§ 44-5-3 - Ratable property of a city or town – Definitions.
SECTION 44-5-3
§ 44-5-3 Ratable property of a city ortown – Definitions. – (a) The ratable property of the city or town consists of the ratable realestate and the ratable tangible personal property (which do not includemanufacturer's manufacturing machinery and equipment of a manufacturer) and theratable tangible personal property of manufacturers consisting ofmanufacturer's manufacturing machinery and equipment of a manufacturer.
(b) For the purposes of this section and §§44-5-20, 44-5-22, 44-5-38, and § 9 of chapter 245, public laws of RhodeIsland, 1966, "manufacturing" includes the handling and storage ofmanufacturer's inventories as defined in § 44-3-3(20)(ii).
(2) "Manufacturer's machinery and equipment" or"manufacturing machinery and equipment" is defined as:
(i) Machinery and equipment which is used exclusively in theactual manufacture or conversion of materials or goods in the process ofmanufacture by a manufacturer as defined in § 44-3-3(20) and machinery,fixtures, and equipment used exclusively by a manufacturer for research anddevelopment or for quality assurance of its manufactured products; and
(ii) Machinery and equipment which is partially used in theactual manufacture or conversion of raw materials or goods in the process ofmanufacture by a manufacturer as defined in § 44-3-3(20) and machinery,fixtures, and equipment used by a manufacturer for research and development orfor quality assurance of its manufactured products, to the extent to which themachinery and equipment is used for the manufacturing processes, research, anddevelopment or quality assurance. In the instances where machinery andequipment is used in both manufacturing activities, the assessment on machineryand equipment is prorated by applying the percentage of usage of the equipmentfor manufacturing, research, and development and quality assurance activity tothe value of the machinery and equipment for purposes of taxation, and theportion of the value used for manufacturing, research, and development andquality assurance is exempt from taxation. The burden of demonstrating thispercentage usage of machinery and equipment for manufacturing and for researchand development and/or quality assurance of its manufactured products restswith the manufacturer.
(3) This definition of "manufacturing" or "manufacturer'smachinery and equipment" does not include:
(i) Motor vehicles required by law to be registered with thedivision of motor vehicles;
(ii) Store fixtures and other equipment situated in or upon aretail store or other similar selling place operated by a manufacturer, whetheror not the retail establishment store or other similar selling place is locatedin the same building in which the manufacturer operates his or hermanufacturing plant; and
(iii) Fixtures or other equipment situated in or uponpremises used to conduct a business which is unrelated to the manufacture offinished products for trade and their sale by the manufacturer of the products,whether or not the premises where the unrelated business is conducted is in thesame building in which the manufacturer has his or her manufacturing plant. Thelevy on tangible personal property of manufacturers consisting ofmanufacturer's manufacturing machinery and equipment of a manufacturer is atthe rate provided in § 44-5-38.