Tax Free Shopping for Back-to-School

July 14, 2016

The Ohio Department of Taxation announced that the 2016 Sales Tax Holiday will start on Friday, August 5, 2016 and end on Sunday, August 7, 2016 at midnight.  During the holiday the following items will be exempt from sales and use tax:

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

There is no limit on the amount of the total purchase as long as each item you purchase meets the qualifications above.  For example, you can purchase two shirts, five pairs of pants, one coat and one pair of shoes and as long as each item is $75 or less the entire purchase would be tax free.  If your qualified purchases totaled $450, this would equate to a tax savings of over $30.

There are several items of clothing that are not eligible for the holiday and are still subject to sales tax.  Some of the items that do not qualify are:

• Items purchased for use in a trade or business
• Sports or recreational equipment
• Clothing accessories such as hairs bows, purses, sunglasses, wallets, watches etc.

Qualified items sold to consumers by mail, telephone, email or internet will also qualify for the sales tax holiday as long as the consumer purchases and pays for the items during the exemption period and the purchase is set for immediate shipment.

Ohio has provided a list of frequently asked questions regarding the sales tax holiday. If you have any additional questions, please contact us.