(A) The following shall not be subject to taxation under this subchapter:
(1) Any business, calling, profession or occupation where the general law of the state or general law of the United States preclude the levying of a tax;
(2) Sales in interstate or foreign commerce when prohibited from being so taxed by the Constitution or general laws of the United States or by the Constitution of the state;
(3) Professional services, instruction and other services not connected with the making of retail sales;
(4) Sales of machinery or equipment to be used directly in manufacturing, processing, fabricating, job printing, refining or metallurgical operations, including leaching, milling, precipitating, smelting and refining;
(5) Sales of machinery or equipment to be used directly in the process of extracting ore or minerals from the earth for commercial purposes, including equipment required to prepare the materials for extraction and for the handling, loading or transportation of the extracted material to the surface;
(6) Sales to telephone or telegraph companies of central office switching equipment, switchboards, private branch exchange equipment, microwave radio and carrier equipment, and coaxial cable;
(7) Sales of machinery, equipment or transmission lines to be used directly in the production or transmission of electrical power, but not include distribution, and in addition, transformers and control equipment used at transmission substation sites;
(8) Sales of pipes or valves four inches in diameter or larger to be used for transporting oil, natural gas, artificial gas, water or coal slurry;
(9) Sales of aircraft, navigational and communication instruments and other accessories and related equipment to be used in conjunction with or becoming part of aircraft to be used in transportation of persons, property or U.S. mail in intrastate, interstate or foreign air transportation for hire by airlines holding a federal or state certificate of public convenience and necessity or holding a foreign air carrier permit;
(10) Sales of railroad rolling stock, rails, ties and signal control equipment to be used directly in the transportation of persons or property in intrastate or interstate transportation for hire;
(11) Sales of machinery or equipment to be used directly in the drilling of oil or gas from the earth for commercial purposes; and
(12) Contracting, retail sales and any other taxable activity for the town.
(B) This subchapter shall not apply to sales of gasoline.
(1974 Code, § 8-2-4)