTION 7. Chapter 44-5 of the General Laws entitled "Levy and Assessment of Local 6
272	272	Taxes" is hereby amended by adding thereto the following section: 7
273	273	44-5-42.2. Exemption of certain forestry product operations property. 8
274	274	(a) All forestry product operations machinery, including motor vehicles with farm plates, 9
275	275	is exempt from taxation. 10
276	276	(b) Cities and towns may tax forestry product operations buildings at a rate that reflects the 11
277	277	actual costs incurred by the city or town in providing services to those buildings. 12
278	278	SECTION 8. Section 44-18-30 of the General Laws in Chapter 44-18 entitled "Sales and 13
279	279	Use Taxes — Liability and Computation" is hereby amended to read as follows: 14
280	280	44-18-30. Gross receipts exempt from sales and use taxes. 15
281	281	There are exempted from the taxes imposed by this chapter the following gross receipts: 16
282	282	(1) Sales and uses beyond constitutional power of state. From the sale and from the storage, 17
283	283	use, or other consumption in this state of tangible personal property the gross receipts from the sale 18
284	284	of which, or the storage, use, or other consumption of which, this state is prohibited from taxing 19
285	285	under the Constitution of the United States or under the constitution of this state. 20
286	286	(2) Newspapers. 21
287	287	(i) From the sale and from the storage, use, or other consumption in this state of any 22
288	288	newspaper. 23
289	289	(ii) “Newspaper” means an unbound publication printed on newsprint that contains news, 24
290	290	editorial comment, opinions, features, advertising matter, and other matters of public interest. 25
291	291	(iii) “Newspaper” does not include a magazine, handbill, circular, flyer, sales catalog, or 26
292	292	similar item unless the item is printed for, and distributed as, a part of a newspaper. 27
293	293	(3) School meals. From the sale and from the storage, use, or other consumption in this 28
294	294	state of meals served by public, private, or parochial schools, school districts, colleges, universities, 29
295	295	student organizations, and parent-teacher associations to the students or teachers of a school, 30
296	296	college, or university whether the meals are served by the educational institutions or by a food 31
297	297	service or management entity under contract to the educational institutions. 32
298	298	(4) Containers. 33
299	299	(i) From the sale and from the storage, use, or other consumption in this state of: 34
300	300
301	301
302	302	LC000963 - Page 9 of 29
303	303	(A) Non-returnable containers, including boxes, paper bags, and wrapping materials that 1
304	304	are biodegradable and all bags and wrapping materials utilized in the medical and healing arts, 2
305	305	when sold without the contents to persons who place the contents in the container and sell the 3
306	306	contents with the container. 4
307	307	(B) Containers when sold with the contents if the sale price of the contents is not required 5
308	308	to be included in the measure of the taxes imposed by this chapter. 6
309	309	(C) Returnable containers when sold with the contents in connection with a retail sale of 7
310	310	the contents or when resold for refilling. 8
311	311	(D) Keg and barrel containers, whether returnable or not, when sold to alcoholic beverage 9
312	312	producers who place the alcoholic beverages in the containers. 10
313	313	(ii) As used in this subdivision, the term “returnable containers” means containers of a kind 11
314	314	customarily returned by the buyer of the contents for reuse. All other containers are “non-returnable 12
315	315	containers.” 13
316	316	(5)(i) Charitable, educational, and religious organizations. From the sale to, as in defined 14
317	317	in this section, and from the storage, use, and other consumption in this state, or any other state of 15
318	318	the United States of America, of tangible personal property by hospitals not operated for a profit; 16
319	319	“educational institutions” as defined in subdivision (18) not operated for a profit; churches, 17
320	320	orphanages, and other institutions or organizations operated exclusively for religious or charitable 18
321	321	purposes; interest-free loan associations not operated for profit; nonprofit, organized sporting 19
322	322	leagues and associations and bands for boys and girls under the age of nineteen (19) years; the 20
323	323	following vocational student organizations that are state chapters of national vocational student 21
324	324	organizations: Distributive Education Clubs of America (DECA); Future Business Leaders of 22
325	325	America, Phi Beta Lambda (FBLA/PBL); Future Farmers of America (FFA); Future Homemakers 23
326	326	of America/Home Economics Related Occupations (FHA/HERD); Vocational Industrial Clubs of 24
327	327	America (VICA); organized nonprofit golden age and senior citizens clubs for men and women; 25
328	328	and parent-teacher associations; and from the sale, storage, use, and other consumption in this state, 26
329	329	of and by the Industrial Foundation of Burrillville, a Rhode Island domestic nonprofit corporation. 27
330	330	(ii) In the case of contracts entered into with the federal government, its agencies, or 28
331	331	instrumentalities, this state, or any other state of the United States of America, its agencies, any 29
332	332	city, town, district, or other political subdivision of the states; hospitals not operated for profit; 30
333	333	educational institutions not operated for profit; churches, orphanages, and other institutions or 31
334	334	organizations operated exclusively for religious or charitable purposes, the contractor may purchase 32
335	335	such materials and supplies (materials and/or supplies are defined as those that are essential to the 33
336	336	project) that are to be utilized in the construction of the projects being performed under the contracts 34
337	337
338	338
339	339	LC000963 - Page 10 of 29
340	340	without payment of the tax. 1
341	341	(iii) The contractor shall not charge any sales or use tax to any exempt agency, institution, 2
342	342	or organization but shall in that instance provide his or her suppliers with certificates in the form 3
343	343	as determined by the division of taxation showing the reason for exemption and the contractor’s 4
344	344	records must substantiate the claim for exemption by showing the disposition of all property so 5
345	345	purchased. If any property is then used for a nonexempt purpose, the contractor must pay the tax 6
346	346	on the property used. 7
347	347	(6) Gasoline. From the sale and from the storage, use, or other consumption in this state 8
348	348	of: (i) Gasoline and other products taxed under chapter 36 of title 31 and (ii) Fuels used for the 9
349	349	propulsion of airplanes. 10
350	350	(7) Purchase for manufacturing purposes. 11
351	351	(i) From the sale and from the storage, use, or other consumption in this state of computer 12
352	352	software, tangible personal property, electricity, natural gas, artificial gas, steam, refrigeration, and 13
353	353	water, when the property or service is purchased for the purpose of being manufactured into a 14
354	354	finished product for resale and becomes an ingredient, component, or integral part of the 15
355	355	manufactured, compounded, processed, assembled, or prepared product, or if the property or 16
356	356	service is consumed in the process of manufacturing for resale computer software, tangible personal 17
357	357	property, electricity, natural gas, artificial gas, steam, refrigeration, or water. 18
358	358	(ii) “Consumed” means destroyed, used up, or worn out to the degree or extent that the 19
359	359	property cannot be repaired, reconditioned, or rendered fit for further manufacturing use. 20
360	360	(iii) “Consumed” includes mere obsolescence. 21
361	361	(iv) “Manufacturing” means and includes: manufacturing, compounding, processing, 22
362	362	assembling, preparing, or producing. 23
363	363	(v) “Process of manufacturing” means and includes all production operations performed in 24
364	364	the producing or processing room, shop, or plant, insofar as the operations are a part of and 25
365	365	connected with the manufacturing for resale of tangible personal property, electricity, natural gas, 26
366	366	artificial gas, steam, refrigeration, or water and all production operations performed insofar as the 27
367	367	operations are a part of and connected with the manufacturing for resale of computer software. 28
368	368	(vi) “Process of manufacturing” does not mean or include administration operations such 29
369	369	as general office operations, accounting, collection, or sales promotion, nor does it mean or include 30
370	370	distribution operations that occur subsequent to production operations, such as handling, storing, 31
371	371	selling, and transporting the manufactured products, even though the administration and 32
372	372	distribution operations are performed by, or in connection with, a manufacturing business. 33
373	373	(8) State and political subdivisions. From the sale to, and from the storage, use, or other 34
374	374
375	375
376	376	LC000963 - Page 11 of 29
377	377	consumption by, this state, any city, town, district, or other political subdivision of this state. Every 1
378	378	redevelopment agency created pursuant to chapter 31 of title 45 is deemed to be a subdivision of 2
379	379	the municipality where it is located. 3
380	380	(9) Food and food ingredients. From the sale and storage, use, or other consumption in this 4
381	381	state of food and food ingredients as defined in § 44-18-7.1(l). 5
382	382	For the purposes of this exemption “food and food ingredients” shall not include candy, 6
383	383	soft drinks, dietary supplements, alcoholic beverages, tobacco, food sold through vending 7
384	384	machines, or prepared food, as those terms are defined in § 44-18-7.1, unless the prepared food is: 8
385	385	(i) Sold by a seller whose primary NAICS classification is manufacturing in sector 311, 9
386	386	except sub-sector 3118 (bakeries); 10
387	387	(ii) Sold in an unheated state by weight or volume as a single item; 11
388	388	(iii) Bakery items, including: bread, rolls, buns, biscuits, bagels, croissants, pastries, 12
389	389	donuts, danish, cakes, tortes, pies, tarts, muffins, bars, cookies, tortillas; and 13
390	390	is not sold with utensils provided by the seller, including: plates, knives, forks, spoons, 14
391	391	glasses, cups, napkins, or straws. 15
392	392	(10) Medicines, drugs, and durable medical equipment. From the sale and from the storage, 16
393	393	use, or other consumption in this state, of: 17
394	394	(i) “Drugs” as defined in § 44-18-7.1(h)(i), sold on prescriptions, medical oxygen, and 18
395	395	insulin whether or not sold on prescription. For purposes of this exemption drugs shall not include 19
396	396	over-the-counter drugs and grooming and hygiene products as defined in § 44-18-7.1(h)(iii). 20
397	397	(ii) Durable medical equipment as defined in § 44-18-7.1(k) for home use only, including, 21
398	398	but not limited to: syringe infusers, ambulatory drug delivery pumps, hospital beds, convalescent 22
399	399	chairs, and chair lifts. Supplies used in connection with syringe infusers and ambulatory drug 23
400	400	delivery pumps that are sold on prescription to individuals to be used by them to dispense or 24
401	401	administer prescription drugs, and related ancillary dressings and supplies used to dispense or 25
402	402	administer prescription drugs, shall also be exempt from tax. 26
403	403	(11) Prosthetic devices and mobility enhancing equipment. From the sale and from the 27
404	404	storage, use, or other consumption in this state, of prosthetic devices as defined in § 44-18-7.1(t), 28
405	405	sold on prescription, including, but not limited to: artificial limbs, dentures, spectacles, eyeglasses, 29
406	406	and artificial eyes; artificial hearing devices and hearing aids, whether or not sold on prescription; 30
407	407	and mobility enhancing equipment as defined in § 44-18-7.1(p), including wheelchairs, crutches, 31
408	408	and canes. 32
409	409	(12) Coffins, caskets, urns, shrouds and burial garments. From the sale and from the 33
410	410	storage, use, or other consumption in this state of coffins, caskets, burial containers, urns, urn liners, 34
411	411
412	412
413	413	LC000963 - Page 12 of 29
414	414	urn vaults, grave liners, grave vaults, burial tent setups, prayer cards, shrouds, and other burial 1
415	415	garments that are ordinarily sold by a funeral director as part of the business of funeral directing. 2
416	416	(13) Motor vehicles sold to nonresidents. 3
417	417	(i) From the sale, subsequent to June 30, 1958, of a motor vehicle to a bona fide nonresident 4
418	418	of this state who does not register the motor vehicle in this state, whether the sale or delivery of the 5
419	419	motor vehicle is made in this state or at the place of residence of the nonresident. A motor vehicle 6
420	420	sold to a bona fide nonresident whose state of residence does not allow a like exemption to its 7
421	421	nonresidents is not exempt from the tax imposed under § 44-18-20. In that event, the bona fide 8
422	422	nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate that would be imposed 9
423	423	in his or her state of residence not to exceed the rate that would have been imposed under § 44-18-10
424	424	20. Notwithstanding any other provisions of law, a licensed motor vehicle dealer shall add and 11
425	425	collect the tax required under this subdivision and remit the tax to the tax administrator under the 12
426	426	provisions of chapters 18 and 19 of this title. When a Rhode Island licensed, motor vehicle dealer 13
427	427	is required to add and collect the sales and use tax on the sale of a motor vehicle to a bona fide 14
428	428	nonresident as provided in this section, the dealer in computing the tax takes into consideration the 15
429	429	law of the state of the nonresident as it relates to the trade-in of motor vehicles. 16
430	430	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 17
431	431	require any licensed motor vehicle dealer to keep records of sales to bona fide nonresidents as the 18
432	432	tax administrator deems reasonably necessary to substantiate the exemption provided in this 19
433	433	subdivision, including the affidavit of a licensed motor vehicle dealer that the purchaser of the 20
434	434	motor vehicle was the holder of, and had in his or her possession a valid out-of-state motor vehicle 21
435	435	registration or a valid out-of-state driver’s license. 22
436	436	(iii) Any nonresident who registers a motor vehicle in this state within ninety (90) days of 23
437	437	the date of its sale to him or her is deemed to have purchased the motor vehicle for use, storage, or 24
438	438	other consumption in this state, and is subject to, and liable for, the use tax imposed under the 25
439	439	provisions of § 44-18-20. 26
440	440	(14) Sales in public buildings by blind people. From the sale and from the storage, use, or 27
441	441	other consumption in all public buildings in this state of all products or wares by any person 28
442	442	licensed under § 40-9-11.1. 29
443	443	(15) Air and water pollution control facilities. From the sale, storage, use, or other 30
444	444	consumption in this state of tangible personal property or supplies acquired for incorporation into 31
445	445	or used and consumed in the operation of a facility, the primary purpose of which is to aid in the 32
446	446	control of the pollution or contamination of the waters or air of the state, as defined in chapter 12 33
447	447	of title 46 and chapter 23 of title 23, respectively, and that has been certified as approved for that 34
448	448
449	449
450	450	LC000963 - Page 13 of 29
451	451	purpose by the director of environmental management. The director of environmental management 1
452	452	may certify to a portion of the tangible personal property or supplies acquired for incorporation 2
453	453	into those facilities or used and consumed in the operation of those facilities to the extent that that 3
454	454	portion has as its primary purpose the control of the pollution or contamination of the waters or air 4
455	455	of this state. As used in this subdivision, “facility” means any land, facility, device, building, 5
456	456	machinery, or equipment. 6
457	457	(16) Camps. From the rental charged for living quarters, or sleeping, or housekeeping 7
458	458	accommodations at camps or retreat houses operated by religious, charitable, educational, or other 8
459	459	organizations and associations mentioned in subsection (5), or by privately owned and operated 9
460	460	summer camps for children. 10
461	461	(17) Certain institutions. From the rental charged for living or sleeping quarters in an 11
462	462	institution licensed by the state for the hospitalization, custodial, or nursing care of human beings. 12
463	463	(18) Educational institutions. From the rental charged by any educational institution for 13
464	464	living quarters, or sleeping, or housekeeping accommodations or other rooms or accommodations 14
465	465	to any student or teacher necessitated by attendance at an educational institution. “Educational 15
466	466	institution” as used in this section means an institution of learning not operated for profit that is 16
467	467	empowered to confer diplomas, educational, literary, or academic degrees; that has a regular 17
468	468	faculty, curriculum, and organized body of pupils or students in attendance throughout the usual 18
469	469	school year; that keeps and furnishes to students and others records required and accepted for 19
470	470	entrance to schools of secondary, collegiate, or graduate rank; and no part of the net earnings of 20
471	471	which inures to the benefit of any individual. 21
472	472	(19) Motor vehicle and adaptive equipment for persons with disabilities. 22
473	473	(i) From the sale of: (A) Special adaptations; (B) The component parts of the special 23
474	474	adaptations; or (C) A specially adapted motor vehicle; provided that the owner furnishes to the tax 24
475	475	administrator an affidavit of a licensed physician to the effect that the specially adapted motor 25
476	476	vehicle is necessary to transport a family member with a disability or where the vehicle has been 26
477	477	specially adapted to meet the specific needs of the person with a disability. This exemption applies 27
478	478	to not more than one motor vehicle owned and registered for personal, noncommercial use. 28
479	479	(ii) For the purpose of this subsection the term “special adaptations” includes, but is not 29
480	480	limited to: wheelchair lifts, wheelchair carriers, wheelchair ramps, wheelchair securements, hand 30
481	481	controls, steering devices, extensions, relocations, and crossovers of operator controls, power-31
482	482	assisted controls, raised tops or dropped floors, raised entry doors, or alternative signaling devices 32
483	483	to auditory signals. 33
484	484	(iii) From the sale of: (a) Special adaptations, (b) The component parts of the special 34
485	485
486	486
487	487	LC000963 - Page 14 of 29
488	488	adaptations, for a “wheelchair accessible taxicab” as defined in § 39-14-1, and/or a “wheelchair 1
489	489	accessible public motor vehicle” as defined in § 39-14.1-1. 2
490	490	(iv) For the purpose of this subdivision the exemption for a “specially adapted motor 3
491	491	vehicle” means a use tax credit not to exceed the amount of use tax that would otherwise be due on 4
492	492	the motor vehicle, exclusive of any adaptations. The use tax credit is equal to the cost of the special 5
493	493	adaptations, including installation. 6
494	494	(20) Heating fuels. From the sale and from the storage, use, or other consumption in this 7
495	495	state of every type of heating fuel. 8
496	496	(21) Electricity and gas. From the sale and from the storage, use, or other consumption in 9
497	497	this state of electricity and gas. 10
498	498	(22) Manufacturing machinery and equipment. 11
499	499	(i) From the sale and from the storage, use, or other consumption in this state of tools, dies, 12
500	500	molds, machinery, equipment (including replacement parts), and related items to the extent used in 13
501	501	an industrial plant in connection with the actual manufacture, conversion, or processing of tangible 14
502	502	personal property, or to the extent used in connection with the actual manufacture, conversion, or 15
503	503	processing of computer software as that term is utilized in industry numbers 7371, 7372, and 7373 16
504	504	in the standard industrial classification manual prepared by the Technical Committee on Industrial 17
505	505	Classification, Office of Statistical Standards, Executive Office of the President, United States 18
506	506	Bureau of the Budget, as revised from time to time, to be sold, or that machinery and equipment 19
507	507	used in the furnishing of power to an industrial manufacturing plant. For the purposes of this 20
508	508	subdivision, “industrial plant” means a factory at a fixed location primarily engaged in the 21
509	509	manufacture, conversion, or processing of tangible personal property to be sold in the regular 22
510	510	course of business; 23
511	511	(ii) Machinery and equipment and related items are not deemed to be used in connection 24
512	512	with the actual manufacture, conversion, or processing of tangible personal property, or in 25
513	513	connection with the actual manufacture, conversion, or processing of computer software as that 26
514	514	term is utilized in industry numbers 7371, 7372, and 7373 in the standard industrial classification 27
515	515	manual prepared by the Technical Committee on Industrial Classification, Office of Statistical 28
516	516	Standards, Executive Office of the President, United States Bureau of the Budget, as revised from 29
517	517	time to time, to be sold to the extent the property is used in administration or distribution operations; 30
518	518	(iii) Machinery and equipment and related items used in connection with the actual 31
519	519	manufacture, conversion, or processing of any computer software or any tangible personal property 32
520	520	that is not to be sold and that would be exempt under subdivision (7) or this subdivision if purchased 33
521	521	from a vendor or machinery and equipment and related items used during any manufacturing, 34
522	522
523	523
524	524	LC000963 - Page 15 of 29
525	525	converting, or processing function is exempt under this subdivision even if that operation, function, 1
526	526	or purpose is not an integral or essential part of a continuous production flow or manufacturing 2
527	527	process; 3
528	528	(iv) Where a portion of a group of portable or mobile machinery is used in connection with 4
529	529	the actual manufacture, conversion, or processing of computer software or tangible personal 5
530	530	property to be sold, as previously defined, that portion, if otherwise qualifying, is exempt under 6
531	531	this subdivision even though the machinery in that group is used interchangeably and not otherwise 7
532	532	identifiable as to use. 8
533	533	(23) Trade-in value of motor vehicles. From the sale and from the storage, use, or other 9
534	534	consumption in this state of so much of the purchase price paid for a new or used automobile as is 10
535	535	allocated for a trade-in allowance on the automobile of the buyer given in trade to the seller, or of 11
536	536	the proceeds applicable only to the automobile as are received from the manufacturer of 12
537	537	automobiles for the repurchase of the automobile whether the repurchase was voluntary or not 13
538	538	towards the purchase of a new or used automobile by the buyer. For the purpose of this subdivision, 14
539	539	the word “automobile” means a private passenger automobile not used for hire and does not refer 15
540	540	to any other type of motor vehicle. 16
541	541	(24) Precious metal bullion. 17
542	542	(i) From the sale and from the storage, use, or other consumption in this state of precious 18
543	543	metal bullion, substantially equivalent to a transaction in securities or commodities. 19
544	544	(ii) For purposes of this subdivision, “precious metal bullion” means any elementary 20
545	545	precious metal that has been put through a process of smelting or refining, including, but not limited 21
546	546	to: gold, silver, platinum, rhodium, and chromium, and that is in a state or condition that its value 22
547	547	depends upon its content and not upon its form. 23
548	548	(iii) The term does not include fabricated precious metal that has been processed or 24
549	549	manufactured for some one or more specific and customary industrial, professional, or artistic uses. 25
550	550	(25) Commercial vessels. From sales made to a commercial ship, barge, or other vessel of 26
551	551	fifty (50) tons burden or over, primarily engaged in interstate or foreign commerce, and from the 27
552	552	repair, alteration, or conversion of the vessels, and from the sale of property purchased for the use 28
553	553	of the vessels including provisions, supplies, and material for the maintenance and/or repair of the 29
554	554	vessels. 30
555	555	(26) Commercial fishing vessels. From the sale and from the storage, use, or other 31
556	556	consumption in this state of vessels and other watercraft that are in excess of five (5) net tons and 32
557	557	that are used exclusively for “commercial fishing,” as defined in this subdivision, and from the 33
558	558	repair, alteration, or conversion of those vessels and other watercraft, and from the sale of property 34
559	559
560	560
561	561	LC000963 - Page 16 of 29
562	562	purchased for the use of those vessels and other watercraft including provisions, supplies, and 1
563	563	material for the maintenance and/or repair of the vessels and other watercraft and the boats nets, 2
564	564	cables, tackle, and other fishing equipment appurtenant to or used in connection with the 3
565	565	commercial fishing of the vessels and other watercraft. “Commercial fishing” means taking or 4
566	566	attempting to take any fish, shellfish, crustacea, or bait species with the intent of disposing of it for 5
567	567	profit or by sale, barter, trade, or in commercial channels. The term does not include subsistence 6
568	568	fishing, i.e., the taking for personal use and not for sale or barter; or sport fishing; but shall include 7
569	569	vessels and other watercraft with a Rhode Island party and charter boat license issued by the 8
570	570	department of environmental management pursuant to § 20-2-27.1 that meet the following criteria: 9
571	571	(i) The operator must have a current United States Coast Guard (U.S.C.G.) license to carry 10
572	572	passengers for hire; (ii) U.S.C.G. vessel documentation in the coast wide fishery trade; (iii) 11
573	573	U.S.C.G. vessel documentation as to proof of Rhode Island home port status or a Rhode Island boat 12
574	574	registration to prove Rhode Island home port status; and (iv) The vessel must be used as a 13
575	575	commercial passenger carrying fishing vessel to carry passengers for fishing. The vessel must be 14
576	576	able to demonstrate that at least fifty percent (50%) of its annual gross income derives from charters 15
577	577	or provides documentation of a minimum of one hundred (100) charter trips annually; and (v) The 16
578	578	vessel must have a valid Rhode Island party and charter boat license. The tax administrator shall 17
579	579	implement the provisions of this subdivision by promulgating rules and regulations relating thereto. 18
580	580	(27) Clothing and footwear. From the sales of articles of clothing, including footwear, 19
581	581	intended to be worn or carried on or about the human body for sales prior to October 1, 2012. 20
582	582	Effective October 1, 2012, the exemption will apply to the sales of articles of clothing, including 21
583	583	footwear, intended to be worn or carried on or about the human body up to two hundred and fifty 22
584	584	dollars ($250) of the sales price per item. For the purposes of this section, “clothing or footwear” 23
585	585	does not include clothing accessories or equipment or special clothing or footwear primarily 24
586	586	designed for athletic activity or protective use as these terms are defined in § 44-18-7.1(f). In 25
587	587	recognition of the work being performed by the streamlined sales and use tax governing board, 26
588	588	upon passage of any federal law that authorizes states to require remote sellers to collect and remit 27
589	589	sales and use taxes, this unlimited exemption will apply as it did prior to October 1, 2012. The 28
590	590	unlimited exemption on sales of clothing and footwear shall take effect on the date that the state 29
591	591	requires remote sellers to collect and remit sales and use taxes. 30
592	592	(28) Water for residential use. From the sale and from the storage, use, or other 31
593	593	consumption in this state of water furnished for domestic use by occupants of residential premises. 32
594	594	(29) Bibles. [Unconstitutional; see Ahlburn v. Clark, 728 A.2d 449 (R.I. 1999); see Notes 33
595	595	to Decisions.] From the sale and from the storage, use, or other consumption in the state of any 34
596	596
597	597
598	598	LC000963 - Page 17 of 29
599	599	canonized scriptures of any tax-exempt nonprofit religious organization including, but not limited 1
600	600	to, the Old Testament and the New Testament versions. 2
601	601	(30) Boats. 3
602	602	(i) From the sale of a boat or vessel to a bona fide nonresident of this state who does not 4
603	603	register the boat or vessel in this state or document the boat or vessel with the United States 5
604	604	government at a home port within the state, whether the sale or delivery of the boat or vessel is 6
605	605	made in this state or elsewhere; provided, that the nonresident transports the boat within thirty (30) 7
606	606	days after delivery by the seller outside the state for use thereafter solely outside the state. 8
607	607	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 9
608	608	require the seller of the boat or vessel to keep records of the sales to bona fide nonresidents as the 10
609	609	tax administrator deems reasonably necessary to substantiate the exemption provided in this 11
610	610	subdivision, including the affidavit of the seller that the buyer represented himself or herself to be 12
611	611	a bona fide nonresident of this state and of the buyer that he or she is a nonresident of this state. 13
612	612	(31) Youth activities equipment. From the sale, storage, use, or other consumption in this 14
613	613	state of items for not more than twenty dollars ($20.00) each by nonprofit Rhode Island 15
614	614	eleemosynary organizations, for the purposes of youth activities that the organization is formed to 16
615	615	sponsor and support; and by accredited elementary and secondary schools for the purposes of the 17
616	616	schools or of organized activities of the enrolled students. 18
617	617	(32) Farm equipment. From the sale and from the storage or use of machinery and 19
618	618	equipment used directly for commercial farming and agricultural production; including, but not 20
619	619	limited to: tractors, ploughs, harrows, spreaders, seeders, milking machines, silage conveyors, 21
620	620	balers, bulk milk storage tanks, trucks with farm plates, mowers, combines, irrigation equipment, 22
621	621	greenhouses and greenhouse coverings, graders and packaging machines, tools and supplies and 23
622	622	other farming equipment, including replacement parts appurtenant to or used in connection with 24
623	623	commercial farming and tools and supplies used in the repair and maintenance of farming 25
624	624	equipment. “Commercial farming” means the keeping or boarding of five (5) or more horses or the 26
625	625	production within this state of agricultural products, including, but not limited to, field or orchard 27
626	626	crops, livestock, dairy, and poultry, or their products, where the keeping, boarding, or production 28
627	627	provides at least two thousand five hundred dollars ($2,500) in annual gross sales to the operator, 29
628	628	whether an individual, a group, a partnership, or a corporation for exemptions issued prior to July 30
629	629	1, 2002. For exemptions issued or renewed after July 1, 2002, there shall be two (2) levels. Level I 31
630	630	shall be based on proof of annual, gross sales from commercial farming of at least twenty-five 32
631	631	hundred dollars ($2,500) and shall be valid for purchases subject to the exemption provided in this 33
632	632	subdivision except for motor vehicles with an excise tax value of five thousand dollars ($5,000) or 34
633	633
634	634
635	635	LC000963 - Page 18 of 29
636	636	greater. Level II shall be based on proof of annual gross sales from commercial farming of at least 1
637	637	ten thousand dollars ($10,000) or greater and shall be valid for purchases subject to the exemption 2
638	638	provided in this subdivision including motor vehicles with an excise tax value of five thousand 3
639	639	dollars ($5,000) or greater. For the initial issuance of the exemptions, proof of the requisite amount 4
640	640	of annual gross sales from commercial farming shall be required for the prior year; for any renewal 5
641	641	of an exemption granted in accordance with this subdivision at either level I or level II, proof of 6
642	642	gross annual sales from commercial farming at the requisite amount shall be required for each of 7
643	643	the prior two (2) years. Certificates of exemption issued or renewed after July 1, 2002, shall clearly 8
644	644	indicate the level of the exemption and be valid for four (4) years after the date of issue. This 9
645	645	exemption applies even if the same equipment is used for ancillary uses, or is temporarily used for 10
646	646	a non-farming or a non-agricultural purpose, but shall not apply to motor vehicles acquired after 11
647	647	July 1, 2002, unless the vehicle is a farm vehicle as defined pursuant to § 31-1-8 and is eligible for 12
648	648	registration displaying farm plates as provided for in § 31-3-31. 13
649	649	(33) Compressed air. From the sale and from the storage, use, or other consumption in the 14
650	650	state of compressed air. 15
651	651	(34) Flags. From the sale and from the storage, consumption, or other use in this state of 16
652	652	United States, Rhode Island or POW-MIA flags. 17
653	653	(35) Motor vehicle and adaptive equipment to certain veterans. From the sale of a motor 18
654	654	vehicle and adaptive equipment to and for the use of a veteran with a service-connected loss of or 19
655	655	the loss of use of a leg, foot, hand, or arm, or any veteran who is a double amputee, whether service 20
656	656	connected or not. The motor vehicle must be purchased by and especially equipped for use by the 21
657	657	qualifying veteran. Certificate of exemption or refunds of taxes paid is granted under rules or 22
658	658	regulations that the tax administrator may prescribe. 23
659	659	(36) Textbooks. From the sale and from the storage, use, or other consumption in this state 24
660	660	of textbooks by an “educational institution,” as defined in subsection (18) of this section, and any 25
661	661	educational institution within the purview of § 16-63-9(4), and used textbooks by any purveyor. 26
662	662	(37) Tangible personal property and supplies used in on-site hazardous waste recycling, 27
663	663	reuse, or treatment. From the sale, storage, use, or other consumption in this state of tangible 28
664	664	personal property or supplies used or consumed in the operation of equipment, the exclusive 29
665	665	function of which is the recycling, reuse, or recovery of materials (other than precious metals, as 30
666	666	defined in subdivision (24)(ii) of this section) from the treatment of “hazardous wastes,” as defined 31
667	667	in § 23-19.1-4, where the “hazardous wastes” are generated in Rhode Island solely by the same 32
668	668	taxpayer and where the personal property is located at, in, or adjacent to a generating facility of the 33
669	669	taxpayer in Rhode Island. The taxpayer shall procure an order from the director of the department 34
670	670
671	671
672	672	LC000963 - Page 19 of 29
673	673	of environmental management certifying that the equipment and/or supplies as used or consumed, 1
674	674	qualify for the exemption under this subdivision. If any information relating to secret processes or 2
675	675	methods of manufacture, production, or treatment is disclosed to the department of environmental 3
676	676	management only to procure an order, and is a “trade secret” as defined in § 28-21-10(b), it is not 4
677	677	open to public inspection or publicly disclosed unless disclosure is required under chapter 21 of 5
678	678	title 28 or chapter 24.4 of title 23. 6
679	679	(38) Promotional and product literature of boat manufacturers. From the sale and from the 7
680	680	storage, use, or other consumption of promotional and product literature of boat manufacturers 8
681	681	shipped to points outside of Rhode Island that either: (i) Accompany the product that is sold; (ii) 9
682	682	Are shipped in bulk to out-of-state dealers for use in the sale of the product; or (iii) Are mailed to 10
683	683	customers at no charge. 11
684	684	(39) Food items paid for by food stamps. From the sale and from the storage, use, or other 12
685	685	consumption in this state of eligible food items payment for which is properly made to the retailer 13
686	686	in the form of U.S. government food stamps issued in accordance with the Food Stamp Act of 1977, 14
687	687	7 U.S.C. § 2011 et seq. 15
688	688	(40) Transportation charges. From the sale or hiring of motor carriers as defined in § 39-16
689	689	12-2(12) to haul goods, when the contract or hiring cost is charged by a motor freight tariff filed 17
690	690	with the Rhode Island public utilities commission on the number of miles driven or by the number 18
691	691	of hours spent on the job. 19
692	692	(41) Trade-in value of boats. From the sale and from the storage, use, or other consumption 20
693	693	in this state of so much of the purchase price paid for a new or used boat as is allocated for a trade-21
694	694	in allowance on the boat of the buyer given in trade to the seller or of the proceeds applicable only 22
695	695	to the boat as are received from an insurance claim as a result of a stolen or damaged boat, towards 23
696	696	the purchase of a new or used boat by the buyer. 24
697	697	(42) Equipment used for research and development. From the sale and from the storage, 25
698	698	use, or other consumption of equipment to the extent used for research and development purposes 26
699	699	by a qualifying firm. For the purposes of this subsection, “qualifying firm” means a business for 27
700	700	which the use of research and development equipment is an integral part of its operation and 28
701	701	“equipment” means scientific equipment, computers, software, and related items. 29
702	702	(43) Coins. From the sale and from the other consumption in this state of coins having 30
703	703	numismatic or investment value. 31
704	704	(44) Farm structure construction materials. Lumber, hardware, and other materials used in 32
705	705	the new construction of farm structures, including production facilities such as, but not limited to: 33
706	706	farrowing sheds, free stall and stanchion barns, milking parlors, silos, poultry barns, laying houses, 34
707	707
708	708
709	709	LC000963 - Page 20 of 29
710	710	fruit and vegetable storages, rooting cellars, propagation rooms, greenhouses, packing rooms, 1
711	711	machinery storage, seasonal farm worker housing, certified farm markets, bunker and trench silos, 2
712	712	feed storage sheds, and any other structures used in connection with commercial farming. 3
713	713	(45) Telecommunications carrier access service. Carrier access service or 4
714	714	telecommunications service when purchased by a telecommunications company from another 5
715	715	telecommunications company to facilitate the provision of telecommunications service. 6
716	716	(46) Boats or vessels brought into the state exclusively for winter storage, maintenance, 7
717	717	repair, or sale. Notwithstanding the provisions of §§ 44-18-10, 44-18-11 and 44-18-20, the tax 8
718	718	imposed by § 44-18-20 is not applicable for the period commencing on the first day of October in 9
719	719	any year up to and including the 30th day of April next succeeding with respect to the use of any 10
720	720	boat or vessel within this state exclusively for purposes of: (i) Delivery of the vessel to a facility in 11
721	721	this state for storage, including dry storage and storage in water by means of apparatus preventing 12
722	722	ice damage to the hull, maintenance, or repair; (ii) The actual process of storage, maintenance, or 13
723	723	repair of the boat or vessel; or (iii) Storage for the purpose of selling the boat or vessel. 14
724	724	(47) Jewelry display product. From the sale and from the storage, use, or other 15
725	725	consumption in this state of tangible personal property used to display any jewelry product; 16
726	726	provided that title to the jewelry display product is transferred by the jewelry manufacturer or seller 17
727	727	and that the jewelry display product is shipped out of state for use solely outside the state and is not 18
728	728	returned to the jewelry manufacturer or seller. 19
729	729	(48) Boats or vessels generally. Notwithstanding the provisions of this chapter, the tax 20
730	730	imposed by §§ 44-18-20 and 44-18-18 shall not apply with respect to the sale and to the storage, 21
731	731	use, or other consumption in this state of any new or used boat. The exemption provided for in this 22
732	732	subdivision does not apply after October 1, 1993, unless prior to October 1, 1993, the federal ten 23
733	733	percent (10%) surcharge on luxury boats is repealed. 24
734	734	(49) Banks and regulated investment companies interstate toll-free calls. Notwithstanding 25
735	735	the provisions of this chapter, the tax imposed by this chapter does not apply to the furnishing of 26
736	736	interstate and international, toll-free terminating telecommunication service that is used directly 27
737	737	and exclusively by or for the benefit of an eligible company as defined in this subdivision; provided 28
738	738	that an eligible company employs on average during the calendar year no less than five hundred 29
739	739	(500) “full-time equivalent employees” as that term is defined in § 42-64.5-2. For purposes of this 30
740	740	section, an “eligible company” means a “regulated investment company” as that term is defined in 31
741	741	the Internal Revenue Code of 1986, 26 U.S.C. § 851, or a corporation to the extent the service is 32
742	742	provided, directly or indirectly, to or on behalf of a regulated investment company, an employee 33
743	743	benefit plan, a retirement plan or a pension plan, or a state-chartered bank. 34
744	744
745	745
746	746	LC000963 - Page 21 of 29
747	747	(50) Mobile and manufactured homes generally. From the sale and from the storage, use, 1
748	748	or other consumption in this state of mobile and/or manufactured homes as defined and subject to 2
749	749	taxation pursuant to the provisions of chapter 44 of title 31. 3
750	750	(51) Manufacturing business reconstruction materials. 4
751	751	(i) From the sale and from the storage, use, or other consumption in this state of lumber, 5
752	752	hardware, and other building materials used in the reconstruction of a manufacturing business 6
753	753	facility that suffers a disaster, as defined in this subdivision, in this state. “Disaster” means any 7
754	754	occurrence, natural or otherwise, that results in the destruction of sixty percent (60%) or more of 8
755	755	an operating manufacturing business facility within this state. “Disaster” does not include any 9
756	756	damage resulting from the willful act of the owner of the manufacturing business facility. 10
757	757	(ii) Manufacturing business facility includes, but is not limited to, the structures housing 11
758	758	the production and administrative facilities. 12
759	759	(iii) In the event a manufacturer has more than one manufacturing site in this state, the sixty 13
760	760	percent (60%) provision applies to the damages suffered at that one site. 14
761	761	(iv) To the extent that the costs of the reconstruction materials are reimbursed by insurance, 15
762	762	this exemption does not apply. 16
763	763	(52) Tangible personal property and supplies used in the processing or preparation of floral 17
764	764	products and floral arrangements. From the sale, storage, use, or other consumption in this state of 18
765	765	tangible personal property or supplies purchased by florists, garden centers, or other like producers 19
766	766	or vendors of flowers, plants, floral products, and natural and artificial floral arrangements that are 20
767	767	ultimately sold with flowers, plants, floral products, and natural and artificial floral arrangements 21
768	768	or are otherwise used in the decoration, fabrication, creation, processing, or preparation of flowers, 22
769	769	plants, floral products, or natural and artificial floral arrangements, including descriptive labels, 23
770	770	stickers, and cards affixed to the flower, plant, floral product, or arrangement, artificial flowers, 24
771	771	spray materials, floral paint and tint, plant shine, flower food, insecticide, and fertilizers. 25
772	772	(53) Horse food products. From the sale and from the storage, use, or other consumption 26
773	773	in this state of horse food products purchased by a person engaged in the business of the boarding 27
774	774	of horses. 28
775	775	(54) Non-motorized recreational vehicles sold to nonresidents. 29
776	776	(i) From the sale, subsequent to June 30, 2003, of a non-motorized recreational vehicle to 30
777	777	a bona fide nonresident of this state who does not register the non-motorized recreational vehicle 31
778	778	in this state, whether the sale or delivery of the non-motorized recreational vehicle is made in this 32
779	779	state or at the place of residence of the nonresident; provided that a non-motorized recreational 33
780	780	vehicle sold to a bona fide nonresident whose state of residence does not allow a like exemption to 34
781	781
782	782
783	783	LC000963 - Page 22 of 29
784	784	its nonresidents is not exempt from the tax imposed under § 44-18-20; provided, further, that in 1
785	785	that event the bona fide nonresident pays a tax to Rhode Island on the sale at a rate equal to the rate 2
786	786	that would be imposed in his or her state of residence not to exceed the rate that would have been 3
787	787	imposed under § 44-18-20. Notwithstanding any other provisions of law, a licensed, non-motorized 4
788	788	recreational vehicle dealer shall add and collect the tax required under this subdivision and remit 5
789	789	the tax to the tax administrator under the provisions of chapters 18 and 19 of this title. Provided, 6
790	790	that when a Rhode Island licensed, non-motorized recreational vehicle dealer is required to add and 7
791	791	collect the sales and use tax on the sale of a non-motorized recreational vehicle to a bona fide 8
792	792	nonresident as provided in this section, the dealer in computing the tax takes into consideration the 9
793	793	law of the state of the nonresident as it relates to the trade-in of motor vehicles. 10
794	794	(ii) The tax administrator, in addition to the provisions of §§ 44-19-27 and 44-19-28, may 11
795	795	require any licensed, non-motorized recreational vehicle dealer to keep records of sales to bona fide 12
796	796	nonresidents as the tax administrator deems reasonably necessary to substantiate the exemption 13
797	797	provided in this subdivision, including the affidavit of a licensed, non-motorized recreational 14
798	798	vehicle dealer that the purchaser of the non-motorized recreational vehicle was the holder of, and 15
799	799	had in his or her possession a valid out-of-state non-motorized recreational vehicle registration or 16
800	800	a valid out-of-state driver’s license. 17
801	801	(iii) Any nonresident who registers a non-motorized recreational vehicle in this state within 18
802	802	ninety (90) days of the date of its sale to him or her is deemed to have purchased the non-motorized 19
803	803	recreational vehicle for use, storage, or other consumption in this state, and is subject to, and liable 20
804	804	for, the use tax imposed under the provisions of § 44-18-20. 21
805	805	(iv) “Non-motorized recreational vehicle” means any portable dwelling designed and 22
806	806	constructed to be used as a temporary dwelling for travel, camping, recreational, and vacation use 23
807	807	that is eligible to be registered for highway use, including, but not limited to, “pick-up coaches” or 24
808	808	“pick-up campers,” “travel trailers,” and “tent trailers” as those terms are defined in chapter 1 of 25
809	809	title 31. 26
810	810	(55) Sprinkler and fire alarm systems in existing buildings. From the sale in this state of 27
811	811	sprinkler and fire alarm systems; emergency lighting and alarm systems; and the materials 28
812	812	necessary and attendant to the installation of those systems that are required in buildings and 29
813	813	occupancies existing therein in July 2003 in order to comply with any additional requirements for 30
814	814	such buildings arising directly from the enactment of the Comprehensive Fire Safety Act of 2003 31
815	815	and that are not required by any other provision of law or ordinance or regulation adopted pursuant 32
816	816	to that act. The exemption provided in this subdivision shall expire on December 31, 2008. 33
817	817	(56) Aircraft. Notwithstanding the provisions of this chapter, the tax imposed by §§ 44-34
818	818
819	819
820	820	LC000963 - Page 23 of 29
821	821	18-18 and 44-18-20 shall not apply with respect to the sale and to the storage, use, or other 1
822	822	consumption in this state of any new or used aircraft or aircraft parts. 2
823	823	(57) Renewable energy products. Notwithstanding any other provisions of Rhode Island 3
824	824	general laws, the following products shall also be exempt from sales tax: solar photovoltaic 4
825	825	modules or panels, or any module or panel that generates electricity from light; solar thermal 5
826	826	collectors, including, but not limited to, those manufactured with flat glass plates, extruded plastic, 6
827	827	sheet metal, and/or evacuated tubes; geothermal heat pumps, including both water-to-water and 7
828	828	water-to-air type pumps; wind turbines; towers used to mount wind turbines if specified by or sold 8
829	829	by a wind turbine manufacturer; DC to AC inverters that interconnect with utility power lines; and 9
830	830	manufactured mounting racks and ballast pans for solar collector, module, or panel installation. Not 10
831	831	to include materials that could be fabricated into such racks; monitoring and control equipment, if 11
832	832	specified or supplied by a manufacturer of solar thermal, solar photovoltaic, geothermal, or wind 12
833	833	energy systems or if required by law or regulation for such systems but not to include pumps, fans 13
834	834	or plumbing or electrical fixtures unless shipped from the manufacturer affixed to, or an integral 14
835	835	part of, another item specified on this list; and solar storage tanks that are part of a solar domestic 15
836	836	hot water system or a solar space heating system. If the tank comes with an external heat exchanger 16
837	837	it shall also be tax exempt, but a standard hot water tank is not exempt from state sales tax. 17
838	838	(58) Returned property. The amount charged for property returned by customers upon 18
839	839	rescission of the contract of sale when the entire amount exclusive of handling charges paid for the 19
840	840	property is refunded in either cash or credit, and where the property is returned within one hundred 20
841	841	twenty (120) days from the date of delivery. 21
842	842	(59) Dietary supplements. From the sale and from the storage, use, or other consumption 22
843	843	of dietary supplements as defined in § 44-18-7.1(l)(v), sold on prescriptions. 23
844	844	(60) Blood. From the sale and from the storage, use, or other consumption of human blood. 24
845	845	(61) Agricultural products for human consumption. From the sale and from the storage, 25
846	846	use, or other consumption of livestock and poultry of the kinds of products that ordinarily constitute 26
847	847	food for human consumption and of livestock of the kind the products of which ordinarily constitute 27
848	848	fibers for human use. 28
849	849	(62) Diesel emission control technology. From the sale and use of diesel retrofit 29
850	850	technology that is required by § 31-47.3-4. 30
851	851	(63) Feed for certain animals used in commercial farming. From the sale of feed for 31
852	852	animals as described in subsection (61) of this section. 32
853	853	(64) Alcoholic beverages. From the sale and storage, use, or other consumption in this 33
854	854	state by a Class A licensee of alcoholic beverages, as defined in § 44-18-7.1, excluding beer and 34
855	855
856	856
857	857	LC000963 - Page 24 of 29
858	858	malt beverages; provided, further, notwithstanding § 6-13-1 or any other general or public law to 1
859	859	the contrary, alcoholic beverages, as defined in § 44-18-7.1, shall not be subject to minimum 2
860	860	markup. 3
861	861	(65) Seeds and plants used to grow food and food ingredients. From the sale, storage, use, 4
862	862	or other consumption in this state of seeds and plants used to grow food and food ingredients as 5
863	863	defined in § 44-18-7.1(l)(i). “Seeds and plants used to grow food and food ingredients” shall not 6
864	864	include marijuana seeds or plants. 7
865	865	(66) Feminine hygiene products. From the sale and from the storage, use, or other 8
866	866	consumption of tampons, panty liners, menstrual cups, sanitary napkins, and other similar products 9
867	867	the principal use of which is feminine hygiene in connection with the menstrual cycle. 10
868	868	(67) “Breast pump collection and storage supplies” means items of tangible personal 11
869	869	property used in conjunction with a breast pump to collect milk expressed from a human breast and 12
870	870	to store collected milk until it is ready for consumption. “Breast pump collection and storage 13
871	871	supplies” include, but are not limited to, breast shields and breast shield connectors; breast pump 14
872	872	tubes and tubing adaptors; breast pump valves and membranes; backflow protectors and backflow 15
873	873	protector adaptors; bottles and bottle caps specific to the operation of the breast pump; breast milk 16
874	874	storage bags; and related items sold as part of a breast pump kit pre-packaged by the breast pump 17
875	875	manufacturer. “Breast pump collection and storage supplies” does not include: bottles and bottle 18
876	876	caps not specific to the operation of the breast pump; breast pump travel bags and other similar 19
877	877	carrying accessories, including ice packs, labels, and other similar products, unless sold as part of 20
878	878	a breast pump kit pre-packed by the breast pump manufacturer; breast pump cleaning supplies, 21
879	879	unless sold as part of a breast pump kit pre-packaged by the breast pump manufacturer; nursing 22
880	880	bras, bra pads, breast shells, and other similar products; and creams, ointments, and other similar 23
881	881	products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples. 24
882	882	(68) Trade-in value of motorcycles. From the sale and from the storage, use, or other 25
883	883	consumption in this state of so much of the purchase price paid for a new or used motorcycle as is 26
884	884	allocated for a trade-in allowance on the motorcycle of the buyer given in trade to the seller, or of 27
885	885	the proceeds applicable only to the motorcycle as are received from the manufacturer of 28
886	886	motorcycles for the repurchase of the motorcycle whether the repurchase was voluntary or not 29
887	887	towards the purchase of a new or used motorcycle by the buyer. For the purpose of this subsection, 30
888	888	the word “motorcycle” means a motorcycle not used for hire and does not refer to any other type 31
889	889	of motor vehicle. 32
890	890	(69 Forestry product operations equipment and parts. From the sale and from the storage 33
891	891	or use of machinery and equipment and parts used directly for forest product operations engaged 34
892	892
893	893
894	894	LC000963 - Page 25 of 29
895	895	in commercial production including, but not limited to: chainsaws, tree chippers, mulch grinders, 1
896	896	chip screeners, sawdust blowers, conveyors, power generators , firewood processors, log skidders, 2
897	897	wood splitters, disc cleaners, tumblers, shaving mills, loaders, forklifts, firewood kilns, pallet kilns, 3
898	898	lumber kilns, sawdust dryers, forwarders, sawmills, resaws, edgers, planers, debarkers, live log 4
899	899	decks, green chains, tractors, winches, tree harvesters, feller bunchers, log loaders, slashers, 5
900	900	delimbers, grapples, bucket trucks, tree cranes, and stump grinders. "Forest product operations" 6
901	901	shall have the same meaning as defined in § 2-27.1-4. The exemption shall be valid for small 7
902	902	businesses, as defined in § 22-7.6-1, that employ no more than three hundred (300) employees and 8
903	903	shall apply to no more than two million five hundred thousand dollars ($2,500,000) in forest 9
904	904	operations equipment and parts. 10
905	905	SECTION 9. Section 44-27-1 of the General Laws in Chapter 44-27 entitled "Taxation of 11
906	906	Farm, Forest, and Open Space Land" is hereby amended to read as follows: 12
907	907	44-27-1. Legislative declaration. 13
908	908	It is declared: 14
909	909	(1) That it is in the public interest to encourage the preservation of farm, forest, and open 15
910	910	space land in order to maintain a readily available source of food, and farm and forest products 16
911	911	close to the metropolitan areas of the state, to conserve the state’s natural resources, and to provide 17
912	912	for the welfare and happiness of the inhabitants of the state. 18
913	913	(2) That it is in the public interest to prevent the forced conversion of farm, forest, and open 19
914	914	space land to more intensive uses as the result of economic pressures caused by the assessment for 20
915	915	purposes of property taxation at values incompatible with their preservation as farm, forest, and 21
916	916	open space land. 22
917	917	(3) That the necessity in the public interest of the enactment of the provisions of this chapter 23
918	918	is a matter of legislative determination. 24
919	919	SECTION 10. Section 45-24-37 of the General Laws in Chapter 45-24 entitled "Zoning 25
920	920	Ordinances" is hereby amended to read as follows: 26
921	921	45-24-37. General provisions — Permitted uses. 27
922	922	(a) The zoning ordinance shall provide a listing of all land uses and/or performance 28
923	923	standards for uses that are permitted within the zoning use districts of the municipality. The 29
924	924	ordinance may provide for a procedure under which a proposed land use that is not specifically 30
925	925	listed may be presented by the property owner to the zoning board of review or to a local official 31
926	926	or agency charged with administration and enforcement of the ordinance for an evaluation and 32
927	927	determination of whether the proposed use is of a similar type, character, and intensity as a listed 33
928	928	permitted use. Upon such determination, the proposed use may be considered to be a permitted use. 34
929	929
930	930
931	931	LC000963 - Page 26 of 29
932	932	(b) Notwithstanding any other provision of this chapter, the following uses are permitted 1
933	933	uses within all residential zoning use districts of a municipality and all industrial and commercial 2
934	934	zoning use districts except where residential use is prohibited for public health or safety reasons: 3
935	935	(1) Households; 4
936	936	(2) Community residences; and 5
937	937	(3) Family daycare homes. 6
938	938	(c) Any time a building or other structure used for residential purposes, or a portion of a 7
939	939	building containing residential units, is rendered uninhabitable by virtue of a casualty such as fire 8
940	940	or flood, the owner of the property is allowed to park, temporarily, mobile and manufactured home, 9
941	941	or homes, as the need may be, elsewhere upon the land, for use and occupancy of the former 10
942	942	occupants for a period of up to twelve (12) months, or until the building or structure is rehabilitated 11
943	943	and otherwise made fit for occupancy. The property owner, or a properly designated agent of the 12
944	944	owner, is only allowed to cause the mobile and manufactured home, or homes, to remain 13
945	945	temporarily upon the land by making timely application to the local building official for the 14
946	946	purposes of obtaining the necessary permits to repair or rebuild the structure. 15
947	947	(d) Notwithstanding any other provision of this chapter, appropriate access for people with 16
948	948	disabilities to residential structures is allowed as a reasonable accommodation for any person(s) 17
949	949	residing, or intending to reside, in the residential structure. 18
950	950	(e) Notwithstanding any other provision of this chapter, an accessory dwelling unit 19
951	951	(“ADU”) that meets the requirements of §§ 45-24-31 and 45-24-73(a) shall be a permitted use in 20
952	952	all residential zoning districts. An ADU that meets the requirements of §§ 45-24-31 and 45-24-21
953	953	73(a) shall be permitted through an administrative building permit process only. 22
954	954	(f) When used in this section the terms “people with disabilities” or “member, or members, 23
955	955	with disabilities” means a person(s) who has a physical or mental impairment that substantially 24
956	956	limits one or more major life activities, as defined in 42-87-1(5). 25
957	957	(g) Notwithstanding any other provisions of this chapter, plant agriculture is a permitted 26
958	958	use and forest product operations, as defined in § 2-27.1-4 are permitted uses within all zoning 27
959	959	districts of a municipality, including all industrial and commercial zoning districts, except where 28
960	960	prohibited for public health or safety reasons or the protection of wildlife habitat. 29
961	961	(h) Adaptive reuse. Notwithstanding any other provisions of this chapter, adaptive reuse 30
962	962	for the conversion of any commercial building, including offices, schools, religious facilities, 31
963	963	medical buildings, and malls into residential units or mixed-use developments which include the 32
964	964	development of at least fifty percent (50%) of the existing gross floor area into residential units, 33
965	965	shall be a permitted use and allowed by specific and objective provisions of a zoning ordinance, 34
966	966
967	967
968	968	LC000963 - Page 27 of 29
969	969	except where such is prohibited by environmental land use restrictions recorded on the property by 1
970	970	the state of Rhode Island department of environmental management or the United States 2
971	971	Environmental Protection Agency preventing the conversion to residential use. 3
972	972	(1) The specific zoning ordinance provisions for adaptive reuse shall exempt adaptive reuse 4
973	973	developments from off-street parking requirements of over one space per dwelling unit. 5
974	974	(2) Density. 6
975	975	(i) For projects that meet the following criteria, zoning ordinances shall allow for high 7
976	976	density development and shall not limit the density to less than fifteen (15) dwelling units per acre: 8
977	977	(A) Where the project is limited to the existing footprint, except that the footprint is allowed 9
978	978	to be expanded to accommodate upgrades related to the building and fire codes and utilities; and 10
979	979	(B) The development includes at least twenty percent (20%) low- and moderate-income 11
980	980	housing; and 12
981	981	(C) The development has access to public sewer and water service or has access to adequate 13
982	982	private water, such as a well and and/or wastewater treatment system(s) approved by the relevant 14
983	983	state agency for the entire development as applicable. 15
984	984	(ii) For all other adaptive reuse projects, the residential density permitted in the converted 16
985	985	structure shall be the maximum allowed that otherwise meets all standards of minimum housing 17
986	986	and has access to public sewer and water service or has access to adequate private water, such as a 18
987	987	well, and wastewater treatment system(s) approved by the relevant state agency for the entire 19
988	988	development, as applicable. The density proposed shall be determined to meet all public health and 20
989	989	safety standards. 21
990	990	(3) Notwithstanding any other provisions of this chapter, for adaptive reuse projects, 22
991	991	existing building setbacks shall remain and shall be considered legal nonconforming, but no 23
992	992	additional encroachments shall be permitted into any nonconforming setback, unless otherwise 24
993	993	allowed by zoning ordinance or relief is granted by the applicable authority. 25
994	994	(4) For adaptive reuse projects, notwithstanding any other provisions of this chapter, the 26
995	995	height of the existing structure, if it exceeds the maximum height of the zoning district, may remain 27
996	996	and shall be considered legal nonconforming, and any rooftop construction shall be included within 28
997	997	the height exemption. 29
998	998	(i) Notwithstanding any other provisions of this chapter, all towns and cities may allow 30
999	999	manufactured homes that comply with § 23-27.3-109.1.3 as a type of single-family home on any 31
1000	1000	lot zoned for single-family use. Such home shall comply with all dimensional requirements of a 32
1001	1001	single-family home in the district or seek relief for the same under the provisions of this chapter. 33
1002	1002	SECTION 11. Construction. This act, being necessary for the welfare of the state and its 34
1003	1003
1004	1004
1005	1005	LC000963 - Page 28 of 29
1006	1006	inhabitants, shall be construed liberally so as to effectuate its purposes. 1
1007	1007	SECTION 12. Severability. If any clause, sentence, paragraph, section, or part of this act 2
1008	1008	shall be adjudged by any court of competent jurisdiction to be invalid, that judgment shall not 3
1009	1009	affect, impair, or invalidate the remainder of this act but shall be confined in its operation to the 4
1010	1010	clause, sentence, paragraph, section, or part directly involved in the controversy in which that 5
1011	1011	judgment shall have been rendered. 6
1012	1012	SECTION 13. This act shall take effect upon passage. 7
1013	1013	========
1014	1014	LC000963
1015	1015	========
1016	1016
1017	1017
1018	1018	LC000963 - Page 29 of 29
1019	1019	EXPLANATION
1020	1020	BY THE LEGISLATIVE COUNCIL
1021	1021	OF
1022	1022	A N A C T
1023	1023	RELATING TO AGRICULTURE AND FORESTRY -- FORESTRY AND FOREST PARITY
1024	1024	ACT
1025	1025	***
1026	1026	This act would establish sales and use tax exemptions for commercial forest product 1
1027	1027	operations with gross sales of at least five thousand dollars ($5,000). The exemption would be 2
1028	1028	provided at two (2) levels with the distinction being operations generating less than fifty thousand 3
1029	1029	dollars ($50,000) in average sales would be limited to an exemption on motor vehicles up to five 4
1030	1030	thousand dollars ($5,000) in value. Exempt would be machinery and equipment to include, but not 5
1031	1031	limited to: sawmills, tractors, forklifts, log skidders, chainsaws and power generators. Additionally, 6
1032	1032	the act would create a new motor vehicle registration for "forestry vehicles" and would provide that 7
1033	1033	all forestry product operations machinery, including motor vehicles with forestry registration plates 8
1034	1034	would be exempt from taxation. Municipalities would be allowed to tax forestry product operations 9
1035	1035	buildings at a rate that reflects the actual cost incurred by the municipality in providing services to 10
1036	1036	these buildings. Finally, this act would provide that forest product operations are permitted uses 11
1037	1037	within all zoning districts of a municipality except where prohibited for public health or safety 12
1038	1038	reasons or the protection of wildlife habitat. 13
1039	1039	This act would take effect upon passage. 14
1040	1040	========
1041	1041	LC000963
1042	1042	========
1043	1043