Ohio sales tax holiday, August 2018
- Sales Tax News
- Nov 30, 2017 | Gail Cole
Earlier this year, the Ohio Legislature enacted a one-time-only sales tax holiday. It applies to both state and local sales tax, is not optional, and is set to run from 12:00 a.m., Friday, Aug. 3, 2018, through 11:59 p.m., Sunday, Aug. 5, 2018.
The following items are exempt from sales and use tax during the tax-free period, provided they’re purchased for personal use:
- Clothing with a priced at $75 or less
- School instructional materials priced at $20 or less
- School supplies priced at $20 or less
The state defines clothing as “all human wearing apparel suitable for general use.” This includes blazers and blouses, dresses, rainwear, shirts and sweaters, shoes and shoelaces, trousers, and ties. In addition, it includes:
- Baby receiving blankets
- Diapers, for adults and children
- Garter belts and girdles
- Formal wear and wedding apparel
While athletic supporters qualify for the exemption, sports and recreational equipment does not. Sports and recreational equipment includes athletic gear such as baseball and boxing gloves, cleats and tap shoes, mouth guards, shin guards, and shoulder pads.
Protective equipment such as breathing masks and protective gloves don’t qualify for the exemption either.
School instructional materials
Only a handful of school instructional materials are eligible for the exemption: globes, maps, reference books and maps, textbooks, and workbooks that cost no more than $20.
The exemption applies to certain school supplies only. If it’s listed below, it must cost no more than $20 to be eligible. If it’s not listed below, it’s not exempt:
- Binders and folders (expandable, manila, pocket, and plastic)
- Blackboard chalk, crayons, highlighters, markers, pencils, and pens
- Book bags and lunch boxes
- Calculators, compasses, protractors, rulers, and scissors
- Cellophane tape, erasers, glue, paste, and glue sticks
- Colored paper, composition books, construction paper, copy paper, graph paper, legal pads, loose-leaf ruled notebook paper, notebooks, manila paper, paper, poster board, tracing paper, and writing tablets
- Index cards and index card boxes
- Pencil boxes, other school supply boxes, and pencil sharpeners
Any business that makes sales in Ohio and is registered to collect and remit Ohio sales tax — even those located in other states — must comply with the sales tax holiday.
The tax holiday is determined by the time zone of the seller’s location. In other words, at midnight on Aug. 3, 2018, Ohioans won’t be able to purchase qualifying goods tax-free from a retailer located in California because it will only be 9:00 p.m. in California. Learn more about the 2018 Ohio sales tax holiday from the Ohio Department of Taxation.
Sales tax holidays can quickly complicate sales and use tax compliance for affected retailers. Fortunately, tax automation software takes the complexity out of sales tax compliance. Learn more.