Friday 07/29/2016

A Sales Tax Holiday is Coming Up!

James A. Kilgore, CPA has information about the “Back to School” Ohio sales tax holiday:

 

 

Ohio will have a one-time sales tax holiday from Friday, August 5 at 12am until Sunday, August 7 at 11:59pm. During this time, approved purchases are exempt from sales and use tax.

The following items qualify for this exemption, meaning you can buy them with no tax:

  • An item of clothing priced at $75 or less;
  • An item of school supplies priced at $20 or less; and
  • An item of school instructional material priced at $20 or less.

Keep in mind, there are a few rules. The exemption does not apply to items used in a trade or business. Also, items purchased in a buy-one-get-one-free sale are looked at on a price per item basis. Therefore, if you buy two articles of clothing in a buy-one-get-one-free sale and one item is $80 and the other is free, the $80 item does not qualify for the exemption because it is over the $75 threshold for clothing. Also, the price per item is determined after any discounts or coupons unless it’s a manufacturer’s coupon.

Here is a good resource for additional questions. Happy shopping!

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