Ten day 'Tax Holiday' underway for back-to-school shopping and more
Ohio's first ten-day tax holiday got underway for shoppers in Tuesday.
In years past, the State of Ohio has held a sales tax holiday where shoppers were free of paying sales tax on certain items like clothing and school supplies for one weekend. This year, that holiday will last more than just one weekend and shoppers will have even more tax-free choices.
According to the Ohio Department of Taxation's website, this year's sales tax holiday will last from Tuesday, July 30 until Thursday, August 8.
In addition to the extended length of the tax holiday, many more items other than school supplies and clothing will be free of sales tax including sporting goods, electronic devices, internet sales and even meals eaten at restaurants.
The tax holiday applies to tangible personal property valued at $500 or less.
"It's just about anything you could buy," said Joe Bell, Director of Corporate Communications with Cafaro Company. "Everyone's been hurt by inflation. It's been pinching people's pockets and people are looking for relief. If you can get 7.5% off your total purchase, that's the sales tax on it, then why not."
There is no limit on the number of items purchased, so if a customer buys multiple items with a purchase totaling $600, there will be no sales tax on the entire purchase as long as each item sells for $500 or less.
However, if even one item exceeds that $500 threshold, the entire purchase will be subject to sales tax. But if you have a coupon to reduce the price of an item to under $500, that item is no longer subject to sales tax.
In addition to items valued over $500, shoppers will still need to pay sales tax on the following items:
- Motor vehicles
- Watercraft or outboard motors
- Alcoholic beverages
- Tobacco/vaping products
- Marijuana products
Retailers are also not allowed to split items over $500 that are traditionally sold together such as skis in order to reduce the value.
The school supply store, The Supplyroom along Belmont Ave. said the tax-free holiday is one of their busiest times of the year. Not only do parents benefit, but teachers as well.
"Teachers spend a ton of their own money getting ready to open their classroom," explained Charlotte Fader, Manager with The Supplyroom. "It really does benefit them. You're saving a lot of money."
Their best-selling items on tax-free weekends include bulletin board sets and classroom decor. Fader agrees any discount helps the consumer.
"They're not paying those taxes and they're going to make sure they get what they need for their back to school," Fader added.
Local stores around the Valley agree the tax-free weekend will even offer a boost in sales to businesses around town. Eastwood Mall is offering a $25 gift card that consumers can use at any mall location for every $200 spent.
An FAQ on the sales tax holiday can be found here.