Ohio to Offer One-Time Sales Tax Holiday This August– May 13, 2015 by Tracy Monroe

School hasn’t let out yet for the summer, butthe state of Ohio has announced a one-time sales tax holiday that may have you planning ahead for next year’s school-clothes-and-supply-shopping spree. From Friday, August 7th (starting at 12:01 a.m.) through Sunday, August 9th (until 11:59 p.m.) individuals can purchase the following items without being charged any Ohio sales and use tax:

  • An item of clothing $75 or less
  • A school supply item $20 or less
  • A school instructional material priced at $20 or less

The state has compiled a detailed Q&A section for more information about the tax holiday, but according to the site, items of clothing include, but are not limited to, shirts; blouses; sweaters; pants; shorts; skirts; dresses; uniforms (athletic and nonathletic); shoes and shoe laces; insoles for shoes; sneakers; sandals; boots; overshoes; slippers; steel-toed shoes; underwear; socks and stockings; hosiery; pantyhose; footlets; coats and jackets; rainwear; gloves and mittens for general use; hats and caps; ear muffs; belts and suspenders; neckties; scarves; aprons (household and shop); lab coats; athletic supporters; bathing suits and caps; beach capes and coats; costumes; baby receiving blankets; diapers, children and adult, including disposable diapers; rubber pants; garters and garter belts; girdles; formal wear; and wedding apparel.

School supplies include only binders; book bags; calculators; cellophane tape; blackboard chalk; compasses; composition books; crayons; erasers; folders (expandable, pocket, plastic, and manila); glue, paste, and paste sticks; highlighters; index cards; index card boxes; legal pads; lunch boxes; markers; notebooks; paper; loose leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, and construction paper; pencil boxes and other school supply boxes; pencil sharpeners; pencils; pens; protractors; rulers; scissors; and writing tablets.

School instructional materials include only reference books; reference maps and globes, textbooks and workbooks.

What’s the catch? There is one. A trade or business is not included in the exemption. So, if you purchase an item to be used in a trade or business and the retailer does not collect sales tax, you are obligated to report the purchase and pay the appropriate use tax on the item.

The state is offering the holiday as a way to help consumers with their back-to-school shopping. Take advantage while it lasts!

We want to hear from you! We encourage you to comment below on this blog post, share it on social media or contact Tracy Monroe at tmonroe@cohencpa.com or a member of your service team for further discussion.

This communication is published by Cohen & Company for our clients and professional associates. Cohen & Company is not rendering legal, accounting or other professional advice. Any action taken based on information in this publication should be taken only after a detailed review of the specific facts and circumstances.