§ 44-18-30 - Gross receipts exempt from sales and use taxes.
SECTION 44-18-30
§ 44-18-30 Gross receipts exempt fromsales and use taxes. – There are exempted from the taxes imposed by this chapter the following grossreceipts:
(1) Sales and uses beyond constitutional power ofstate. From the sale and from the storage, use, or other consumption inthis state of tangible personal property the gross receipts from the sale ofwhich, or the storage, use, or other consumption of which, this state isprohibited from taxing under the Constitution of the United States or under theconstitution of this state.
(i) From the sale and from the storage, use, or otherconsumption in this state of any newspaper.
(ii) "Newspaper" means an unbound publication printed onnewsprint, 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 forand 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, orparochial schools, school districts, colleges, universities, studentorganizations, and parent teacher associations to the students or teachers of aschool, college, or university whether the meals are served by the educationalinstitutions or by a food service or management entity under contract to theeducational institutions.
(i) From the sale and from the storage, use, or otherconsumption in this state of:
(A) Non-returnable containers, including boxes, paper bags,and wrapping materials which are biodegradable and all bags and wrappingmaterials utilized in the medical and healing arts, when sold without thecontents to persons who place the contents in the container and sell thecontents with the container.
(B) Containers when sold with the contents if the sale priceof the contents is not required to be included in the measure of the taxesimposed by this chapter.
(C) Returnable containers when sold with the contents inconnection with a retail sale of the contents or when resold for refilling.
(ii) As used in this subdivision, the term "returnablecontainers" means containers of a kind customarily returned by the buyer of thecontents for reuse. All other containers are "non-returnable containers."
(5) Charitable, educational, and religiousorganizations. From the sale to as in defined in this section, and from thestorage, use, and other consumption in this state or any other state of theUnited States of America of tangible personal property by hospitals notoperated for a profit, "educational institutions" as defined in subdivision(18) not operated for a profit, churches, orphanages, and other institutions ororganizations operated exclusively for religious or charitable purposes,interest free loan associations not operated for profit, nonprofit organizedsporting leagues and associations and bands for boys and girls under the age ofnineteen (19) years, the following vocational student organizations that arestate chapters of national vocational students organizations: DistributiveEducation Clubs of America, (DECA); Future Business Leaders of America, phibeta lambda (FBLA/PBL); Future Farmers of America (FFA); Future Homemakers ofAmerica/Home Economics Related Occupations (FHA/HERD); and VocationalIndustrial Clubs of America (VICA), organized nonprofit golden age and seniorcitizens clubs for men and women, and parent teacher associations.
(ii) In the case of contracts entered into with the federalgovernment, its agencies or instrumentalities, this state or any other state ofthe United States of America, its agencies, any city, town, district, or otherpolitical subdivision of the states, hospitals not operated for profit,educational institutions not operated for profit, churches, orphanages, andother institutions or organizations operated exclusively for religious orcharitable purposes, the contractor may purchase such materials and supplies(materials and/or supplies are defined as those which are essential to theproject) that are to be utilized in the construction of the projects beingperformed under the contracts without payment of the tax.
(iii) The contractor shall not charge any sales or use tax toany exempt agency, institution, or organization but shall in that instanceprovide his or her suppliers with certificates in the form as determined by thedivision of taxation showing the reason for exemption; and the contractor'srecords must substantiate the claim for exemption by showing the disposition ofall property so purchased. If any property is then used for a nonexemptpurpose, 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 taxedunder chapter 36 of title 31, and (ii) fuels used for the propulsion ofairplanes.
(i) From the sale and from the storage, use, or otherconsumption in this state of computer software, tangible personal property,electricity, natural gas, artificial gas, steam, refrigeration, and water, whenthe property or service is purchased for the purpose of being manufactured intoa finished product for resale, and becomes an ingredient, component, orintegral part of the manufactured, compounded, processed, assembled, orprepared product, or if the property or service is consumed in the process ofmanufacturing 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 thedegree or extent that the property cannot be repaired, reconditioned, orrendered 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 allproduction operations performed in the producing or processing room, shop, orplant, insofar as the operations are a part of and connected with themanufacturing for resale of tangible personal property, electricity, naturalgas, artificial gas, steam, refrigeration, or water and all productionoperations performed insofar as the operations are a part of and connected withthe manufacturing for resale of computer software.
(vi) "Process of manufacturing" does not mean or includeadministration operations such as general office operations, accounting,collection, sales promotion, nor does it mean or include distributionoperations which occur subsequent to production operations, such as handling,storing, selling, and transporting the manufactured products, even though theadministration and distribution operations are performed by or in connectionwith a manufacturing business.
(8) State and political subdivisions. From the saleto, and from the storage, use, or other consumption by, this state, any city,town, district, or other political subdivision of this state. Everyredevelopment agency created pursuant to chapter 31 of title 45 is deemed to bea subdivision of the municipality where it is located.
(9) Food and food ingredients. From the sale andstorage, use, or other consumption in this state of food and food ingredientsas defined in § 44-18-7.1(l).
For the purposes of this exemption "food and foodingredients" shall not include candy, soft drinks, dietary supplements,alcoholic beverages, tobacco, food sold through vending machines or preparedfood (as those terms are defined in § 44-18-7.1, unless the prepared foodis:
(i) Sold by a seller whose primary NAICS classification ismanufacturing in sector 311, except sub-sector 3118 (bakeries);
(ii) Sold in an unheated state by weight or volume as asingle 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, includingplates, 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 onprescriptions, medical oxygen, and insulin whether or not sold on prescription,and over-the-counter drugs as defined in § 44-18-7.1(h)(ii). For purposesof this exemption over-the-counter drugs shall not include grooming and hygieneproducts as defined in § 44-18-7.1(h)(iii).
(ii) Durable medical equipment as defined in section44-18-7.1(k) for home use only, including, but not limited to, syringeinfusers, ambulatory drug delivery pumps, hospital beds, convalescent chairs,and chair lifts. Supplies used in connection with syringe infusers andambulatory drug delivery pumps which are sold on prescription to individuals tobe used by them to dispense or administer prescription drugs, and relatedancillary dressings and supplies used to dispense or administer prescriptiondrugs 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 thisstate, of prosthetic devices as defined in § 44-18-7.1(t), sold onprescription, including but not limited to, artificial limbs, dentures,spectacles and eyeglasses, and artificial eyes; artificial hearing devices andhearing aids, whether or not sold on prescription and mobility enhancingequipment as defined in § 44-18-7.1(p) including wheelchairs, crutches andcanes.
(12) Coffins, caskets, and burial garments. From thesale and from the storage, use, or other consumption in this state of coffinsor caskets, and shrouds or other burial garments which are ordinarily sold by afuneral director as part of the business of funeral directing.
(i) From the sale, subsequent to June 30, 1958, of a motorvehicle to a bona fide nonresident of this state who does not register themotor vehicle in this state, whether the sale or delivery of the motor vehicleis made in this state or at the place of residence of the nonresident. A motorvehicle sold to a bona fide nonresident whose state of residence does not allowa 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 RhodeIsland on the sale at a rate equal to the rate that would be imposed in his orher state of residence not to exceed the rate that would have been imposedunder § 44-18-20. Notwithstanding any other provisions of law, a licensedmotor vehicle dealer shall add and collect the tax required under thissubdivision and remit the tax to the tax administrator under the provisions ofchapters 18 and 19 of this title. When a Rhode Island licensed motor vehicledealer is required to add and collect the sales and use tax on the sale of amotor vehicle to a bona fide nonresident as provided in this section, thedealer in computing the tax takes into consideration the law of the state ofthe 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 vehicledealer to keep records of sales to bona fide nonresidents as the taxadministrator deems reasonably necessary to substantiate the exemption providedin this subdivision, including the affidavit of a licensed motor vehicle dealerthat the purchaser of the motor vehicle was the holder of, and had in his orher possession a valid out of state motor vehicle registration or a valid outof state driver's license.
(iii) Any nonresident who registers a motor vehicle in thisstate within ninety (90) days of the date of its sale to him or her is deemedto have purchased the motor vehicle for use, storage, or other consumption inthis state, and is subject to, and liable for the use tax imposed under theprovisions of § 44-18-20.
(14) Sales in public buildings by blind people. Fromthe sale and from the storage, use, or other consumption in all publicbuildings in this state of all products or wares by any person licensed under§ 40-9-11.1.
(15) Air and water pollution control facilities. Fromthe sale, storage, use, or other consumption in this state of tangible personalproperty or supplies acquired for incorporation into or used and consumed inthe operation of a facility, the primary purpose of which is to aid in thecontrol of the pollution or contamination of the waters or air of the state, asdefined in chapter 12 of title 46 and chapter 25 of title 23, respectively, andwhich has been certified as approved for that purpose by the director ofenvironmental management. The director of environmental management may certifyto a portion of the tangible personal property or supplies acquired forincorporation into those facilities or used and consumed in the operation ofthose facilities to the extent that that portion has as its primary purpose thecontrol 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 livingquarters, or sleeping or housekeeping accommodations at camps or retreat housesoperated by religious, charitable, educational, or other organizations andassociations mentioned in subdivision (5), or by privately owned and operatedsummer camps for children.
(17) Certain institutions. From the rental charged forliving or sleeping quarters in an institution licensed by the state for thehospitalization, custodial, or nursing care of human beings.
(18) Educational institutions. From the rental chargedby any educational institution for living quarters, or sleeping or housekeepingaccommodations or other rooms or accommodations to any student or teachernecessitated by attendance at an educational institution. "Educationalinstitution" as used in this section means an institution of learning notoperated for profit which is empowered to confer diplomas, educational,literary, or academic degrees, which has a regular faculty, curriculum, andorganized body of pupils or students in attendance throughout the usual schoolyear, which keeps and furnishes to students and others records required andaccepted for entrance to schools of secondary, collegiate, or graduate rank, nopart of the net earnings of which inures to the benefit of any individual.
(i) From the sale of: (A) special adaptations, (B) thecomponent parts of the special adaptations, or (C) a specially adapted motorvehicle; provided, that the owner furnishes to the tax administrator anaffidavit of a licensed physician to the effect that the specially adaptedmotor vehicle is necessary to transport a family member with a disability orwhere the vehicle has been specially adapted to meet the specific needs of theperson with a disability. This exemption applies to not more than one motorvehicle owned and registered for personal, noncommercial use.
(ii) For the purpose of this subsection the term "specialadaptations" includes, but is not limited to: wheelchair lifts; wheelchaircarriers; wheelchair ramps; wheelchair securements; hand controls; steeringdevices; extensions, relocations, and crossovers of operator controls;power-assisted controls; raised tops or dropped floors; raised entry doors; oralternative signaling devices to auditory signals.
(iii) From the sale of: (a) special adaptations, (b) thecomponent parts of the special adaptations, for a "wheelchair accessibletaxicab" as defined in § 39-14-1 and/or a "wheelchair accessible publicmotor 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 theamount of use tax that would otherwise be due on the motor vehicle, exclusiveof any adaptations. The use tax credit is equal to the cost of the specialadaptations, including installation.
(20) Heating fuels. From the sale and from thestorage, use, or other consumption in this state of every type of fuel used inthe heating of homes and residential premises.
(21) Electricity and gas. From the sale and from thestorage, use, or other consumption in this state of electricity and gasfurnished for domestic use by occupants of residential premises.
(i) From the sale and from the storage, use, or otherconsumption in this state of tools, dies, and molds, and machinery andequipment (including replacement parts), and related items to the extent usedin an industrial plant in connection with the actual manufacture, conversion,or processing of tangible personal property, or to the extent used inconnection with the actual manufacture, conversion or processing of computersoftware as that term is utilized in industry numbers 7371, 7372, and 7373 inthe standard industrial classification manual prepared by the technicalcommittee on industrial classification, office of statistical standards,executive office of the president, United States bureau of the budget, asrevised from time to time, to be sold, or that machinery and equipment used inthe furnishing of power to an industrial manufacturing plant. For the purposesof this subdivision, "industrial plant" means a factory at a fixed locationprimarily engaged in the manufacture, conversion, or processing of tangiblepersonal property to be sold in the regular course of business;
(ii) Machinery and equipment and related items are not deemedto be used in connection with the actual manufacture, conversion, or processingof tangible personal property, or in connection with the actual manufacture,conversion or processing of computer software as that term is utilized inindustry numbers 7371, 7372, and 7373 in the standard industrial classificationmanual prepared by the technical committee on industrial classification, officeof statistical standards, executive office of the president, United Statesbureau of the budget, as revised from time to time, to be sold to the extentthe property is used in administration or distribution operations;
(iii) Machinery and equipment and related items used inconnection with the actual manufacture, conversion, or processing of anycomputer software or any tangible personal property which is not to be sold andwhich would be exempt under subdivision (7) or this subdivision if purchasedfrom a vendor or machinery and equipment and related items used during anymanufacturing, converting or processing function is exempt under thissubdivision even if that operation, function, or purpose is not an integral oressential part of a continuous production flow or manufacturing process;
(iv) Where a portion of a group of portable or mobilemachinery is used in connection with the actual manufacture, conversion, orprocessing of computer software or tangible personal property to be sold, aspreviously defined, that portion, if otherwise qualifying, is exempt under thissubdivision even though the machinery in that group is used interchangeably andnot otherwise identifiable as to use.
(23) Trade-in value of motor vehicles. From the saleand from the storage, use, or other consumption in this state of so much of thepurchase price paid for a new or used automobile as is allocated for a trade-inallowance on the automobile of the buyer given in trade to the seller or of theproceeds applicable only to the motor vehicle as are received from an insuranceclaim as a result of a stolen or damaged motor vehicle, or of the proceedsapplicable only to the automobile as are received from the manufacturer ofautomobiles for the repurchase of the automobile whether the repurchase wasvoluntary or not towards the purchase of a new or used automobile by the buyer;provided, that the proceeds from an insurance claim or repurchase is in lieu ofthe benefit prescribed in § 44-18-21 for the total loss or destruction ofthe automobile; and provided, further, that the tax has not been reimbursed aspart of the insurance claim or repurchase. For the purpose of this subdivision,the word "automobile" means a private passenger automobile not used for hireand does not refer to any other type of motor vehicle.
(i) From the sale and from the storage, use, or otherconsumption in this state of precious metal bullion, substantially equivalentto a transaction in securities or commodities.
(ii) For purposes of this subdivision, "precious metalbullion" means any elementary precious metal which has been put through aprocess of smelting or refining, including, but not limited to, gold, silver,platinum, rhodium, and chromium, and which is in a state or condition that itsvalue depends upon its content and not upon its form.
(iii) The term does not include fabricated precious metalwhich has been processed or manufactured for some one or more specific andcustomary industrial, professional, or artistic uses.
(25) Commercial vessels. From sales made to acommercial 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 propertypurchased for the use of the vessels including provisions, supplies, andmaterial for the maintenance and/or repair of the vessels.
(26) Commercial fishing vessels. From the sale andfrom the storage, use, or other consumption in this state of vessels and otherwater craft which are in excess of five (5) net tons and which are usedexclusively for "commercial fishing", as defined in this subdivision, and fromthe repair, alteration, or conversion of those vessels and other watercraft,and from the sale of property purchased for the use of those vessels and otherwatercraft including provisions, supplies, and material for the maintenanceand/or repair of the vessels and other watercraft and the boats nets, cables,tackle, and other fishing equipment appurtenant to or used in connection withthe commercial fishing of the vessels and other watercraft. "Commercialfishing" means the taking or the attempting to take any fish, shellfish,crustacea, or bait species with the intent of disposing of them for profit orby sale, barter, trade, or in commercial channels. The term does not includesubsistence fishing, i.e., the taking for personal use and not for sale orbarter; or sport fishing; but shall include vessels and other watercraft with aRhode Island party and charter boat license issued by the department ofenvironmental management pursuant to § 20-2-27.1 which meet the followingcriteria: (i) the operator must have a current U.S.C.G. license to carrypassengers for hire; (ii) U.S.C.G. vessel documentation in the coast widefishery trade; (iii) U.S.C.G. vessel documentation as to proof of Rhode Islandhome port status or a Rhode Island boat registration to prove Rhode Island homeport status; (iv) the vessel must be used as a commercial passenger carryingfishing vessel to carry passengers for fishing. The vessel must be able todemonstrate that at least fifty percent (50%) of its annual gross incomederives from charters or provides documentation of a minimum of one hundred(100) charter trips annually; (v) the vessel must have a valid Rhode Islandparty and charter boat license. The tax administrator shall implement theprovisions of this subdivision by promulgating rules and regulations relatingthereto.
(27) Clothing and footwear. From the sales of articlesof clothing, including footwear, intended to be worn or carried on or about thehuman body. For the purposes of this section, "clothing or footwear" does notinclude clothing accessories or equipment or special clothing or footwearprimarily designed for athletic activity or protective use as these terms aredefined in section 44-18-7.1(f).
(28) Water for residential use. From the sale and fromthe storage, use, or other consumption in this state of water furnished fordomestic 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 saleand from the storage, use, or other consumption in the state of any canonizedscriptures of any tax-exempt nonprofit religious organization including, butnot limited to, the Old Testament and the New Testament versions.
(i) From the sale of a boat or vessel to a bona fidenonresident of this state who does not register the boat or vessel in thisstate, or document the boat or vessel with the United States government at ahome port within the state, whether the sale or delivery of the boat or vesselis made in this state or elsewhere; provided, that the nonresident transportsthe boat within thirty (30) days after delivery by the seller outside the statefor use thereafter solely outside the state.
(ii) The tax administrator, in addition to the provisions of§§ 44-19-17 and 44-19-28, may require the seller of the boat orvessel to keep records of the sales to bona fide nonresidents as the taxadministrator deems reasonably necessary to substantiate the exemption providedin this subdivision, including the affidavit of the seller that the buyerrepresented himself or herself to be a bona fide nonresident of this state andof 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 thantwenty dollars ($20.00) each by nonprofit Rhode Island eleemosynaryorganizations, for the purposes of youth activities which the organization isformed to sponsor and support; and by accredited elementary and secondaryschools for the purposes of the schools or of organized activities of theenrolled students.
(32) Farm equipment. From the sale and from thestorage or use of machinery and equipment used directly for commercial farmingand agricultural production; including, but not limited to, tractors, ploughs,harrows, spreaders, seeders, milking machines, silage conveyors, balers, bulkmilk storage tanks, trucks with farm plates, mowers, combines, irrigationequipment, greenhouses and greenhouse coverings, graders and packagingmachines, tools and supplies and other farming equipment, including replacementparts, appurtenant to or used in connection with commercial farming and toolsand supplies used in the repair and maintenance of farming equipment."Commercial farming" means the keeping or boarding of five (5) or more horsesor the production within this state of agricultural products, including, butnot limited to, field or orchard crops, livestock, dairy, and poultry, or theirproducts, where the keeping, boarding, or production provides at least twothousand five hundred dollars ($2,500) in annual gross sales to the operator,whether an individual, a group, a partnership, or a corporation for exemptionsissued 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 annualgross sales from commercial farming of at least twenty-five hundred dollars($2,500) and shall be valid for purchases subject to the exemption provided inthis subdivision except for motor vehicles with an excise tax value of fivethousand dollars ($5,000) or greater; Level II shall be based on proof ofannual gross sales from commercial farming of at least ten thousand dollars($10,000) or greater and shall be valid for purchases subject to the exemptionprovided in this subdivision including motor vehicles with an excise tax valueof five thousand dollars ($5,000) or greater. For the initial issuance of theexemptions, proof of the requisite amount of annual gross sales from commercialfarming shall be required for the prior year; for any renewal of an exemptiongranted in accordance with this subdivision at either Level I or Level II,proof of gross annual sales from commercial farming at the requisite amountshall be required for each of the prior two (2) years. Certificates ofexemption issued or renewed after July 1, 2002, shall clearly indicate thelevel 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, butshall not apply to motor vehicles acquired after July 1, 2002, unless thevehicle is a farm vehicle as defined pursuant to § 31-1-8 and is eligiblefor registration displaying farm plates as provided for in § 31-3-31.
(33) Compressed air. From the sale and from thestorage, 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 orPOW-MIA flags.
(35) Motor vehicle and adaptive equipment to certainveterans. From the sale of a motor vehicle and adaptive equipment to andfor the use of a veteran with a service-connected loss of or the loss of use ofa leg, foot, hand, or arm, or any veteran who is a double amputee, whetherservice connected or not. The motor vehicle must be purchased by and especiallyequipped for use by the qualifying veteran. Certificate of exemption or refundsof taxes paid is granted under rules or regulations that the tax administratormay prescribe.
(36) Textbooks. From the sale and from the storage,use, or other consumption in this state of textbooks by an "educationalinstitution" as defined in subdivision (18) of this section and as well as anyeducational institution within the purview of § 16-63-9(4) and usedtextbooks by any purveyor.
(37) Tangible personal property and supplies used inon-site hazardous waste recycling, reuse, or treatment. From the sale,storage, use, or other consumption in this state of tangible personal propertyor supplies used or consumed in the operation of equipment, the exclusivefunction of which is the recycling, reuse, or recovery of materials (other thanprecious metals, as defined in subdivision (24)(ii) of this section) from thetreatment of "hazardous wastes", as defined in § 23-19.1-4, where the"hazardous wastes" are generated in Rhode Island solely by the same taxpayerand where the personal property is located at, in, or adjacent to a generatingfacility of the taxpayer in Rhode Island. The taxpayer shall procure an orderfrom the director of the department of environmental management certifying thatthe equipment and/or supplies as used, or consumed, qualify for the exemptionunder this subdivision. If any information relating to secret processes ormethods of manufacture, production, or treatment is disclosed to the departmentof 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 orpublicly disclosed unless disclosure is required under chapter 21 of title 28or chapter 24.4 of title 23.
(38) Promotional and product literature of boatmanufacturers. From the sale and from the storage, use, or otherconsumption of promotional and product literature of boat manufacturers shippedto points outside of Rhode Island which either: (i) accompany the product whichis sold, (ii) are shipped in bulk to out of state dealers for use in the saleof the product, or (iii) are mailed to customers at no charge.
(39) Food items paid for by food stamps. From the saleand from the storage, use, or other consumption in this state of eligible fooditems 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, 7U.S.C. § 2011 et seq.
(40) Transportation charges. From the sale or hiringof motor carriers as defined in § 39-12-2(l) to haul goods, when thecontract or hiring cost is charged by a motor freight tariff filed with theRhode Island public utilities commission on the number of miles driven or bythe number of hours spent on the job.
(41) Trade-in value of boats. From the sale and fromthe storage, use, or other consumption in this state of so much of the purchaseprice paid for a new or used boat as is allocated for a trade-in allowance onthe boat of the buyer given in trade to the seller or of the proceedsapplicable only to the boat as are received from an insurance claim as a resultof a stolen or damaged boat, towards the purchase of a new or used boat by thebuyer.
(42) Equipment used for research and development. Fromthe sale and from the storage, use, or other consumption of equipment to theextent used for research and development purposes by a qualifying firm. For thepurposes of this subdivision, "qualifying firm" means a business for which theuse of research and development equipment is an integral part of its operation,and "equipment" means scientific equipment, computers, software, and relateditems.
(43) Coins. From the sale and from the otherconsumption 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, layinghouses, 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 anyother structures used in connection with commercial farming.
(45) Telecommunications carrier access service.Carrier access service or telecommunications service when purchased by atelecommunications company from another telecommunications company tofacilitate the provision of telecommunications service.
(46) Boats or vessels brought into the state exclusivelyfor winter storage, maintenance, repair or sale. Notwithstanding theprovisions of §§ 44-18-10, 44-18-11, 44-18-20, the tax imposed by§ 44-18-20 is not applicable for the period commencing on the first day ofOctober in any year to and including the 30th day of April next succeeding withrespect to the use of any boat or vessel within this state exclusively forpurposes of: (i) delivery of the vessel to a facility in this state forstorage, including dry storage and storage in water by means of apparatuspreventing ice damage to the hull, maintenance, or repair; (ii) the actualprocess 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 fromthe storage, use, or other consumption in this state of tangible personalproperty used to display any jewelry product; provided, that title to thejewelry display product is transferred by the jewelry manufacturer or sellerand that the jewelry display product is shipped out of state for use solelyoutside the state and is not returned to the jewelry manufacturer or seller.
(48) Boats or vessels generally. Notwithstanding theprovisions of this chapter, the tax imposed by §§ 44-18-20 and44-18-18 shall not apply with respect to the sale and to the storage, use, orother consumption in this state of any new or used boat. The exemption providedfor in this subdivision does not apply after October 1, 1993, unless prior toOctober 1, 1993, the federal ten percent (10%) surcharge on luxury boats isrepealed.
(49) Banks and Regulated investment companies interstatetoll-free calls. Notwithstanding the provisions of this chapter, the taximposed by this chapter does not apply to the furnishing of interstate andinternational, toll-free terminating telecommunication service that is useddirectly and exclusively by or for the benefit of an eligible company asdefined in this subdivision; provided, that an eligible company employs onaverage during the calendar year no less than five hundred (500) "full-timeequivalent employees", as that term is defined in § 42-64.5-2. Forpurposes of this section, an "eligible company" means a "regulated investmentcompany" as that term is defined in the Internal Revenue Code of 1986, 26U.S.C. § 1 et seq., or a corporation to the extent the service isprovided, directly or indirectly, to or on behalf of a regulated investmentcompany, an employee benefit plan, a retirement plan or a pension plan or astate chartered bank.
(50) Mobile and manufactured homes generally. From thesale and from the storage, use, or other consumption in this state of mobileand/or manufactured homes as defined and subject to taxation pursuant to theprovisions of chapter 44 of title 31.
(i) From the sale and from the storage, use or otherconsumption in this state of lumber, hardware, and other building materialsused in the reconstruction of a manufacturing business facility which suffers adisaster, as defined in this subdivision, in this state. "Disaster" means anyoccurrence, natural or otherwise, which results in the destruction of sixtypercent (60%) or more of an operating manufacturing business facility withinthis state. "Disaster" does not include any damage resulting from the willfulact of the owner of the manufacturing business facility.
(ii) Manufacturing business facility includes, but is notlimited to, the structures housing the production and administrative facilities.
(iii) In the event a manufacturer has more than onemanufacturing site in this state, the sixty percent (60%) provision applies tothe damages suffered at that one site.
(iv) To the extent that the costs of the reconstructionmaterials are reimbursed by insurance, this exemption does not apply.
(52) Tangible personal property and supplies used in theprocessing or preparation of floral products and floral arrangements. Fromthe sale, storage, use, or other consumption in this state of tangible personalproperty or supplies purchased by florists, garden centers, or other likeproducers or vendors of flowers, plants, floral products, and natural andartificial floral arrangements which are ultimately sold with flowers, plants,floral products, and natural and artificial floral arrangements or areotherwise used in the decoration, fabrication, creation, processing, orpreparation of flowers, plants, floral products, or natural and artificialfloral arrangements, including descriptive labels, stickers, and cards affixedto the flower, plant, floral product or arrangement, artificial flowers, spraymaterials, floral paint and tint, plant shine, flower food, insecticide andfertilizers.
(53) Horse food products. From the sale and from thestorage, use, or other consumption in this state of horse food productspurchased by a person engaged in the business of the boarding of horses.
(i) From the sale, subsequent to June 30, 2003, of anon-motorized recreational vehicle to a bona fide nonresident of this state whodoes not register the non-motorized recreational vehicle in this state, whetherthe sale or delivery of the non-motorized recreational vehicle is made in thisstate or at the place of residence of the nonresident; provided, that anon-motorized recreational vehicle sold to a bona fide nonresident whose stateof residence does not allow a like exemption to its nonresidents is not exemptfrom the tax imposed under § 44-18-20; provided, further, that in thatevent the bona fide nonresident pays a tax to Rhode Island on the sale at arate equal to the rate that would be imposed in his or her state of residencenot to exceed the rate that would have been imposed under § 44-18-20.Notwithstanding any other provisions of law, a licensed non-motorizedrecreational vehicle dealer shall add and collect the tax required under thissubdivision and remit the tax to the tax administrator under the provisions ofchapters 18 and 19 of this title. Provided, that when a Rhode Island licensednon-motorized recreational vehicle dealer is required to add and collect thesales and use tax on the sale of a non-motorized recreational vehicle to a bonafide nonresident as provided in this section, the dealer in computing the taxtakes into consideration the law of the state of the nonresident as it relatesto 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-motorizedrecreational vehicle dealer to keep records of sales to bona fide nonresidentsas the tax administrator deems reasonably necessary to substantiate theexemption provided in this subdivision, including the affidavit of a licensednon-motorized recreational vehicle dealer that the purchaser of thenon-motorized recreational vehicle was the holder of, and had in his or herpossession a valid out-of-state non-motorized recreational vehicle registrationor a valid out-of-state driver's license.
(iii) Any nonresident who registers a non-motorizedrecreational vehicle in this state within ninety (90) days of the date of itssale to him or her is deemed to have purchased the non-motorized recreationalvehicle for use, storage, or other consumption in this state, and is subjectto, and liable for the use tax imposed under the provisions of § 44-18-20.
(iv) "Non-motorized recreational vehicle" means any portabledwelling designed and constructed to be used as a temporary dwelling fortravel, camping, recreational, and vacation use which is eligible to beregistered for highway use, including, but not limited to, "pick-up coaches" or"pick-up campers," "travel trailers," and "tent trailers" as those terms aredefined in chapter 1 of title 31.
(55) Sprinkler and fire alarm systems in existingbuildings. From the sale in this state of sprinkler and fire alarm systems,emergency lighting and alarm systems, and from the sale of the materialsnecessary and attendant to the installation of those systems, that are requiredin buildings and occupancies existing therein in July 2003, in order to complywith any additional requirements for such buildings arising directly from theenactment of the Comprehensive Fire Safety Act of 2003, and that are notrequired by any other provision of law or ordinance or regulation adoptedpursuant to that Act. The exemption provided in this subdivision shall expireon December 31, 2008.
(56) Aircraft. Notwithstanding the provisions of thischapter, the tax imposed by §§ 44-18-18 and 44-18-20 shall not applywith respect to the sale and to the storage, use, or other consumption in thisstate of any new or used aircraft or aircraft parts.
(57) Renewable energy products. Notwithstanding anyother provisions of Rhode Island general laws the following products shall alsobe exempt from sales tax: solar photovoltaic modules or panels, or any moduleor 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 turbinemanufacturer; DC to AC inverters that interconnect with utility power lines;manufactured mounting racks and ballast pans for solar collector, module orpanel installation. Not to include materials that could be fabricated into suchracks; monitoring and control equipment, if specified or supplied by amanufacturer of solar thermal, solar photovoltaic, geothermal, or wind energysystems or if required by law or regulation for such systems but not to includepumps, fans or plumbing or electrical fixtures unless shipped from themanufacturer affixed to, or an integral part of, another item specified on thislist; and solar storage tanks that are part of a solar domestic hot watersystem or a solar space heating system. If the tank comes with an external heatexchanger it shall also be tax exempt, but a standard hot water tank is notexempt from state sales tax.
(58) Returned property. The amount charged forproperty returned by customers upon rescission of the contract of sale when theentire amount exclusive of handling charges paid for the property is refundedin either cash or credit, and where the property is returned within one hundredtwenty (120) days from the date of delivery.
(59) Dietary Supplements. From the sale and from thestorage, 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 orother consumption of human blood.
(61) Prewritten computer software deliveredelectronically. From the sale and from the storage, use or otherconsumption of prewritten computer software delivered electronically or by loadand leave.
(62) Agricultural products for human consumption. Fromthe sale and from the storage, use or other consumption of livestock andpoultry of the kinds of products of which ordinarily constitute food for humanconsumption and of livestock of the kind the products of which ordinarilyconstitute fibers for human use.