Friday, August 5th marks the beginning of a one-time sales tax holiday in Ohio, and you can save between 6.5% and 8% in state and county sales tax. The holiday begins on Friday, August 5, 2016 at midnight and concludes on Sunday, August 7, 2016 at 11:59pm. During the period, the following items are exempt from sales and use tax:
- An item of clothing prices at $75 or less (includes shoes, diapers, and baby receiving blankets);
- An item of school supplies priced at $20 or less; and
- An item of school instructional material priced at $20 or less.
Trade or business items are not exempt under the sales tax holiday. If the retailer doesn’t collect sales tax on an item you purchase to use in a trade or business, you should report the purchase on the Sales and Use Tax return or personal income tax return and pay use tax on the item.
There is not a limit on how many $20 items you can buy as long as each item costs $20 or less. If you spend around $100 on merchandise then you will save between $6.50 and $8 in sales tax, depending on which county you live in.
However, remember that some items are not included. For example, if you purchase a pair of gym shoes for more than $75 then they would still have sales tax. But if you purchase 3 boxes of pencils all under $20 then all 3 items would be exempt from sales tax.
If you have questions regarding this holiday, and the rules surrounding Ohio taxation, please contact us by calling 513.241.8313, or have a member of the Barnes Dennig team contact you here.