R.I. Gen. Laws § 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 United States or under the constitution of this state.
(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 that 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 that
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.
(D) Keg and barrel containers, whether returnable or not, when sold to alcoholic beverage
producers who place the alcoholic beverages in the containers.
(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 United States of America, of
tangible personal property by hospitals not operated for a 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 student organizations: Distributive Education Clubs of America
(DECA); Future Business Leaders of America, Phi Beta Lambda (FBLA/PBL); Future Farmers
of America (FFA); Future Homemakers of America/Home Economics Related Occupations
(FHA/HERD); Vocational Industrial Clubs of America (VICA); organized nonprofit golden
age and senior citizens clubs for men and women; and parent-teacher associations;
and from the sale, storage, use, and other consumption in this state, of and by the
Industrial Foundation of Burrillville, a Rhode Island domestic nonprofit corporation.
(ii) In the case of contracts entered into with the federal government, its agencies, or
instrumentalities, this state, or any other state of the United States of America,
its agencies, any 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 that 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, or sales promotion, nor does
it mean or include distribution operations that 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 § 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 § 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 § 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 § 44-18-7.1(h)(iii).
(ii) Durable medical equipment as defined in § 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 that 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 § 44-18-7.1(t), sold on prescription, including, but not limited to: artificial limbs, dentures,
spectacles, eyeglasses, and artificial eyes; artificial hearing devices and hearing
aids, whether or not sold on prescription; and mobility enhancing equipment as defined
in § 44-18-7.1(p), including wheelchairs, crutches, and canes.
(12) Coffins, caskets, urns, shrouds and burial garments. From the sale and from the storage, use, or other consumption in this state of coffins,
caskets, burial containers, urns, urn liners, urn vaults, grave liners, grave vaults,
burial tent setups, prayer cards, shrouds, and other burial garments that 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 § 44-18-20. In that event, the bona fide nonresident pays a tax to Rhode Island on the sale
at a rate equal 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 § 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 Rhode
Island 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 §§ 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 § 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 § 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 23 of title 23, respectively, and that 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 subsection (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 that
is empowered to confer diplomas, educational, literary, or academic degrees; that
has a regular faculty, curriculum, and organized body of pupils or students in attendance
throughout the usual school year; that keeps and furnishes to students and others
records required and accepted for entrance to schools of secondary, collegiate, or
graduate rank; and 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 § 39-14-1, and/or a “wheelchair accessible public motor vehicle” as defined in § 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 heating fuel.
(21) Electricity and gas. From the sale and from the storage, use, or other consumption in this state of electricity
and gas.
(22) Manufacturing machinery and equipment.
(i) From the sale and from the storage, use, or other consumption in this state of tools,
dies, molds, machinery, 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,
United States Bureau of the Budget, as revised from time to time, to be sold, or that
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,
United States Bureau of the Budget, as revised from 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
that is not to be sold and that 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 that has been put through a process of smelting or refining, including, but
not limited to: gold, silver, platinum, rhodium, and chromium, and that 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 that 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 watercraft that are in excess of five (5) net tons and that 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 taking or attempting to take any fish, shellfish, crustacea,
or bait species with the intent of disposing of it 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 Rhode Island party and charter boat license
issued by the department of environmental management pursuant to § 20-2-27.1 that meet the following criteria: (i) The operator must have a current United States
Coast Guard (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 Rhode Island home port status or a Rhode Island boat registration to
prove Rhode Island home port status; and (iv) The vessel must be used as a 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; and (v) The vessel must have a valid Rhode Island party and
charter boat license. The tax administrator 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 sales prior to October 1, 2012. Effective October
1, 2012, the exemption will apply to the sales of articles of clothing, including
footwear, intended to be worn or carried on or about the human body up to two hundred
and fifty dollars ($250) of the sales price per item. 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 § 44-18-7.1(f). In recognition of the work being performed by the streamlined sales and use tax
governing board, upon passage of any federal law that authorizes states to require
remote sellers to collect and remit sales and use taxes, this unlimited exemption
will apply as it did prior to October 1, 2012. The unlimited exemption on sales of
clothing and footwear shall take effect on the date that the state requires remote
sellers to collect and remit sales and use taxes.
(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. Clark, 728 A.2d 449 (R.I. 1999); see 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 United States 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 §§ 44-19-27 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 Rhode Island eleemosynary organizations,
for the purposes of youth activities that 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 § 31-1-8 and is eligible for registration displaying farm plates as provided for in § 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 United
States, Rhode Island or POW-MIA flags.
(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 subsection (18) of this section, and
any educational institution within the purview of § 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 § 23-19.1-4, where the “hazardous wastes” are generated in Rhode Island solely by the same taxpayer
and where the personal property is located at, in, or adjacent to a generating facility
of the taxpayer in Rhode Island. The taxpayer shall procure an order from the director
of 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 § 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
that either: (i) Accompany the product that 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 U.S.
government food stamps issued in accordance with the Food Stamp Act of 1977, 7 U.S.C. § 2011 et seq.
(40) Transportation charges. From the sale or hiring of motor carriers as defined in § 39-12-2(12) to haul goods, when the contract or hiring cost is charged by a motor freight tariff
filed with the Rhode Island public utilities commission on the number of miles driven
or by 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 subsection, “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 §§ 44-18-10, 44-18-11 and 44-18-20, the tax imposed by § 44-18-20 is not applicable for the period commencing on the first day of October in any year
up 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 §§ 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 § 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. § 851, 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 that suffers a disaster, as defined in this subdivision, in this
state. “Disaster” means any occurrence, natural or otherwise, that 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 that 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 § 44-18-20; provided, further, that in that event the bona fide nonresident pays a tax to Rhode
Island on the sale at a rate equal 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 § 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 Rhode Island licensed, non-motorized recreational vehicle
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 §§ 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 § 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 that 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 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 §§ 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; and 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 § 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 that 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 § 31-47.3-4.
(63) Feed for certain animals used in commercial farming. From the sale of feed for animals as described in subsection (61) of this section.
(64) Alcoholic beverages. From the sale and storage, use, or other consumption in this state by a Class A licensee
of alcoholic beverages, as defined in § 44-18-7.1, excluding beer and malt beverages; provided, further, notwithstanding § 6-13-1 or any other general or public law to the contrary, alcoholic beverages, as defined
in § 44-18-7.1, shall not be subject to minimum markup.
(65) Seeds and plants used to grow food and food ingredients. From the sale, storage, use, or other consumption in this state of seeds and plants
used to grow food and food ingredients as defined in § 44-18-7.1( l )(i). “Seeds and plants used to grow food and food ingredients” shall not include
marijuana seeds or plants.
(66) Feminine hygiene products. From the sale and from the storage, use, or other consumption of tampons, panty liners,
menstrual cups, sanitary napkins, and other similar products the principal use of
which is feminine hygiene in connection with the menstrual cycle.
(67) “Breast pump collection and storage supplies” means items of tangible personal property used in conjunction with a breast pump
to collect milk expressed from a human breast and to store collected milk until it
is ready for consumption. “Breast pump collection and storage supplies” include, but
are not limited to, breast shields and breast shield connectors; breast pump tubes
and tubing adaptors; breast pump valves and membranes; backflow protectors and backflow
protector adaptors; bottles and bottle caps specific to the operation of the breast
pump; breast milk storage bags; and related items sold as part of a breast pump kit
pre-packaged by the breast pump manufacturer. “Breast pump collection and storage
supplies” does not include: bottles and bottle caps not specific to the operation
of the breast pump; breast pump travel bags and other similar carrying accessories,
including ice packs, labels, and other similar products, unless sold as part of a
breast pump kit pre-packed by the breast pump manufacturer; breast pump cleaning supplies,
unless sold as part of a breast pump kit pre-packaged by the breast pump manufacturer;
nursing bras, bra pads, breast shells, and other similar products; and creams, ointments,
and other similar products that relieve breastfeeding-related symptoms or conditions
of the breasts or nipples.
(68) Trade-in value of motorcycles. 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 motorcycle as is allocated for a
trade-in allowance on the motorcycle of the buyer given in trade to the seller, or
of the proceeds applicable only to the motorcycle as are received from the manufacturer
of motorcycles for the repurchase of the motorcycle whether the repurchase was voluntary
or not towards the purchase of a new or used motorcycle by the buyer. For the purpose
of this subsection, the word “motorcycle” means a motorcycle not used for hire and
does not refer to any other type of motor vehicle.