Chapter 418
2012 -- H 7157 SUBSTITUTE A
Enacted 06/22/12
A N A C T
RELATING TO
TAXATION - GROSS RECEIPTS EXEMPT FROM SALES AND USE
TAXES
Introduced By: Representatives Walsh, and Naughton
Date Introduced: January 18, 2012
It is enacted by the
General Assembly as follows:
SECTION 1. 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. For
purposes of this exemption drugs shall not
include over-the-counter drugs and 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 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. 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
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) 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.
(62) 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.
(63) Feed for certain
animals used in commercial farming. From the sale of feed for
animals as described in subsection 44-18-30(61).
SECTION 2. This act shall take effect upon passage.
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LC00579/SUB A
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