§ 44-18.1-17 Enactment of exemptions.– (a) For the purpose of this section and § 44-18.1-18, the followingdefinitions apply:
(1) Entity-Based Exemption. An exemption based on whopurchases the product or who sells the product. An exemption that is availableto all individuals shall not be considered an entity-based exemption.
(2) Product-Based Exemption. An exemption based on thedescription of the product and not based on who purchases the product or howthe purchaser intends to use the product.
(3) Use-Based Exemption. An exemption based on a specifieduse of the product by the purchaser.
(b) A member state shall enact entity-based, use-based andproduct-based exemptions in accordance with the provisions of this section andshall utilize common definitions in accordance with the provisions of thissection and shall utilize common definitions in accordance with the provisionsof § 44-18.1-28 and Library of Definitions in Appendix C of theStreamlined Sales and Use Tax Agreement.
(c) A member state may enact a product-based exemptionwithout restriction if Part II of the Library of Definitions does not have adefinition for such product.
(2) A member state may enact a product-based exemption for aproduct if Part II of the Library of Definitions has a definition for suchproduct and the member state utilizes in the exemption the product definitionin a manner consistent with Part II of the Library of Definitions and §44-18.1-28.
(3) A member state may enact a product-based exemptionexempting all items included within a definition in Part II of the Library ofDefinitions but shall not exempt specific items included within the productdefinition unless the product definition sets out an exclusion for such item.
(d) A member state may enact an entity-based or a use-basedexemption for a product without restriction if Part II of the Library ofDefinitions does not have a definition for such product.
(2) A member state may enact an entity-based or a use-basedexemption for a product if Part II of the Library of Definitions has adefinition for such product and the member state utilizes in the exemption theproduct definition in a manner consistent with Part II of the Library ofDefinitions and § 44-18.1-28 of this Agreement.
(3) A member state may enact an entity-based exemption for anitem if Part II of the Library of Definitions does not have a definition forsuch item but has a definition for a product that includes such item.
(4) A member state may not enact a use-based exemption for anitem which effectively constitutes a product-based exemption if Part II of theLibrary of Definitions has a definition for a product that includes such item.
(5) A member state may enact a use-based exemption for anitem if Part II of the Library of Definitions has a definition for a productthat includes such item, if not prohibited in Subsection (C)(4) of this sectionand if consistent with the definition in Part II of the Library of Definitions.
(e) For purposes of complying with the requirements in thissection, the inclusion of a product within the definition of tangible personalproperty is disregarded.
§ 44-18.1-17 Enactment of exemptions.– (a) For the purpose of this section and § 44-18.1-18, the followingdefinitions apply:
(1) Entity-Based Exemption. An exemption based on whopurchases the product or who sells the product. An exemption that is availableto all individuals shall not be considered an entity-based exemption.
(2) Product-Based Exemption. An exemption based on thedescription of the product and not based on who purchases the product or howthe purchaser intends to use the product.
(3) Use-Based Exemption. An exemption based on a specifieduse of the product by the purchaser.
(b) A member state shall enact entity-based, use-based andproduct-based exemptions in accordance with the provisions of this section andshall utilize common definitions in accordance with the provisions of thissection and shall utilize common definitions in accordance with the provisionsof § 44-18.1-28 and Library of Definitions in Appendix C of theStreamlined Sales and Use Tax Agreement.
(c) A member state may enact a product-based exemptionwithout restriction if Part II of the Library of Definitions does not have adefinition for such product.
(2) A member state may enact a product-based exemption for aproduct if Part II of the Library of Definitions has a definition for suchproduct and the member state utilizes in the exemption the product definitionin a manner consistent with Part II of the Library of Definitions and §44-18.1-28.
(3) A member state may enact a product-based exemptionexempting all items included within a definition in Part II of the Library ofDefinitions but shall not exempt specific items included within the productdefinition unless the product definition sets out an exclusion for such item.
(d) A member state may enact an entity-based or a use-basedexemption for a product without restriction if Part II of the Library ofDefinitions does not have a definition for such product.
(2) A member state may enact an entity-based or a use-basedexemption for a product if Part II of the Library of Definitions has adefinition for such product and the member state utilizes in the exemption theproduct definition in a manner consistent with Part II of the Library ofDefinitions and § 44-18.1-28 of this Agreement.
(3) A member state may enact an entity-based exemption for anitem if Part II of the Library of Definitions does not have a definition forsuch item but has a definition for a product that includes such item.
(4) A member state may not enact a use-based exemption for anitem which effectively constitutes a product-based exemption if Part II of theLibrary of Definitions has a definition for a product that includes such item.
(5) A member state may enact a use-based exemption for anitem if Part II of the Library of Definitions has a definition for a productthat includes such item, if not prohibited in Subsection (C)(4) of this sectionand if consistent with the definition in Part II of the Library of Definitions.
(e) For purposes of complying with the requirements in thissection, the inclusion of a product within the definition of tangible personalproperty is disregarded.
§ 44-18.1-17 Enactment of exemptions.– (a) For the purpose of this section and § 44-18.1-18, the followingdefinitions apply:
(1) Entity-Based Exemption. An exemption based on whopurchases the product or who sells the product. An exemption that is availableto all individuals shall not be considered an entity-based exemption.
(2) Product-Based Exemption. An exemption based on thedescription of the product and not based on who purchases the product or howthe purchaser intends to use the product.
(3) Use-Based Exemption. An exemption based on a specifieduse of the product by the purchaser.
(b) A member state shall enact entity-based, use-based andproduct-based exemptions in accordance with the provisions of this section andshall utilize common definitions in accordance with the provisions of thissection and shall utilize common definitions in accordance with the provisionsof § 44-18.1-28 and Library of Definitions in Appendix C of theStreamlined Sales and Use Tax Agreement.
(c) A member state may enact a product-based exemptionwithout restriction if Part II of the Library of Definitions does not have adefinition for such product.
(2) A member state may enact a product-based exemption for aproduct if Part II of the Library of Definitions has a definition for suchproduct and the member state utilizes in the exemption the product definitionin a manner consistent with Part II of the Library of Definitions and §44-18.1-28.
(3) A member state may enact a product-based exemptionexempting all items included within a definition in Part II of the Library ofDefinitions but shall not exempt specific items included within the productdefinition unless the product definition sets out an exclusion for such item.
(d) A member state may enact an entity-based or a use-basedexemption for a product without restriction if Part II of the Library ofDefinitions does not have a definition for such product.
(2) A member state may enact an entity-based or a use-basedexemption for a product if Part II of the Library of Definitions has adefinition for such product and the member state utilizes in the exemption theproduct definition in a manner consistent with Part II of the Library ofDefinitions and § 44-18.1-28 of this Agreement.
(3) A member state may enact an entity-based exemption for anitem if Part II of the Library of Definitions does not have a definition forsuch item but has a definition for a product that includes such item.
(4) A member state may not enact a use-based exemption for anitem which effectively constitutes a product-based exemption if Part II of theLibrary of Definitions has a definition for a product that includes such item.
(5) A member state may enact a use-based exemption for anitem if Part II of the Library of Definitions has a definition for a productthat includes such item, if not prohibited in Subsection (C)(4) of this sectionand if consistent with the definition in Part II of the Library of Definitions.
(e) For purposes of complying with the requirements in thissection, the inclusion of a product within the definition of tangible personalproperty is disregarded.
