Ohio’s Sales Tax Holiday is Right Around the Corner!

You might want to wait to do your back to school shopping!

by Cassie Mattia

Ohio’s favorite Back to School Holiday is only a couple of weeks away! Ohio will open up its Sales Tax Holiday on Friday, August 7 beginning at 12 AM and will end on Sunday, August 9 at 11:59 PM.

Loveland Magazine compiled a list of items below that will be exempt from sales and use tax during the Sales Tax Holiday:

1. An item of clothing priced at $75 or less
2. An item of school supplies priced at $20 or less
3. An item of school instructional material priced at $20 or less
4. Items used in a trade or business are not exempt under the sales tax holiday

Although COVID-19 is more present than ever businesses will be allowed to promote “Back to School” sales as there has been no restriction placed on advertising for Ohio’s Sales Tax Holiday.

Have questions about Ohio’s Sales Tax Holiday? Below we included the most frequently asked questions so that you will be prepared on August 7th! Click on the question in blue to view the answer!

What items qualify for the sales tax holiday?

Can multiple qualifying items be purchased in a single tax-exempt transaction?

What items of clothing qualify?

What is not included in the definition of clothing?

Does the $75 exemption apply to the first $75 of an item of clothing?

What if the retailer sells a pair of shoes for $125, can the retailer split the pair of shoes to fall below the threshold?

What types of items qualify as school supplies?

What types of items qualify as school instructional material?

Will items purchased for my business be eligible for the tax exemption during the sales tax holiday?

What about buy one, get one free or items sold for a reduced price?

How should a retailer handle items normally sold as a unit?

How do retailers handle sales of sets containing both exempt and taxable items?

How are coupons and discounts handled?

Does the exemption apply to rain checks?

Does the exemption apply to rebates?

1Does the exemption apply to repairs, alterations, or items for rent?

Does the exemption apply to layaway sales?

Does the exemption apply to mail, telephone, E-mail, and internet orders?

Does the exemption apply to shipping and handling charges?

How should retailers handle exchanges and returns?

How should retailers handle refunds?

How do retailers report exempt sales?

Is reimbursement available for costs to adjust the point of sale equipment?

Can a vendor choose not to participate in the sales tax holiday?

Does the sales tax holiday apply to the county and transit authority permissive tax rates?

Can a retailer advertise for the sales tax holiday?

I often purchase products over the Internet. The website I utilize generally does not charge me the use tax, and I report the use tax related to these purchases on my personal income tax return. During the sales tax holiday, do I still have a use tax requirement for exempt items?

If I purchase from a seller online at 1:00 a.m. on the designated Friday in August but the seller is located on the west coast in the Pacific Time Zone, should I be charged sales tax for those items eligible for the sales tax holiday?

If you have any additional questions regarding this information, contact the Ohio Department of Taxes at 1-800-304-3211, or you may contact them through e-mail.