10-Day Ohio Sales Tax Holiday | Ohio House Bill 33 | OH IN KY

10-Day Extended Ohio Sales Tax Holiday Benefits Purchasers and Vendors

Published on by Cheryl Ganim in State Local Tax, Tax Services

10-Day Extended Ohio Sales Tax Holiday Benefits Purchasers and Vendors

Ohio House Bill 33 changed the sales tax holiday to allow tax-free purchases of tangible personal property costing under $500 per item (with certain exceptions). Ohio’s 2024 3-day sales tax holiday is expanded to 10 days from midnight, Tuesday, July 30, 2024, until 11:59 pm, Thursday, August 8, 2024. During this time eligible purchases have been expanded to include certain goods that cost $500 or less per item, may be purchased tax-free online and in-store, and are not limited to school supplies and clothing.

It’s not optional

The sales tax holiday is set by law and vendors must comply. Vendors will need to apply the sales tax holiday exemption to qualifying items during the ten-day sales tax holiday and be prepared to program their invoice software to exempt qualifying tangible personal property that’s normally taxable in Ohio.

Businesses typically pay use tax for items they use in the business (not inventory), but will not be taxed for their purchases of qualifying tangible personal property under $500, and will not need to accrue use tax on those purchases made during the sales tax holiday.

What’s included – and what’s not

  • The sales tax holiday excludes tangible personal property over $500, watercraft or outboard motors (required to be titled pursuant to Chapter 1548. of the Revised Code) motor vehicles, alcoholic beverages, tobacco, vapor products (as defined in R.C. 5743.01.), or an item that contains marijuana (As defined in R.C. 3796.01.).
  • Services such as repairs, construction contracts, and other services enumerated in Ohio Revised Code 5739.01(B)(3) are excluded.
  • Multiple items costing $500 or less each may be purchased tax-exempt in a single transaction, but retailers may not split the price of items that are normally sold together or as a unit to fall under the $500 threshold.
  • If taxable and exempt items are sold together for a single price, the entire price is taxable.
  • If taxable and exempt items are separately stated on the invoice, then the sales tax exemption can be applied to the exempt items.
  • Shipping and handling will not be taxed for exempt sales.
  • The $500 exemption does not apply to the first $500 of an item that costs over $500.
  • ‘Buy one, get one free’ or ‘buy one for a reduced price’ cannot be averaged to qualify both items for the exemption.
  • If a discount (including coupons or loyalty points) reduces the price to $500 or less, the item will qualify for the exemption.
  • Third-party reimbursements to retailers (manufacturer’s coupon) do not reduce the sales price for purposes of determining whether the item is eligible for the exemption.

Get more information

For more details, visit the Ohio Department of Taxation website’s Sales and Use Tax Holiday page.

Have questions about sales and use tax and how it may impact your business? You might be interested in the Top 10 Triggers for Sales Tax Nexus (#8 will amaze you) or in Common Sales Tax Pitfalls – and How to Avoid Them. – a short video featuring our best and brightest sales tax compliance pros. You can also contact us to set up a free consultation: as always, we’re here to help.


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