Chapter 184
2010 -- S 2440 SUBSTITUTE A AS
AMENDED
Enacted 06/25/10
A N A C T
RELATING TO
MOTOR AND OTHER VEHICLES -- THE DIESEL EMISSION
REDUCTION ACT
Introduced By: Senators Miller, Sosnowski, Maher, Ruggerio, and Connors
Date Introduced: February 11, 2010
It is enacted by the
General Assembly as follows:
SECTION 1. Chapter 31-47.3 of the General Laws entitled
"The Diesel Emissions
Reduction Act" is
hereby amended by adding thereto the following sections:
31-47.3-1.1.
Purpose. – This act shall be known and may be
cited as "An Act
Concerning Government
Responsibility To Protect Public Health From Diesel
Pollution.”
The general purposes of this act are to:
(1) Minimize human
exposure to and health risks from diesel pollution;
(2) Reduce health
costs, missed school days, lost worker productivity and premature
mortality linked to exposure to the diesel particulate matter
(PM) and other diesel pollutants;
(3) Achieve maximum
feasible diesel particulate matter emissions reductions and
diminished human exposure that is additional to the impact of
federal diesel emission rules,
which focus mostly on new engines;
(4) Advance the
state's climate protection goals and climate action plan by reducing the
amount of black carbon pollution emitted by diesels; and
(5) Achieve health
benefits for
takes advantage of retrofits that are occurring in the
marketplace.
31-47.3-4.
Emission reduction strategies in new public works contracts.
-- Effective
upon passage of this legislation, any solicitation for a
public works contract with the state, and
any contract entered into as a result of such
solicitation, shall include provisions requiring all
heavy duty vehicles used in the performance of such
contract to adhere to the following
requirements:
(1) Contractors shall
establish staging zones, provided that such space is available at no
extra cost, for diesel vehicles away from the general
public or sensitive receptors, including, but
not limited to, hospitals, schools, and residential
neighborhoods, to minimize the impact of
emissions from idling vehicles.
(2) Idling of diesel
engines shall be limited to no more than five (5) minutes, except in
cases where the engine must idle to perform normal
operations, as with a cement truck.
(3) Onroad and nonroad heavy-duty
diesel vehicles, including generators, shall use only
ultra-low sulfur diesel fuel.
31-47.3-5. Use of
emission control technology in new public works contracts. – (a)
Effective upon passage of this legislation, the
department of transportation (DOT) shall
implement contract requirements specified in subsection (b) on
at least one project to be out to
bid no later than September 30, 2010. Performance of the
project, if deemed practicable by the
director of DOT, must be started no later than six (6) months
after the project bid has been
awarded. DOT shall provide a summary report of the results of
the project, implementation of
these provisions and any recommendations to the governor
and the general assembly no later than
sixty (60) days after project completion. In selecting the
project, the DOT shall prioritize
otherwise eligible projects that:
(1) Each have a total individual budget of no less than six million
dollars ($6,000,000);
(2) Serve areas in
(i)
With highest population density; and/or
(ii) Exposed to a
disproportionate amount of air pollution from diesel fleets.
(b)Beginning January
1, 2013, any solicitation for a public works contract or contracts
with the state funded in whole or in part by federal
monies and having a total project cost of at
least five million dollars ($5,000,000), and any contract
entered into as a result of such
solicitation, shall include provisions requiring all heavy duty
vehicles used in the performance of
such contract to adhere to the following requirements:
(1) Subject to the
provisions of subdivisions (2) through (4), onroad
and nonroad heavy-
duty diesel vehicles, including generators, shall be
powered by engines with properly operating
and maintained Level 3 controls. Provided, however, that if
the department of environmental
management (DEM) finds that no Level 3 verified emission control
devices have been verified
and are otherwise appropriate for use on particular
engines, Level 2 verified devices shall be
required; if neither Level 3 nor Level 2 devices have been
verified and are otherwise appropriate
for use on particular engines, Level 1 verified devices
shall be required; and
(2)The emission
control technology requirements of subdivision (1) shall not apply to:
(i)
Vehicles and equipment dedicated for snow removal;
(ii) Farm equipment;
(iii)Vehicles that
are specially equipped and used for emergency response and vehicles
that are used during a declared state of emergency and for
the life of the project associated with
the state of emergency;
(iv)
Vehicles that are used to deliver equipment or material to and
from the project site;
(v) Standby
generators; and
(vi)
Vehicles used on the project for less than thirty (30) total work
days over the life of
the project; and
(3)
Unregulated, or pre-Tier 1 diesel engines are exempt from the
requirements in
subdivision (1). No later than December 1, 2011, DEM shall
initiate a stakeholder process to
determine how to reduce particulate emissions from unregulated,
or pre-Tier 1 diesel engines, and
how to create a statewide inventory of heavy duty diesel
vehicles and how this inventory is
published. The stakeholder process shall include
representatives from industries that utilize pre-
Tier 1 diesel engines. DEM
shall report findings and recommendations from the stakeholder
process to the governor and the general assembly no later
than July 1, 2012; and
(4) Emission controls
shall be required only to the extent of available reimbursement
from project funds covering the equipment purchase and
installation labor costs of the controls,
provided that at least one percent (1%) of the total of each
project budget shall be dedicated for
such reimbursement.
(i)
Funds shall be generally allocated to pay for the most cost-effective emission
controls
in terms of particulate pollution reduction per dollar
spent.
(ii) Dedicated funds,
subject to this subdivision (4), remaining after all eligible vehicles
and equipment have been retrofit and reimbursement to
contractors has been rendered subject to
the provisions of this statute, may be considered part of
the overall project budget as determined
by the state.
(c) Implementation.
The requirements of subsections (a) and (b) shall be implemented as
specified by the state, and shall include the following:
(1) A blind bidding
process;
(2) When project bids
are awarded, the state shall notify the contractor in writing of the
total budget for retrofits according to the provisions of subdivision
(b)(4);
(3) Contractors must
select vehicles and equipment to be retrofitted according to the
requirements of subsection (b) within the budget specified by the
state. Contractors shall give
priority to retrofitting vehicles and equipment that:
(i)
Will likely spend the most time operating on the project;
(ii) Will
disproportionately expose the surrounding community and sensitive receptors
including, but not limited to, hospitals, schools and
residential neighborhoods to diesel pollution;
and
(iii) Are most
cost-effective in terms of emission controls for particulate pollution
reduction per dollar spent.
(4) Construction
shall not proceed until the contractor submits an equipment list of all
heavy-duty vehicles to be used on site, in the format specified
by the department of
environmental management, including the following:
(i)
Contractor and subcontractor names and addresses, plus contact person
responsible for
the vehicles and or equipment; and
(ii) Documentation,
including the technology type, EPA/CARB verification
number/control Level, manufacturer, make, model, serial number of
the retrofit device; the date
the retrofit was installed; or in the case of a delayed
shipment for retrofit parts and/or equipment,
proof of purchase and the expected ship date from the
manufacturer, for the retrofitted vehicles to
be used on the project; and
(5) Equipment, as
further defined in subdivisions (c)(3) and (4), not
meeting the
requirements of this section shall not be used on the project
site; provided, however, that
(i)
If the contractor can provide documentation demonstrating that a retrofit was
ordered
for noncompliant equipment, but not arrived yet, and that
the failure to retrofit in a timely manner
was caused by circumstances beyond the contractor’s
control, the noncompliant equipment may
begin work on the project and operate on site for a maximum
thirty (30) total work days or for
additional time if authorized by the procuring agency.
(ii) If the
contractor subsequently needs to bring on site equipment not on the equipment
list specified in subdivision (4), the contractor shall
submit written notification within forty-eight
(48) hours to the procuring
agency and the additional equipment shall be used on the project site
for no more than thirty (30) total work days or for
additional time if authorized by the procuring
agency; provided that noncompliant equipment shall not be
authorized for use more than three
times during the life of the project.
(d) Reporting.
(1) The contractor
shall submit monthly summary reports to the project manager,
updating the equipment list, including diesel fuel use for the
reporting time period for all
equipment used in the performance of the contract. The addition
or deletion of any equipment
shall be included in the summary and noted in the monthly
report.
(2) By December 1,
2013, and December 1 of each subsequent year through 2015, the
state shall submit contractors’ monthly summary reports,
along with all inventory lists and
equipment lists to DEM in the form requested.
(3) By February 1,
2013, and February 1 of each subsequent year through 2015, DEM
shall create and submit a summary report to the
legislature. The report will be made accessible to
the public by posting on the DEM website.
(4) The report
submitted by February 1, 2013 shall include:
(i)
A description of the state’s implementation of the new contract requirements;
(ii) An estimate of the
resulting diesel emission reductions;
(iii) An estimate of
the total population of heavy-duty diesel vehicles and equipment in
the state;
(iv)
An estimate of the total population of retrofitted heavy-duty
diesel vehicles and
equipment in the state;
(v) A description of
other appropriate measures of progress;
(vi)
A description of problems encountered and opportunities for
additional reductions in
diesel emissions; and
(vii)
Recommendations for any statutory changes including but not limited to:
(A) The appropriate
emissions control technology for specific vehicle groups;
(B) The types of
projects that shall require emissions controls;
(C) The appropriate
funding mechanism for continued implementation of the program;
(D) The reporting
requirements necessary to track and number heavy duty vehicles in
use, and the number of retrofits that are achieved under
the program, and
(E) The appropriate
enforcing agent for the program.
(5) DEM shall provide
written notice and opportunity for a public meeting and comment
on the draft of the report due February 1, 2013.
(e) DEM, DOT and
other state agencies may promulgate regulations regarding the
solicitation, bidding and awarding of public works projects as
defined in subdivisions 31-47.3-
5(b)(1), (b)(2), (c)(4), and
(d)(1) and regarding enforcement as defined in 31-47.3-6, provided
that the scope of the rulemaking authority granted
hereunder shall be narrowly construed. No
rule promulgated hereunder shall expand the scope of or
impose more stringent limitations than
those expressly set forth in this act.
(f) Funding.
(1) All costs
associated with the purchase and installation by a contractor of the emission
control technologies for a specific project in order to
comply with the contract provisions required
by subsections (a) and (b) shall be fully reimbursed
from project funds within sixty (60) days of
the technology installation; provided that the compliant control
technology is installed within
thirty (30) work days after the applicable vehicle is
brought onto the project site unless it meets
the requirements provided in subdivision (c)(5).
(2) Retrofits
installed with funds from the project shall remain on the heavy-duty diesel
vehicle for the useful life of the emission control device or
the vehicle or in the event the vehicle
is sold out-of-state the retrofit technology may be
removed at the contractor’s expense and used
on a piece of equipment that performs work within
date it was removed from the original equipment.
(g) Public education.
Any project that is subject to public hearing requirements shall
include at a minimum an overview of the diesel abatement
strategies for the project as part of the
public hearing presentation.
31-47.3-6.
Enforcement. -- (a)
Enforcement. The state shall include enforcement
provisions in each contract subject to the provisions of section
31-47.3-4 and 31-47.3-5, which
shall include, authorization for the state to conduct
random inspections of contractor’s equipment
and records to ensure compliance provided that for the
purpose of inspecting heavy duty vehicles
and their records to determine compliance with these
regulations, an agent or employee of DEM,
upon presentation of proper credentials, shall have the
right to enter any project location (with
necessary safety clearances) where the designated vehicles are
located or kept.
(b) After January 1,
2013 any person who fails to submit any information, report, or
statement required by this regulation, or who knowingly submits
any false statement or
representation in any application, report, statement, or other
document filed, maintained or used
for the purposes of compliance with this regulation may
be subject to administrative penalties.
Administrative penalties shall be assessed by the
department of environmental management in
accordance with section 42-17.6. In assessing penalties, DEM
will consider factors, including, but
not limited to, the willfulness of the violation, the
length of time of noncompliance, whether the
fleet made an attempt to comply, and the magnitude of
noncompliance.
31-47.3-7.
Severability. -- If any clause, sentence,
paragraph, section or part of this act
shall be adjudged by any court of competent jurisdiction to
be invalid and after exhaustion of all
further judicial review, the judgment shall not affect,
impair or invalidate the remainder thereof,
but shall be confined in its operation to the clause,
sentence, paragraph, section or part of this act
directly involved in the controversy in which the judgment
shall have been rendered.
SECTION 2. Sections 31-47.3-2 and 31-47.3-3 of the General
Laws in Chapter 31-47.3
entitled "The Diesel Emissions Reduction Act" are
hereby amended to read as follows:
31-47.3-2.
Definitions. -- When used in this chapter:
(1) "Best available
retrofit technology" means technology, verified by the
Environmental Protection Agency or California Air
Resources Board (CARB) for achieving
reductions in particulate matter emissions at the highest
classification level for diesel emission
control strategies that is applicable to the particular
engine and application. Such technology shall
not result in a net increase in nitrogen oxides.
(2) "Heavy duty
vehicle" or "vehicle" means any on-road or non-road vehicle
powered by
diesel fuel and having a gross vehicle weight of greater
than fourteen thousand (14,000) pounds,
or in the case of a nonroad
vehicle, powered by diesel fuel and an engine with a rating of at least
seventy-five (75) horsepower, including, but not limited to,
non-stationary generators.
(3) “DEM” means the
(4) "Director"
means the director of DEM.
(5) “DOT” means the
(6) "Level 1
control" means a verified diesel emission control device that achieves a
particulate
matter (PM) reduction of twenty-five percent (25%) or more compared to
uncontrolled
engine
emissions levels.
(7) "Level 2
control" means a verified diesel emission control device that achieves a
particulate matter (PM) emission reduction of fifty percent (50%)
or more compared to
uncontrolled engine emission levels.
(8) "Level 3
control" means a verified diesel emission control device that achieves a
particulate
matter (PM) emission reduction of eighty-five percent (85%) or more
compared to uncontrolled engine emission levels, or that
reduces emissions to less than or equal
to one one-hundredth (0.01) grams of (PM) per brake
horsepower-hour. Level 3 control includes
repowering or replacing the existing diesel engine with an
engine meeting US EPA's 2007
Heavy-duty Highway Diesel Standards, published in
the federal register at 66 Fed. Reg. 5001
(January 18, 2001), or in the case of a nonroad engine, an
engine meeting the US EPA's Tier 4
Nonroad Diesel Standards, published in the federal
register at 69 Fed. Reg. 38957 (June 19,
2004).
(9) "Closed
crankcase ventilation system (CCV)" means a system that separates oil and
other contaminant from the blow-by gases and routes the
blow-by gases into a diesel engine's
intake system downstream of air filter.
(10) "Full-sized
school bus" means a school bus, as defined in (
section (31-1-3), which is a type 1 diesel school bus,
including spare buses operated by or under
contract to a school district, but not including emergency
contingency vehicles or low usage
vehicles.
(11) "Verified
emissions control device" means a device that has been verified by the
federal Environmental Protection Agency or the California Air
Resources Board to reduce
particulate matter emissions by a given amount.
(12) "Ultra low
sulfur diesel fuel" means diesel fuel having sulfur content of fifteen
parts
per million (15ppm) of sulfur or less, as defined by the
40 CFR section 80.520.
(13) “State agency”
means each state board, commission, department, or officer, other
than quasi-public corporations, the legislature or the
courts, authorized by law to make rules or to
determine contested cases.
(14) “Public works
contract” means a contract with a state agency for a construction
program or project involving the construction, demolition,
restoration, rehabilitation, repair,
renovation, or abatement of any building, structure, tunnel,
excavation, roadway, park or bridge; a
contract with a state agency regarding the preparation for any
construction program or project
involving the construction, demolition, restoration, rehabilitation,
repair, renovation, or abatement
of any building, structure, tunnel, excavation, roadway,
park or bridge; or a contract with a state
agency for any final work involved in the completion of any
construction program or project
involving the construction, demolition, restoration,
rehabilitation, repair, renovation, or abatement
of any building, structure, tunnel, excavation, roadway,
park or bridge.
(15) “Contractor”
means any person contracting directly or indirectly with the state to
provide labor, services, materials and/or equipment for the
performance of a public works
contract. Contractor includes a prime contractor,
subcontractor, and any contractor(s) hired by
such subcontractor.
(16) “CMAQ” means the
federal congestion mitigation and air quality improvement
program, reauthorized by congress in 2005 by Sections 1101,
1103 and 1808 of the safe,
accountable, flexible, efficient transportation equity act: a
legacy for users (SAFETEA–LU)
(Pub.L. 109–59, Aug. 10, 2005).
SAFETEA-LU requires states and metropolitan planning
organizations to give priority in distributing CMAQ funds for
diesel engine retrofit projects, as
well as other cost-effective emission reduction and
congestion mitigation activities that benefit air
quality.
(17) “DERA” means the
federal diesel emission reduction act, enacted by congress as
sections 791 through 797 of the energy policy Act of 2005
(Pub. L. 109–58, Aug. 8, 2005).
(18) “Fleet owner”
means a person, business or the state that owns ten (10) or more
heavy duty vehicles” operating in
owned and operated by a person, business or state.
(19) “Inventory list”
means a list of all equipment owned, rented, or leased by a
contractor.
(20) “Equipment list”
means a list of all equipment owned, rented, or leased to be used on
site.
(21) The “state”
shall mean “state agencies or when related to “contractors” in this
statute, the “state” shall mean the procuring agency or
procuring agent.
31-47.3-3.
Reducing emissions from school buses. – (a)
Purpose. To reduce health
risks from diesel particulate matter (DPM) to
reducing tailpipe emissions from school buses, and preventing
engine emissions from entering the
passenger cabin of the buses.
(b) Requirements for
(i)
By September 1, 2010, no full-size school bus with an engine model year 1993 or
older may be used to transport school children in
(ii) By September 1,
2010 any new bus added to current bus fleets or after September 1,
2010 whenever a new contract is entered into by a
city, town, school district or the state all busses
included in that contract shall be equipped with a closed
crankcase ventilation system and either:
(A) Shall be equipped with a Level 1, Level 2, or
Level 3 device verified by the
Environmental Protection Agency or the
equipped with an engine of model year 2007 or newer; or (C)
Shall achieve the same or higher
diesel PM reductions through the use of alternative fuel
such as compressed natural gas verified
by CARB/EPA to reduce DPM emissions at a level
equivalent to or higher than subparagraph
(b)(ii)(B) above; and,
(ii)(iii)
Providing there is sufficient federal or state monies, by September 1, 20102012,
all full-sized school buses transporting children in
crankcase ventilation system and either: (A) be equipped with a
level 1, level 2, or level 3 device
verified by the US Environmental Protection Agency or the
California Air Resources Board; or
(B) be equipped with an
engine of model year 2007 or newer; or (C) achieve the same or higher
diesel PM reductions through the use of an alternative fuel
such as compressed natural gas
verified by CARB/EPA to reduce DPM emissions at a level
equivalent to or higher than
subsection subparagraph (b)(iii)(B) above.
(c)
Financial assistance to defray costs of pollution reductions called for in (b)(ii):
(i) DEM The director shall work with the
other authorized transit agencies to maximize the
allocation of federal grants and loan monies
provided for
program (CMAQ) for congestion
mitigation and air quality (CMAQ) money for
diesel emissions reductions in federal FY 2008 and
thereafter until the retrofit goals in this act are
met. The (CMAQ) program is jointly administered by the
federal highway administration
(FHWA) and the federal transit administration (FTA), and
was reauthorized by congress in 2005
under the safe, accountable, flexible, and efficient
transportation equity act: A legacy for users
(SAFETEA-LU). The (SAFETEA-LU) requires states and MPOs to give priority in distributing
CMAQ funds to diesel engine retrofits, and other
cost-effective emission reduction and
congestion mitigation activities that benefit air quality.
(ii)
Drawing upon any available federal or state monies, the director shall
establish and
implement a system of providing incentives reimbursements
consistent with this section to
municipalities, vendors, or school bus owners for the purchase and
installation of any
CARB/EPA-verified emission control retrofit device
together with the purchase and installation
of closed crankcase ventilation system (CCV) retrofit
device. In 2007, the per-unit incentive shall
not exceed one thousand two hundred fifty dollars
($1,250) for a level 1 device plus a CCV, or
two thousand five hundred dollars ($2,500) for a level 2
device plus a CCV, or for model years
2003-2006 five thousand dollars
($5,000) for a level 3 device plus a CCV. Incentive levels may
be reevaluated annually, with the goal of maintaining
competition in the market for retrofit
devices. To the
extent practicable, in kind services will also be utilized to offset some of
the costs.
Reimbursement recipients must also certify that newly
purchased or retrofitted buses with a level
3 technology will operate in the state of
bus fleet owner’s contract with the school district or
state has expired.
(d)
Priority community provision:
(i) When penalty funds, state SEP funds, federal
funds or funds from other state or non-
state other sources become available, these
should first be allocated toward further offsetting
costs of achieving "best available" emissions
control in "priority communities"; for use under
subsection (c), these shall be allocated by the director, to the
extent practicable, as follows: (A)
First, for control of emissions from school buses
operating primarily in urban core or urban ring
cities. Buses operating primarily in urban core or urban
ring cities must be retrofitted to the best
available standard as defined in paragraph (d)(iii); (B) Next,
for control of emissions from buses
not operating primarily in urban core or urban ring
cities. (C) Lastly, for buses operating
primarily in urban core or urban ring cities already
retrofitted with a level 1, level 2, or level 3
and/or crankcase ventilator device but that do not meet the
best available standard as defined in
paragraph (d)(iii). Buses already meeting the best available
standard as defined in paragraph
(d)(iii) will not be
considered for this retrofitting program and municipalities, vendors, or school
bus owners owning equipment retrofitted either prior to
the implementation of this retrofit
program or through another retrofit program with a level 1,
level 2, level 3 and/or crankcase
ventilator device will not be reimbursed as outlined in
paragraph (c)(ii).
(ii) Fleet owners
currently holding contracts with
prioritization scheme as determined by the director and work with
DEM to ensure that (A) By
September 1, 2012 all buses are retrofit as outlined
in paragraph (b)(iii); and (B) By September 1,
2010 no new bus may be added to their current fleets
unless they meet standards outlined in
paragraph (b)(ii).
(ii)(iii)
The "best available" standard is attained by all new buses (engine
MY2007 and
newer) and; by diesel buses engine
model year 2003 to 2006, inclusive, that has have been
retrofitted with level 3-verified diesel particulate filters and
closed crankcase ventilation systems,
;provided, however, that if DEM finds that the cost of a level
3 verified diesel particulate filter is
not reasonable or otherwise not appropriate for use on a
particular engine, the standard shall be at
least a level 1 verified diesel emission control device and
closed crankcase ventilation system;
by
diesel buses engine model year 1994 to 2002,
inclusive, that has been retrofitted with at least
level 21-verified diesel particulate
filters emission control devices and closed crankcase
ventilation systems or could be achieved with a natural gas;
and by natural gas buses that achieve
the same or better emissions standards as a 2007 engine
model year diesel bus. bus that achieves
the same or better standards of cleanliness as a 2007
diesel bus standard; and
(iii)(iv)
"Priority communities" “Urban core cities” (to be
identified by the Rhode
Island DEM) means
are Rhode
Island communities that have high levels of ambient
air pollution and high incidence of childhood
respiratory impacts.
(v) “Urban ring
cities” means North Providence,
(e) To achieve the
pressing public health and environmental goals of this act, DEM shall
identify opportunities to achieve maximize PM reductions from
diesel powered heavy duty
vehicle or equipment that is owned by, operated by, or on
behalf of, or leased by, or operating
under a contact contract to a state agency or
state or regional public authority (except vehicles
that are specifically equipped for emergency response) and
diesel powered waste collection and
recycling vehicles that are owned, leased, or contracted to
perform the removal or transfer or
municipal, commercial or residential waste, or recycling
services. No later than January 1, 2008,
DEM shall present a report to the general assembly,
governor, house committee on environment
and natural resources, and the senate committee on
environment and agriculture on such
opportunities to maximum PM reductions from the aforementioned
fleets including legislative
changes, regulatory changes, funding sources, contract
requirements, procurement requirements,
and other mechanisms that will bring about maximum PM
reductions from these two priority
fleets. This report shall explore funding sources beyond
CMAQ, including but not limited to
Diesel Reductions Emissions Reduction Act (DERA) funds
under the Federal Energy Act.
(f)
Severability. If any clause, sentence, paragraph, section or part of this act
shall be
adjudged by any court of competent jurisdiction to be invalid
and after exhaustion of all further
judicial review, the judgment shall not affect, impair or
invalidate the remainder thereof, but shall
be confined in its operation to the clause, sentence,
paragraph, section or part of this act directly
involved in the controversy in which the judgment shall have
been rendered.
SECTION 3. Section 44-18-30 of the General Laws in Chapter
44-18 entitled "Sales and
Use Taxes - Liability and
Computation" is hereby amended to read as follows:
44-18-30. Gross
receipts exempt from sales and use taxes. -- There are exempted from
the taxes imposed by this chapter the following gross
receipts:
(1) Sales and uses
beyond constitutional power of state. - From the sale and from the
storage, use, or other consumption in this state of tangible
personal property the gross receipts
from the sale of which, or the storage, use, or other
consumption of which, this state is prohibited
from taxing under the Constitution of the
(2) Newspapers.
(i)
From the sale and from the storage, use, or other consumption in this state of
any
newspaper.
(ii)
"Newspaper" means an unbound publication printed on newsprint, which
contains
news, editorial comment, opinions, features, advertising
matter, and other matters of public
interest.
(iii)
"Newspaper" does not include a magazine, handbill, circular, flyer,
sales catalog, or
similar item unless the item is printed for and distributed
as a part of a newspaper.
(3) School meals. -
From the sale and from the storage, use, or other consumption in this
state of meals served by public, private, or parochial
schools, school districts, colleges,
universities, student organizations, and parent teacher
associations to the students or teachers of a
school, college, or university whether the meals are served
by the educational institutions or by a
food service or management entity under contract to the
educational institutions.
(4) Containers.
(i)
From the sale and from the storage, use, or other consumption in this state of:
(A) Non-returnable
containers, including boxes, paper bags, and wrapping materials
which are biodegradable and all bags and wrapping materials
utilized in the medical and healing
arts, when sold without the contents to persons who place
the contents in the container and sell
the contents with the container.
(B) Containers when
sold with the contents if the sale price of the contents is not
required to be included in the measure of the taxes imposed by
this chapter.
(C) Returnable
containers when sold with the contents in connection with a retail sale of
the contents or when resold for refilling.
(ii) As used in this
subdivision, the term "returnable containers" means containers of a
kind customarily returned by the buyer of the contents for
reuse. All other containers are "non-
returnable containers."
(5) (i) Charitable, educational, and
religious organizations. - From the sale to as in
defined in this section, and from the storage, use, and other
consumption in this state or any other
state of the
profit, "educational institutions" as defined in
subdivision (18) not operated for a profit, churches,
orphanages, and other institutions or organizations operated
exclusively for religious or charitable
purposes, interest free loan associations not operated for
profit, nonprofit organized sporting
leagues and associations and bands for boys and girls under
the age of nineteen (19) years, the
following vocational student organizations that are state
chapters of national vocational students
organizations: Distributive Education Clubs of America, (DECA);
Future Business Leaders of
of America/Home Economics Related Occupations
(FHA/HERD); and Vocational Industrial
Clubs of America (VICA), organized nonprofit golden
age and senior citizens clubs for men and
women, and parent teacher associations.
(ii) In the case of
contracts entered into with the federal government, its agencies or
instrumentalities, this state or any other state of the
city, town, district, or other political subdivision of
the states, hospitals not operated for profit,
educational institutions not operated for profit, churches,
orphanages, and other institutions or
organizations operated exclusively for religious or charitable
purposes, the contractor may
purchase such materials and supplies (materials and/or
supplies are defined as those which are
essential to the project) that are to be utilized in the
construction of the projects being performed
under the contracts without payment of the tax.
(iii) The contractor
shall not charge any sales or use tax to any exempt agency,
institution, or organization but shall in that instance provide
his or her suppliers with certificates
in the form as determined by the division of taxation
showing the reason for exemption; and the
contractor's records must substantiate the claim for exemption by
showing the disposition of all
property so purchased. If any property is then used for a
nonexempt purpose, the contractor must
pay the tax on the property used.
(6) Gasoline. - From
the sale and from the storage, use, or other consumption in this state
of: (i) gasoline and other
products taxed under chapter 36 of title 31, and (ii) fuels used for the
propulsion of airplanes.
(7) Purchase for
manufacturing purposes.
(i)
From the sale and from the storage, use, or other consumption in this state of
computer software, tangible personal property, electricity,
natural gas, artificial gas, steam,
refrigeration, and water, when the property or service is purchased
for the purpose of being
manufactured into a finished product for resale, and becomes an
ingredient, component, or
integral part of the manufactured, compounded, processed,
assembled, or prepared product, or if
the property or service is consumed in the process of
manufacturing for resale computer software,
tangible personal property, electricity, natural gas,
artificial gas, steam, refrigeration, or water.
(ii)
"Consumed" means destroyed, used up, or worn out to the degree or
extent that the
property cannot be repaired, reconditioned, or rendered fit
for further manufacturing use.
(iii)
"Consumed" includes mere obsolescence.
(iv)
"Manufacturing" means and includes manufacturing, compounding,
processing,
assembling, preparing, or producing.
(v) "Process of
manufacturing" means and includes all production operations performed
in the producing or processing room, shop, or plant,
insofar as the operations are a part of and
connected with the manufacturing for resale of tangible
personal property, electricity, natural gas,
artificial gas, steam, refrigeration, or water and all
production operations performed insofar as the
operations are a part of and connected with the manufacturing
for resale of computer software.
(vi) "Process of
manufacturing" does not mean or include administration operations such
as general office operations, accounting, collection,
sales promotion, nor does it mean or include
distribution operations which occur subsequent to production
operations, such as handling,
storing, selling, and transporting the manufactured products,
even though the administration and
distribution operations are performed by or in connection with a
manufacturing business.
(8) State and political
subdivisions. - From the sale to, and from the storage, use, or other
consumption by, this state, any city, town, district, or other
political subdivision of this state.
Every redevelopment agency created pursuant to chapter
31 of title 45 is deemed to be a
subdivision of the municipality where it is located.
(9) Food and food
ingredients. - From the sale and storage, use, or other consumption in
this state of food and food ingredients as defined in section
44-18-7.1(l).
For the purposes of
this exemption "food and food ingredients" shall not include candy,
soft drinks, dietary supplements, alcoholic beverages,
tobacco, food sold through vending
machines or prepared food (as those terms are defined in
section 44-18-7.1, unless the prepared
food is:
(i)
Sold by a seller whose primary NAICS classification is manufacturing in sector
311,
except sub-sector 3118 (bakeries);
(ii)
Sold in an unheated state by weight or volume as a single item;
(iii) Bakery items,
including bread, rolls, buns, biscuits, bagels, croissants, pastries,
donuts, danish, cakes, tortes,
pies, tarts, muffins, bars, cookies, tortillas; and
is
not sold with utensils provided by the seller, including plates, knives, forks,
spoons,
glasses, cups, napkins, or straws.
(10) Medicines, drugs
and durable medical equipment. - From the sale and from the
storage, use, or other consumption in this state, of;
(i)
"Drugs" as defined in section 44-18-7.1(h)(i), sold on prescriptions, medical oxygen,
and insulin whether or not sold on prescription, and
over-the-counter drugs as defined in section
44-18-7.1(h)(ii). For
purposes of this exemption over-the-counter drugs shall not include
grooming and hygiene products as defined in section
44-18-7.1(h)(iii).
(ii) Durable medical
equipment as defined in section 44-18-7.1(k) for home use only,
including, but not limited to, syringe infusers, ambulatory
drug delivery pumps, hospital beds,
convalescent chairs, and chair lifts. Supplies used in connection
with syringe infusers and
ambulatory drug delivery pumps which are sold on prescription to
individuals to be used by them
to dispense or administer prescription drugs, and
related ancillary dressings and supplies used to
dispense or administer prescription drugs shall also be exempt
from tax.
(11) Prosthetic devices
and mobility enhancing equipment. - From the sale and from the
storage, use, or other consumption in this state, of
prosthetic devices as defined in section 44-18-
7.1(t), sold on prescription, including but not
limited to, artificial limbs, dentures, spectacles and
eyeglasses, and artificial eyes; artificial hearing devices and
hearing aids, whether or not sold on
prescription and mobility enhancing equipment as defined in
section 44-18-7.1(p) including
wheelchairs, crutches and canes.
(12) Coffins, caskets,
and burial garments. - From the sale and from the storage, use, or
other consumption in this state of coffins or caskets, and
shrouds or other burial garments which
are ordinarily sold by a funeral director as part of the
business of funeral directing.
(13) Motor vehicles
sold to nonresidents.
(i)
From the sale, subsequent to June 30, 1958, of a motor vehicle to a bona fide
nonresident of this state who does not register the motor vehicle
in this state, whether the sale or
delivery of the motor vehicle is made in this state or at the
place of residence of the nonresident.
A motor vehicle sold to a bona fide nonresident whose
state of residence does not allow a like
exemption to its nonresidents is not exempt from the tax
imposed under section 44-18-20. In that
event the bona fide nonresident pays a tax to
that would be imposed in his or her state of residence not
to exceed the rate that would have been
imposed under section 44-18-20. Notwithstanding any other
provisions of law, a licensed motor
vehicle dealer shall add and collect the tax required under
this subdivision and remit the tax to the
tax administrator under the provisions of chapters 18 and
19 of this title. When a
licensed motor vehicle dealer is required to add and collect
the sales and use tax on the sale of a
motor vehicle to a bona fide nonresident as provided in
this section, the dealer in computing the
tax takes into consideration the law of the state of the
nonresident as it relates to the trade-in of
motor vehicles.
(ii) The tax
administrator, in addition to the provisions of sections 44-19-27 and 44-19-
28, may require any licensed motor vehicle dealer to
keep records of sales to bona fide
nonresidents as the tax administrator deems reasonably necessary
to substantiate the exemption
provided in this subdivision, including the affidavit of a
licensed motor vehicle dealer that the
purchaser of the motor vehicle was the holder of, and had in
his or her possession a valid out of
state motor vehicle registration or a valid out of state
driver's license.
(iii) Any nonresident
who registers a motor vehicle in this state within ninety (90) days
of the date of its sale to him or her is deemed to have
purchased the motor vehicle for use,
storage, or other consumption in this state, and is subject
to, and liable for the use tax imposed
under the provisions of section 44-18-20.
(14) Sales in public
buildings by blind people. - From the sale and from the storage, use,
or other consumption in all public buildings in this
state of all products or wares by any person
licensed under section 40-9-11.1.
(15) Air and water
pollution control facilities. - From the sale, storage, use, or other
consumption in this state of tangible personal property or
supplies acquired for incorporation into
or used and consumed in the operation of a facility, the
primary purpose of which is to aid in the
control of the pollution or contamination of the waters or
air of the state, as defined in chapter 12
of title 46 and chapter 25 of title 23, respectively,
and which has been certified as approved for
that purpose by the director of environmental management.
The director of environmental
management may certify to a portion of the tangible personal
property or supplies acquired for
incorporation into those facilities or used and consumed in the
operation of those facilities to the
extent that that portion has as its primary purpose the
control of the pollution or contamination of
the waters or air of this state. As used in this
subdivision, "facility" means any land, facility,
device, building, machinery, or equipment.
(16) Camps. - From the
rental charged for living quarters, or sleeping or housekeeping
accommodations at camps or retreat houses operated by religious,
charitable, educational, or
other organizations and associations mentioned in
subdivision (5), or by privately owned and
operated summer camps for children.
(17) Certain
institutions. - From the rental charged for living or sleeping quarters in an
institution licensed by the state for the hospitalization,
custodial, or nursing care of human beings.
(18) Educational
institutions. - From the rental charged by any educational institution for
living quarters, or sleeping or housekeeping accommodations
or other rooms or accommodations
to any student or teacher necessitated by attendance at
an educational institution. "Educational
institution" as used in this section means an institution of
learning not operated for profit which is
empowered to confer diplomas, educational, literary, or
academic degrees, which has a regular
faculty, curriculum, and organized body of pupils or students
in attendance throughout the usual
school year, which keeps and furnishes to students and
others records required and accepted for
entrance to schools of secondary, collegiate, or graduate
rank, no part of the net earnings of which
inures to the benefit of any individual.
(19) Motor vehicle and
adaptive equipment for persons with disabilities.
(i)
From the sale of: (A) special adaptations, (B) the component parts of the
special
adaptations, or (C) a specially adapted motor vehicle; provided,
that the owner furnishes to the
tax administrator an affidavit of a licensed physician to
the effect that the specially adapted motor
vehicle is necessary to transport a family member with a
disability or where the vehicle has been
specially adapted to meet the specific needs of the person with
a disability. This exemption
applies to not more than one motor vehicle owned and
registered for personal, noncommercial
use.
(ii) For the purpose of
this subsection the term "special adaptations" includes, but is not
limited to: wheelchair lifts; wheelchair carriers; wheelchair
ramps; wheelchair securements; hand
controls; steering devices; extensions, relocations, and
crossovers of operator controls; power-
assisted controls; raised tops or dropped floors; raised entry
doors; or alternative signaling
devices to auditory signals.
(iii) From the sale of:
(a) special adaptations, (b) the component parts of the special
adaptations, for a "wheelchair accessible taxicab" as
defined in section 39-14-1 and/or a
"wheelchair accessible
public motor vehicle" as defined in section 39-14.1-1.
(iv)
For the purpose of this subdivision the exemption for a "specially
adapted motor
vehicle" means a use tax credit not to exceed the amount
of use tax that would otherwise be due
on the motor vehicle, exclusive of any adaptations. The
use tax credit is equal to the cost of the
special adaptations, including installation.
(20) Heating fuels. -
From the sale and from the storage, use, or other consumption in
this state of every type of fuel used in the heating of
homes and residential premises.
(21) Electricity and
gas. - From the sale and from the storage, use, or other consumption
in this state of electricity and gas furnished for
domestic use by occupants of residential premises.
(22) Manufacturing
machinery and equipment.
(i)
From the sale and from the storage, use, or other consumption in this state of
tools,
dies, and molds, and machinery and equipment (including
replacement parts), and related items to
the extent used in an industrial plant in connection with
the actual manufacture, conversion, or
processing of tangible personal property, or to the extent used
in connection with the actual
manufacture, conversion or processing of computer software as
that term is utilized in industry
numbers 7371, 7372, and 7373 in the standard industrial
classification manual prepared by the
technical committee on industrial classification, office of
statistical standards, executive office of
the president,
machinery and equipment used in the furnishing of power to an
industrial manufacturing plant.
For the purposes of this subdivision, "industrial
plant" means a factory at a fixed location
primarily engaged in the manufacture, conversion, or processing
of tangible personal property to
be sold in the regular course of business;
(ii) Machinery and
equipment and related items are not deemed to be used in connection
with the actual manufacture, conversion, or processing of
tangible personal property, or in
connection with the actual manufacture, conversion or processing
of computer software as that
term is utilized in industry numbers 7371, 7372, and 7373
in the standard industrial classification
manual prepared by the technical committee on industrial
classification, office of statistical
standards, executive office of the president,
time to time, to be sold to the extent the property is
used in administration or distribution
operations;
(iii) Machinery and
equipment and related items used in connection with the actual
manufacture, conversion, or processing of any computer software
or any tangible personal
property which is not to be sold and which would be exempt
under subdivision (7) or this
subdivision if purchased from a vendor or machinery and equipment
and related items used
during any manufacturing, converting or processing function
is exempt under this subdivision
even if that operation, function, or purpose is not an
integral or essential part of a continuous
production flow or manufacturing process;
(iv)
Where a portion of a group of portable or mobile machinery is used in
connection
with the actual manufacture, conversion, or processing of
computer software or tangible personal
property to be sold, as previously defined, that portion, if
otherwise qualifying, is exempt under
this subdivision even though the machinery in that group
is used interchangeably and not
otherwise identifiable as to use.
(23) Trade-in value of
motor vehicles. - From the sale and from the storage, use, or other
consumption in this state of so much of the purchase price paid
for a new or used automobile as is
allocated for a trade-in allowance on the automobile of the
buyer given in trade to the seller or of
the proceeds applicable only to the motor vehicle as are
received from an insurance claim as a
result of a stolen or damaged motor vehicle, or of the proceeds
applicable only to the automobile
as are received from the manufacturer of automobiles for
the repurchase of the automobile
whether the repurchase was voluntary or not towards the
purchase of a new or used automobile
by the buyer; provided, that the proceeds from an
insurance claim or repurchase is in lieu of the
benefit prescribed in section 44-18-21 for the total loss or
destruction of the automobile; and
provided, further, that the tax has not been reimbursed as
part of the insurance claim or
repurchase. For the purpose of this subdivision, the word
"automobile" means a private passenger
automobile not used for hire and does not refer to any other
type of motor vehicle.
(24) Precious metal
bullion.
(i)
From the sale and from the storage, use, or other consumption in this state of
precious
metal bullion, substantially equivalent to a transaction in
securities or commodities.
(ii) For purposes of
this subdivision, "precious metal bullion" means any elementary
precious metal which has been put through a process of
smelting or refining, including, but not
limited to, gold, silver, platinum, rhodium, and chromium,
and which is in a state or condition
that its value depends upon its content and not upon its
form.
(iii) The term does not
include fabricated precious metal which has been processed or
manufactured for some one or more specific and customary
industrial, professional, or artistic
uses.
(25) Commercial
vessels. - From sales made to a commercial ship, barge, or other vessel
of fifty (50) tons burden or over, primarily engaged in
interstate or foreign commerce, and from
the repair, alteration, or conversion of the vessels, and
from the sale of property purchased for the
use of the vessels including provisions, supplies, and
material for the maintenance and/or repair
of the vessels.
(26) Commercial fishing
vessels. - From the sale and from the storage, use, or other
consumption in this state of vessels and other water craft which
are in excess of five (5) net tons
and which are used exclusively for "commercial
fishing", as defined in this subdivision, and from
the repair, alteration, or conversion of those vessels
and other watercraft, and from the sale of
property purchased for the use of those vessels and other
watercraft including provisions,
supplies, and material for the maintenance and/or repair of
the vessels and other watercraft and
the boats nets, cables, tackle, and other fishing
equipment appurtenant to or used in connection
with the commercial fishing of the vessels and other
watercraft. "Commercial fishing" means the
taking or the attempting to take any fish, shellfish, crustacea, or bait species with the intent of
disposing of them for profit or by sale, barter, trade, or in
commercial channels. The term does
not include subsistence fishing, i.e., the taking for
personal use and not for sale or barter; or sport
fishing; but shall include vessels and other watercraft with
a
license issued by the department of environmental management
pursuant to section 20-2-27.1
which meet the following criteria: (i)
the operator must have a current U.S.C.G. license to carry
passengers for hire; (ii) U.S.C.G. vessel documentation in the
coast wide fishery trade; (iii)
U.S.C.G. vessel documentation as to proof of
boat registration to prove
commercial passenger carrying fishing vessel to carry passengers
for fishing. The vessel must be
able to demonstrate that at least fifty percent (50%) of
its annual gross income derives from
charters or provides documentation of a minimum of one hundred
(100) charter trips annually; (v)
the vessel must have a valid
shall implement the provisions of this subdivision by
promulgating rules and regulations relating
thereto.
(27) Clothing and
footwear. - From the sales of articles of clothing, including footwear,
intended to be worn or carried on or about the human body. For
the purposes of this section,
"clothing or
footwear" does not include clothing accessories or equipment or special
clothing or
footwear primarily designed for athletic activity or
protective use as these terms are defined in
section 44-18-7.1(f).
(28) Water for
residential use. - From the sale and from the storage, use, or other
consumption in this state of water furnished for domestic use by
occupants of residential
premises.
(29) Bibles. -
[Unconstitutional; see Ahlburn v.
Notes to Decisions.]From the sale and from the storage, use, or other
consumption in the state of
any canonized scriptures of any tax-exempt nonprofit
religious organization including, but not
limited to, the Old Testament and the New Testament versions.
(30) Boats.
(i)
From the sale of a boat or vessel to a bona fide nonresident of this state who
does not
register the boat or vessel in this state, or document the
boat or vessel with the
government at a home port within the state, whether the sale or
delivery of the boat or vessel is
made in this state or elsewhere; provided, that the
nonresident transports the boat within thirty
(30) days after delivery by
the seller outside the state for use thereafter solely outside the state.
(ii) The tax
administrator, in addition to the provisions of sections 44-19-17 and 44-19-
28, may require the seller of the boat or vessel to
keep records of the sales to bona fide
nonresidents as the tax administrator deems reasonably necessary
to substantiate the exemption
provided in this subdivision, including the affidavit of the
seller that the buyer represented
himself or herself to be a bona fide nonresident of this
state and of the buyer that he or she is a
nonresident of this state.
(31) Youth activities
equipment. - From the sale, storage, use, or other consumption in
this state of items for not more than twenty dollars
($20.00) each by nonprofit
eleemosynary organizations, for the purposes of youth activities
which the organization is formed
to sponsor and support; and by accredited elementary and
secondary schools for the purposes of
the schools or of organized activities of the enrolled
students.
(32) Farm equipment. -
From the sale and from the storage or use of machinery and
equipment used directly for commercial farming and agricultural
production; including, but not
limited to, tractors, ploughs, harrows, spreaders, seeders,
milking machines, silage conveyors,
balers, bulk milk storage tanks, trucks with farm plates,
mowers, combines, irrigation equipment,
greenhouses and greenhouse coverings, graders and packaging
machines, tools and supplies and
other farming equipment, including replacement parts,
appurtenant to or used in connection with
commercial farming and tools and supplies used in the repair and
maintenance of farming
equipment. "Commercial farming" means the keeping or
boarding of five (5) or more horses or
the production within this state of agricultural
products, including, but not limited to, field or
orchard crops, livestock, dairy, and poultry, or their
products, where the keeping, boarding, or
production provides at least two thousand five hundred dollars
($2,500) in annual gross sales to
the operator, whether an individual, a group, a
partnership, or a corporation for exemptions issued
prior to July 1, 2002; for exemptions issued or renewed
after July 1, 2002, there shall be two (2)
levels. Level I shall be based on proof of annual gross
sales from commercial farming of at least
twenty-five hundred dollars ($2,500) and shall be valid for
purchases subject to the exemption
provided in this subdivision except for motor vehicles with an
excise tax value of five thousand
dollars ($5,000) or greater; Level II shall be based on proof
of annual gross sales from
commercial farming of at least ten thousand dollars ($10,000) or
greater and shall be valid for
purchases subject to the exemption provided in this subdivision
including motor vehicles with an
excise tax value of five thousand dollars ($5,000) or
greater. For the initial issuance of the
exemptions, proof of the requisite amount of annual gross sales
from commercial farming shall be
required for the prior year; for any renewal of an exemption
granted in accordance with this
subdivision at either Level I or Level II, proof of gross annual
sales from commercial farming at
the requisite amount shall be required for each of the
prior two (2) years. Certificates of
exemption issued or renewed after July 1, 2002, shall clearly
indicate the level of the exemption
and be valid for four (4) years after the date of issue.
This exemption applies even if the same
equipment is used for ancillary uses, or is temporarily used
for a non-farming or a non-
agricultural purpose, but shall not apply to motor vehicles
acquired after July 1, 2002, unless the
vehicle is a farm vehicle as defined pursuant to section
31-1-8 and is eligible for registration
displaying farm plates as provided for in section 31-3-31.
(33) Compressed air. -
From the sale and from the storage, use, or other consumption in
the state of compressed air.
(34) Flags. - From the
sale and from the storage, consumption, or other use in this state
of
(35) Motor vehicle and
adaptive equipment to certain veterans. - From the sale of a
motor vehicle and adaptive equipment to and for the use of
a veteran with a service-connected
loss of or the loss of use of a leg, foot, hand, or arm,
or any veteran who is a double amputee,
whether service connected or not. The motor vehicle must be
purchased by and especially
equipped for use by the qualifying veteran. Certificate of
exemption or refunds of taxes paid is
granted under rules or regulations that the tax administrator
may prescribe.
(36) Textbooks. - From the
sale and from the storage, use, or other consumption in this
state of textbooks by an "educational
institution" as defined in subdivision (18) of this section and
as well as any educational institution within the
purview of section 16-63-9(4) and used textbooks
by any purveyor.
(37) Tangible personal
property and supplies used in on-site hazardous waste recycling,
reuse, or treatment. - From the sale, storage, use, or
other consumption in this state of tangible
personal property or supplies used or consumed in the
operation of equipment, the exclusive
function of which is the recycling, reuse, or recovery of
materials (other than precious metals, as
defined in subdivision (24)(ii) of this section) from the
treatment of "hazardous wastes", as
defined in section 23-19.1-4, where the "hazardous
wastes" are generated in
by the same taxpayer and where the personal property is
located at, in, or adjacent to a generating
facility of the taxpayer in
the department of environmental management certifying
that the equipment and/or supplies as
used, or consumed, qualify for the exemption under this
subdivision. If any information relating
to secret processes or methods of manufacture,
production, or treatment is disclosed to the
department of environmental management only to procure an order,
and is a "trade secret" as
defined in section 28-21-10(b), it is not open to public
inspection or publicly disclosed unless
disclosure is required under chapter 21 of title 28 or chapter
24.4 of title 23.
(38) Promotional and
product literature of boat manufacturers. - From the sale and from
the storage, use, or other consumption of promotional and
product literature of boat
manufacturers shipped to points outside of Rhode Island which
either: (i) accompany the product
which is sold, (ii) are shipped in bulk to out of state
dealers for use in the sale of the product, or
(iii) are mailed to customers
at no charge.
(39) Food items paid
for by food stamps. - From the sale and from the storage, use, or
other consumption in this state of eligible food items
payment for which is properly made to the
retailer in the form of
Act of 1977, 7 U.S.C. section 2011
et seq.
(40) Transportation
charges. - From the sale or hiring of motor carriers as defined in
section 39-12-2(l) to haul goods, when the contract or hiring
cost is charged by a motor freight
tariff filed with the
the number of hours spent on the job.
(41) Trade-in value of
boats. - From the sale and from the storage, use, or other
consumption in this state of so much of the purchase price paid
for a new or used boat as is
allocated for a trade-in allowance on the boat of the buyer
given in trade to the seller or of the
proceeds applicable only to the boat as are received from an
insurance claim as a result of a stolen
or damaged boat, towards the purchase of a new or used
boat by the buyer.
(42) Equipment used for
research and development. - From the sale and from the
storage, use, or other consumption of equipment to the extent
used for research and development
purposes by a qualifying firm. For the purposes of this
subdivision, "qualifying firm" means a
business for which the use of research and development
equipment is an integral part of its
operation, and "equipment" means scientific
equipment, computers, software, and related items.
(43) Coins. - From the
sale and from the other consumption in this state of coins having
numismatic or investment value.
(44) Farm structure
construction materials. - Lumber, hardware and other materials used
in the new construction of farm structures, including
production facilities such as, but not limited
to, farrowing sheds, free
stall and stanchion barns, milking parlors, silos, poultry barns, laying
houses, fruit and vegetable storages, rooting cellars,
propagation rooms, greenhouses, packing
rooms, machinery storage, seasonal farm worker housing,
certified farm markets, bunker and
trench silos, feed storage sheds, and any other structures
used in connection with commercial
farming.
(45) Telecommunications
carrier access service. - Carrier access service or
telecommunications service when purchased by a telecommunications
company from another
telecommunications company to facilitate the provision of telecommunications
service.
(46) Boats or vessels
brought into the state exclusively for winter storage, maintenance,
repair or sale. - Notwithstanding the provisions of sections
44-18-10, 44-18-11, 44-18-20, the tax
imposed by section 44-18-20 is not applicable for the period
commencing on the first day of
October in any year to and including the 30th day of
April next succeeding with respect to the use
of any boat or vessel within this state exclusively for
purposes of: (i) delivery of the vessel to a
facility in this state for storage, including dry storage and
storage in water by means of apparatus
preventing ice damage to the hull, maintenance, or repair; (ii)
the actual process of storage,
maintenance, or repair of the boat or vessel; or (iii) storage
for the purpose of selling the boat or
vessel.
(47) Jewelry display
product. - From the sale and from the storage, use, or other
consumption in this state of tangible personal property used to
display any jewelry product;
provided, that title to the jewelry display product is
transferred by the jewelry manufacturer or
seller and that the jewelry display product is shipped out
of state for use solely outside the state
and is not returned to the jewelry manufacturer or
seller.
(48) Boats or vessels
generally. - Notwithstanding the provisions of this chapter, the tax
imposed by sections 44-18-20 and 44-18-18 shall not apply
with respect to the sale and to the
storage, use, or other consumption in this state of any new
or used boat. The exemption provided
for in this subdivision does not apply after October 1,
1993, unless prior to October 1, 1993, the
federal ten percent (10%) surcharge on luxury boats is
repealed.
(49) Banks and
Regulated investment companies interstate toll-free calls. -
Notwithstanding the provisions of this chapter, the
tax imposed by this chapter does not apply to
the furnishing of interstate and international, toll-free
terminating telecommunication service that
is used directly and exclusively by or for the benefit
of an eligible company as defined in this
subdivision; provided, that an eligible company employs on
average during the calendar year no
less than five hundred (500) "full-time equivalent
employees", as that term is defined in section
42-64.5-2. For purposes of
this section, an "eligible company" means a "regulated
investment
company" as that term is defined in the Internal Revenue
Code of 1986, 26 U.S.C. section 1 et
seq., or a corporation to the extent the service is
provided, directly or indirectly, to or on behalf of
a regulated investment company, an employee benefit
plan, a retirement plan or a pension plan or
a state chartered bank.
(50) Mobile and
manufactured homes generally. - From the sale and from the storage,
use, or other consumption in this state of mobile and/or
manufactured homes as defined and
subject to taxation pursuant to the provisions of chapter 44
of title 31.
(51) Manufacturing
business reconstruction materials.
(i)
From the sale and from the storage, use or other consumption in this state of
lumber,
hardware, and other building materials used in the
reconstruction of a manufacturing business
facility which suffers a disaster, as defined in this
subdivision, in this state. "Disaster" means any
occurrence, natural or otherwise, which results in the
destruction of sixty percent (60%) or more
of an operating manufacturing business facility within
this state. "Disaster" does not include any
damage resulting from the willful act of the owner of the
manufacturing business facility.
(ii) Manufacturing
business facility includes, but is not limited to, the structures housing
the production and administrative facilities.
(iii) In the event a
manufacturer has more than one manufacturing site in this state, the
sixty percent (60%) provision applies to the damages
suffered at that one site.
(iv)
To the extent that the costs of the reconstruction materials are
reimbursed by
insurance, this exemption does not apply.
(52) Tangible personal
property and supplies used in the processing or preparation of
floral products and floral arrangements. - From the sale,
storage, use, or other consumption in this
state of tangible personal property or supplies purchased
by florists, garden centers, or other like
producers or vendors of flowers, plants, floral products, and
natural and artificial floral
arrangements which are ultimately sold with flowers, plants,
floral products, and natural and
artificial floral arrangements or are otherwise used in the
decoration, fabrication, creation,
processing, or preparation of flowers, plants, floral products,
or natural and artificial floral
arrangements, including descriptive labels, stickers, and cards
affixed to the flower, plant, floral
product or arrangement, artificial flowers, spray materials,
floral paint and tint, plant shine, flower
food, insecticide and fertilizers.
(53) Horse food
products. - From the sale and from the storage, use, or other
consumption in this state of horse food products purchased by a
person engaged in the business of
the boarding of horses.
(54) Non-motorized
recreational vehicles sold to nonresidents.
(i)
From the sale, subsequent to June 30, 2003, of a non-motorized recreational
vehicle to
a bona fide nonresident of this state who does not
register the non-motorized recreational vehicle
in this state, whether the sale or delivery of the
non-motorized recreational vehicle is made in this
state or at the place of residence of the nonresident;
provided, that a non-motorized recreational
vehicle sold to a bona fide nonresident whose state of
residence does not allow a like exemption
to its nonresidents is not exempt from the tax imposed
under section 44-18-20; provided, further,
that in that event the bona fide nonresident pays a tax to
to the rate that would be imposed in his or her state of
residence not to exceed the rate that would
have been imposed under section 44-18-20. Notwithstanding
any other provisions of law, a
licensed non-motorized recreational vehicle dealer shall add
and collect the tax required under
this subdivision and remit the tax to the tax
administrator under the provisions of chapters 18 and
19 of this title. Provided, that when a
dealer is required to add and collect the sales and use tax
on the sale of a non-motorized
recreational vehicle to a bona fide nonresident as provided in
this section, the dealer in computing
the tax takes into consideration the law of the state of
the nonresident as it relates to the trade-in
of motor vehicles.
(ii) The tax
administrator, in addition to the provisions of sections 44-19-27 and 44-19-
28, may require any licensed non-motorized
recreational vehicle dealer to keep records of sales to
bona fide nonresidents as the tax administrator deems
reasonably necessary to substantiate the
exemption provided in this subdivision, including the affidavit
of a licensed non-motorized
recreational vehicle dealer that the purchaser of the
non-motorized recreational vehicle was the
holder of, and had in his or her possession a valid
out-of-state non-motorized recreational vehicle
registration or a valid out-of-state driver's license.
(iii) Any nonresident
who registers a non-motorized recreational vehicle in this state
within ninety (90) days of the date of its sale to him or
her is deemed to have purchased the non-
motorized recreational vehicle for use, storage, or other
consumption in this state, and is subject
to, and liable for the use tax imposed under the
provisions of section 44-18-20.
(iv)
"Non-motorized recreational vehicle" means any portable dwelling
designed and
constructed to be used as a temporary dwelling for travel,
camping, recreational, and vacation use
which is eligible to be registered for highway use,
including, but not limited to, "pick-up coaches"
or "pick-up campers," "travel
trailers," and "tent trailers" as those terms are defined in
chapter 1
of title 31.
(55) Sprinkler and fire
alarm systems in existing buildings. - From the sale in this state of
sprinkler and fire alarm systems, emergency lighting and alarm
systems, and from the sale of the
materials necessary and attendant to the installation of those
systems, that are required in
buildings and occupancies existing therein in July 2003, in
order to comply with any additional
requirements for such buildings arising directly from the enactment
of the Comprehensive Fire
Safety Act of 2003, and that are not required by any
other provision of law or ordinance or
regulation adopted pursuant to that Act. The exemption provided
in this subdivision shall expire
on December 31, 2008.
(56) Aircraft. -
Notwithstanding the provisions of this chapter, the tax imposed by
sections 44-18-18 and 44-18-20 shall not apply with respect to
the sale and to the storage, use, or
other consumption in this state of any new or used aircraft
or aircraft parts.
(57) Renewable energy
products. - Notwithstanding any other provisions of Rhode
Island general laws the following products shall also
be exempt from sales tax: solar photovoltaic
modules or panels, or any module or panel that generates
electricity from light; solar thermal
collectors, including, but not limited to, those manufactured
with flat glass plates, extruded
plastic, sheet metal, and/or evacuated tubes; geothermal heat
pumps, including both water-to-
water and water-to-air type pumps; wind turbines; towers
used to mount wind turbines if
specified by or sold by a wind turbine manufacturer; DC to AC
inverters that interconnect with
utility power lines; manufactured mounting racks and ballast
pans for solar collector, module or
panel installation. Not to include materials that could be
fabricated into such racks; monitoring
and control equipment, if specified or supplied by a
manufacturer of solar thermal, solar
photovoltaic, geothermal, or wind energy systems or if required by
law or regulation for such
systems but not to include pumps, fans or plumbing or
electrical fixtures unless shipped from the
manufacturer affixed to, or an integral part of, another item
specified on this list; and solar storage
tanks that are part of a solar domestic hot water system or
a solar space heating system. If the tank
comes with an external heat exchanger it shall also be
tax exempt, but a standard hot water tank is
not exempt from state sales tax.
(58) Returned property.
- The amount charged for property returned by customers upon
rescission of the contract of sale when the entire amount
exclusive of handling charges paid for
the property is refunded in either cash or credit, and
where the property is returned within one
hundred twenty (120) days from the date of delivery.
(59) Dietary
Supplements. - From the sale and from the storage, use or other
consumption of dietary supplements as defined in section
44-18-7.1(l)(v), sold on prescriptions.
(60) Blood. - From the
sale and from the storage, use or other consumption of human
blood.
(61) Prewritten
computer software delivered electronically. - From the sale and from the
storage, use or other consumption of prewritten computer
software delivered electronically or by
load and leave.
(62) Agricultural
products for human consumption. - From the sale and from the storage,
use or other consumption of livestock and poultry of the
kinds of products of which ordinarily
constitute food for human consumption and of livestock of the
kind the products of which
ordinarily constitute fibers for human use.
(63) Diesel emission
control technology. – From the sale and use of diesel retrofit
technology that is required by section 31-47.3-4 of the general
laws.
SECTION 4. This act shall take effect upon passage.
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LC01494/SUB A
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