Chris Eichmuller, CPA has information about the “Back to School” Ohio sales tax holiday.
Ohio’s annual tax holiday starts this Friday, August 3 and ends Sunday, August 5 at midnight. During this time, approved purchases are exempt from sales and use tax. Items that fall under the exemption are as follows:
- 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.