Section 280-RICR-20-70-19.5 - Manufacturing, Converting, Processing, Compounding, Assembling, Preparing, and ProducingA. For the purpose of this regulation, the business of manufacturing, converting, processing, compounding, assembling, preparing, or producing shall be divided into three parts as follows: 1. Administration, meaning all administrative work such as general office operations, accounting, purchasing, collection, sales promotion, clerical work in production such as preparation of work records, production records and time records, and machinery or equipment or supplies used in the transporting of raw materials to the industrial plant.2. Production, meaning all operations performed in the producing or processing room, shop or plant, including the production line starting with the handling and storage of raw materials in the industrial plant and continuing through the last step of production where the product is finished or completed and packaged for sale.3. Distribution, meaning all operations subsequent to production such as handling, storing, selling, displaying, loading and transporting the manufactured products.B. The sales or use tax applies to property and public utility services used in administration and distribution as defined above. The tax applies to property placed in the producing or processing room, shop, or plant if such property is used solely in administration or distribution work. C. Retailers such as restaurants, donut shops, fast food businesses, etc., are not manufacturers as that term is commonly understood. Therefore, the manufacturing exemptions under R.I. Gen. Laws §§ 44-18-30(7) and 44-18-30(22) do not apply to such retailers.280 R.I. Code R. § 280-RICR-20-70-19.5