Bill > H5788

This bill amends the Rhode Island General Laws to prohibit the collection of sales tax on core charges and refundable deposits for batteries and motor vehicle equipment, parts, or components. Specifically, the bill requires that no sales tax be levied on recycling fees, deposits, or disposal fees for these items. It mandates that retailers hold any refundable deposits in trust for the state, in line with existing regulations. The Division of Taxation is tasked with creating rules to implement this change and must issue a written notice to all retailers of batteries and motor vehicle equipment, instructing them to post a conspicuous notice that sales tax will not be charged on these refundable deposits and core charges. Core charges typically refer to a fee added to the price of a new part (like a car battery) that is refunded when the customer returns the old part for recycling. The bill aims to reduce the financial burden on consumers by ensuring that these environmentally-friendly recycling-related fees are not subject to additional sales tax. The legislation will take effect immediately upon passage.

Budget and Finance

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