AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION

SB 2840 amends Rhode Island's sales and use tax laws to exempt licensed child care centers from paying sales tax on their purchases. This change directly affects licensed child care providers by removing the tax liability they currently face when buying goods and services for their operations. The bill modifies existing tax exemption categories, specifically adding licensed child care centers to the list of entities that can purchase items tax-free, alongside schools and other educational institutions. The provision applies to tangible personal property used in the daily functioning of these child care facilities, aligning their tax treatment with that of other educational organizations already exempt from the tax.