Ohio lawmakers are considering a one-year sales tax holiday for clothing and school supplies. If the bill becomes law as currently written, the holiday will run from August 7-9, 2015.
The bill seeks to exempt school supplies costing $20 or less per item, as well as clothing costing $75 or less per item (or pair). Sports and protective equipment would not qualify for the exemption.
The bill made its way through a House committee, where among other changes the Senate-endorsed exemption for computers and tablets costing less than $1,000 was removed. One change that Democrats could not get through was a guarantee “that counties would not lose revenue as a result of the sales tax holiday.” The Columbus Dispatch reports that the holiday would cost local tax jurisdictions an estimated $3.2 million, “plus a $500,000 loss in state local-government funding.”
As often happens at the end of a legislative session, lawmakers have attached other, unrelated items to the sales tax holiday legislation. The current version includes a historic-preservation tax credit for the Columbus Association for the Performing Arts (CAPA).
Is your business prepared for an Ohio sales tax holiday? Automated sales tax software as a service (SaaS) can make it so. Learn more.
