Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 70 - Sales and Use Tax
Part 19 - Manufacturing, Property and Public Utilities Service Used In (280-RICR-20-70-19)
Section 280-RICR-20-70-19.6 - Property used in Production

Universal Citation: 280 RI Code of Rules 20 70 19.6

Current through September 18, 2024

A. Under R.I. Gen. Laws § 44-18-30(7) the sale, (including lease or rental) and the storage, use, or other consumption in this state of the following items of tangible personal property used in the production process, as defined above, are exempt:

1. Tangible personal property which will become an ingredient, component, or integral part of the property produced to be sold.

2. Tangible personal property consumed in production of property to be resold.

3. Coal, fuel oil, electricity, natural gas, artificial gas, steam, refrigeration, and water consumed in the production of property to be resold.

4. Coal, fuel oil, electricity, natural gas, artificial gas, steam, refrigeration, and water when used to generate power or to maintain a fixed temperature necessary in the production of tangible personal property for resale.

5. Work clothes, safety goggles, leather or rubber aprons or similar items of work clothes.

6. Lubricating oils and greases used on machines that manufacture products for resale.

B. "Consumed" means destroyed, used up, or worn out to the degree or extent that such property cannot be repaired, reconditioned, or rendered fit for further manufacturing use.

C. "Consumed" shall also mean and/or include mere obsolescence.

D. The following tangible personal property, machinery and equipment, is taxable and not included in the scope of this exemption:

1. Cleaning, janitor, and first aid supplies.

2. Boiler compounds and water additives used in the maintenance of machinery or equipment.

3. Office equipment and supplies.

4. Equipment and supplies used in selling and distribution.

5. Equipment and supplies used in transportation activities.

Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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