Colored Pencils, Glue and … Rubber Pants? Oh My!

Lisa Beamer | August 3rd, 2015

Five Things You Didn’t Know About Ohio’s Tax Holiday

Ohio Sales Tax Holiday - Rea & Associates - Ohio CPA FirmRegardless of whether you are a parent with younger children, a student, a teacher, or maybe just someone who wants to stock up on a ridiculously large supply of colored pencils and glue, by the time you buy everything you need for that first day of school, you (and your bank account) are drained. OK – maybe it’s really not that bad, but by the time you purchase new clothes and shoes, a book bag or two and all the items that go in it, you will have spent a large sum of money.

Fear not fellow Ohioans! The Department of Taxation is offering relief.

This year, for the first time ever, the State of Ohio is giving those who shop for clothing (priced at $75 or less per item), school supplies (priced at $20 or less per item) and school instructional material (priced at $20 or less per item) a break from paying sales tax beginning 12:01 a.m. Friday, Aug. 7 and ending 11:59 p.m. Sunday, Aug. 9, 2015. And there is no limit on the quantity of items you can purchase.

“As the new school year approaches, additional expenses can put a strain on family budgets, said Ohio Tax Commissioner in a news release. “The sales tax holiday will give back-to-school shoppers a break from paying sales tax, and let Ohio families save some money.”

The one-time tax holiday, which was enacted as a result of Senate Bill 243, also applies to eligible items purchased online, by mail, telephone or email. But to qualify, the order must be placed, paid for and accepted by the retailer for immediate shipment during the hours the tax holiday is in effect. That being said, actual delivery can occur following the tax exemption period.

Read on to learn five interesting facts about the upcoming tax holiday.

Five Things You Didn’t Know About Ohio’s Tax Holiday

  1. Retailers cannot “opt out” of the 2015 Ohio Sales Tax Holiday event. The holiday is set by law, therefore all vendors must comply.
  2. Qualifying items placed on, or picked up from, layaway during the sales tax holiday ARE exempt from sales tax.
  3. During the sales tax holiday, all clothing that costs $75 or less is exempt from sales tax. So, obviously items such as shirts, pants, dresses, uniforms, shoes, coats, etc. are tax exempt; but items like receiving blankets, diapers, rubber pants and athletic supporters also made the cut.
  4. While you won’t have to pay sales tax on your aprons, belts and beach capes, wigs, belt buckles and wetsuits are another story. Make sure to check the official web page for more clarification.
  5. Teachers are also encouraged to take advantage of the holiday! In addition to traditional school supplies, the tax exemption is valid for reference books, maps, globes, textbooks and workbooks.

SOURCE: http://www.tax.ohio.gov/sales_and_use/salestaxholiday/holidayfaq.aspx

Click here to learn more about Ohio’s 2015 Sales Tax Holiday. Happy back-to-school shopping!

By Lisa Beamer, CPA (New Philadelphia office)

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