Ohio Sales Tax Holiday August 5-7th 2016

The State of Ohio just announced a sales tax holiday on August 5, 6 and 7th 2016.  The holiday is geared to the start of school in the fall and will exempt from sales tax:

  • Clothing priced at $75 or less, this is a per item limit not an aggregate purchase limit. In other words, you can purchase multiple items costing less than $75 in a single purchase and the entire purchase will be exempt. See the website http://www.tax.ohio.gov/sales_and_use/salestaxholiday/holidayfaq.aspx for a detailed list of items included and excluded from the clothing definition.
  • School supplies priced at $20 or less. The website specifies what items are exempt.
  • School instructional materials priced at $20 or less. The rule includes only reference books, reference maps and globes, textbooks, and workbooks.

The rule does not cover items used in a trade or business. But online purchases are covered.

Merchants should discuss the implications of a sales tax holiday with their software providers now. These are limited amounts and only a few items are covered so additional programing may be required for your systems to properly collect and track these exempt sales.

photo credit: Heart of USA flag -2514 via photopin (license)


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