Ohio sales tax holiday questions answered

Chamber members in the retail industry are preparing for an influx of customers for Ohio’s 2018 Sales Tax Holiday. We’ve teamed with the Downtown Dayton Partnership to provide this overview of the holiday:

Beginning at 12am on Friday, August 3 and ending at 11:59 p.m. on Sunday, August 5, select items purchased will not be subject to Ohio’s sales tax. There is no limit to the amount of exempt items that can be purchased in one transaction and all vendors must comply. These items qualify for the tax exemption:

• Any item of clothing priced at $75 or less
• Any item of school supplies priced at $20 or less
• Any item of school instructional material priced at $20 or less
  

  Shoppers will be able to take advantage of waived Ohio sales tax August 3-5, 2018.

The Ohio Department of Taxation website (www.tax.ohio.gov) has a comprehensive FAQ sheet about the program; some of the most pertinent ones to Dayton retailers are listed below.

What items of clothing qualify?

“Clothing” is defined as all human wearing apparel suitable for general use. “Clothing” includes, but is 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.

What types of items qualify as school supplies?

“School supplies” include only the following items: 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. Items not included in this list are taxable. “School supplies” does not include any item purchased for use in a trade or business.

What types of items qualify as school instructional material?

“School instructional material” includes only the following items: reference books, reference maps and globes, textbooks, and workbooks. Items not included in this list are taxable.  “School instructional material” does not include any material purchased for use in a trade or business.

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

No. The sales tax holiday is set by law and vendors must comply.

There are more FAQs online that address specific issues that may be relevant to your business. For questions not covered in the FAQ, contact the Ohio Department of Taxation at 1-800-304-3211, or e-mail them at https://www.tax.state.oh.us/email/TaxMailWeb/global_emailus.html

Find Dayton Area Chamber member retailers here.