Posts Tagged ‘Ohio sales tax’

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

Monday, 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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What’s That ‘New’ Charge On Your Amazon Bill?

Tuesday, June 2nd, 2015
Amazon Looks To Drone Delivery - Rea & Associates - Ohio CPA Firm

Amazon appears to be unaffected by the possible repercussions of adding sales tax to customer’s invoices as its focus seems to have shifted from a superior price point strategy to high efficiency and extra speedy service. According to reports, the online giant continues to move forward with initiatives that promise even speedier delivery – further cutting the time it takes for a product to hit the customer’s front porch after the order was placed.

If you aren’t already aware, Amazon is in the process of bringing three of its data centers and a distribution center to Ohio. And yes, the company’s decision to open up shop in the Buckeye State is expected to boost the state-wide economy and add about 1,000 jobs to the ranks. But what is generating the most excitement these days (at least throughout Ohio’s retail industry) is the company’s new responsibility to collect sales tax from our state’s shoppers.

Read: If You Buy Online You Might Owe Use Tax

Traditional retailers anticipate this move will effectively level the playing field, helping encourage the growth of the state’s locally-owned businesses. Amazon, however, appears to be unaffected by the possible repercussions of adding sales tax to customer’s invoices as its focus seems to have shifted from a superior price point strategy to high efficiency and extra speedy service. [SPOILER ALERT: Drone delivery appears to be imminent!] According to reports, the online giant continues to move forward with initiatives that promise even speedier delivery – further cutting the time it takes for a product to hit the customer’s front porch after the order was placed. The company is also exploring ways to keep the cost associated with such speed minimal – information from the US Patent and Trademark Office reveals the company’s desire to “dominate the skies.”

Ohio-Based Amazon Shoppers Begin Paying Sales Tax

Paying taxes on your purchased items is not a new phenomenon. In fact, you’re probably not too shocked to see the roughly 7 percent (based on your county) charge permanently affixed to the bottom portion your receipts whenever your purchase a variety of products from a local brick-and-mortar shop. Until June 1 though, Ohio residents didn’t see this charge when purchasing products from Amazon, simply because the online retailer wasn’t required to make those living in the Buckeye State pay these taxes.

In Ohio, only vendors with a physical presence in the state, such as a storefront, warehouse, factory or call center, must charge sales tax to in-state customers. Otherwise, it’s up to individual taxpayers to report and pay the taxes when filing their annual tax returns, which is a relatively uncommon practice.

“The Ohio Department of Taxation has estimated that Ohio will lose out on about $400 million in unpaid sales or use tax on unpaid sales or use tax on so-called remote sales this year,” reported The Columbus Dispatch. “More than 5 million Ohioans filed tax returns for 2012. Of those, a little more than 50,000 paid a total of $3 million in taxes due on Internet or mail-order purchases. Retail groups and analysts welcomed the news that Amazon will start collecting taxes.”

Ohio Taxpayers Still On The Hook For Other Purchases

It may seem like it’s too soon to start thinking about your 2015 tax return, it’s actually a great time to start collecting information you will need to complete your paperwork early next year. For example, while you won’t need to collect your Amazon receipts anymore, you may have to keep tabs of your Etsy habit (for example) to help make calculating your 2015 use tax as simple as possible.

Email Rea & Associates to learn more about use tax.

By Joe Popp, JD, LLM (Dublin office)

 

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How Might You Be Impacted By Ohio’s New Budget?

Wednesday, July 3rd, 2013
On Sunday, June 30, 2013, while some people were celebrating birthdays, or anniversaries, or other significant milestones in their lives, Ohio Governor John Kasich was signing Ohio’s new biannual budget bill into law.  (more…)
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A Use Tax Audit Could Cost You Big

Friday, July 27th, 2012

The State of Ohio is looking for additional tax dollars, and they’re not going to give you the benefit of the doubt if your business is audited for use tax. But you may be able to avoid a use tax audit if you qualify for a one-time opportunity to enter into the State of Ohio’s amnesty program. (more…)

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Could Ohio Use Tax Amnesty expose vendors who aren’t charging sales tax?

Friday, April 27th, 2012

Over the last year, you’ve heard a lot about Ohio’s Use Tax Education program, which has since become the Use Tax Amnesty program.  Use tax is tax that is owed on goods and purchases for which sales tax should have been charged, but wasn’t.  It’s a great program, assisting Ohio taxpayers in getting current with their Ohio use tax liabilities and waiving penalties and interest.  Ohio’s got another tax amnesty program, General Tax Amnesty (which includes sales tax) starting this week – which makes this a good time to mention a darker side to the Use Tax Amnesty program and how it could impact vendors. (more…)

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Sooner Rather Than Later? Why You Should Do Ohio Use Tax Amnesty Now

Monday, December 19th, 2011

For the past several months, we’ve told you about Ohio’s use tax amnesty program. You may have read that the program will continue through April 1, 2013. So why should you participate in the amnesty program now rather than later? Here are four reasons. (more…)

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Ohio’s Use Tax Amnesty Program

Wednesday, July 6th, 2011
Your Ohio business has a one-time opportunity to lessen your use tax liability due to a use tax amnesty measure recently passed as part of Ohio’s budget bill. It’s one of the most taxpayer-friendly laws the State of Ohio has ever enacted. (more…)
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Ohio Use Tax Audits Find Big Liabilities from Small Items

Friday, June 10th, 2011

Note: Ohio has established a tax amnesty program since this post was originally created.

Keeping meticulous records has never been more important than it is today. With today’s governmental agencies looking for additional dollars, they’re not going to give you the benefit of the doubt should your business be audited for use tax. Consider these two recent cases: (more…)

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