In our household the back-to-school season brings with it many emotions, excitement, stress, busyness, exhaustion, as well as shock of the costs of new clothes and school supplies. I’m happy to share that the state has stepped in to help with at least the last one and next weekend will mark the first-ever back-to-school sales tax holiday in Ohio.
Last year, Senate Bill 243 was signed into law which creates the sales tax holiday from midnight on August 7 until midnight on August 9. Ohio consumers will be exempt from the usual 6.75 percent state sales tax on all clothing and footwear up to $75 per item and school supplies up to $20 per item.
While each clothing item purchased at $75 or less will be exempt from sales tax, there are some exceptions. For example, an item listed as “buy one, get one free” and totaling $80 will not qualify for a per item price of $40, below the threshold. Sales tax will still be owed on these items because the offer is above the $75 per item limit. For more information about discounts, shopping online and eligible items visit: www.tax.ohio.gov/sales_and_use/salestaxholiday/holidayfaq.aspx.
Also, items purchased during the sales tax holiday that are used for trade or business are subject to a consumer’s use tax and businesses should claim these items on a use tax account or contact the Department of Taxation for a use tax form.
This sales tax holiday will benefit everyone. Working families will get some relief during this expensive time of year as they outfit their growing children with new clothes and supplies, teachers will be able to stretch their classroom dollars a little farther, and our local retailers will benefit from some additional sales.
Improving everyone’s economic prospects is our main job in Columbus. Better jobs, better education, lower cost of living through fewer taxes all add up to a better future for Ohioans. So as you get ready for another busy back-to-school season, know that we’re working to make sure your hard earned dollars are spent wisely and you can rest assured that this is a task from which we can’t “take a holiday.”