Saturday, August 3rd, 2024
Ohio takes a break from the taxman
By Carly Fullenkamp
Photo by Carly Fullenkamp/The Daily Standard
A sign advertising the sales tax holiday stands outside Wilson Shoes in Celina.
CELINA- Ohioans have the opportunity to purchase clothes, school and office supplies, musical instruments, personal care products and many other items tax-free through next Thursday.
Previously a three-day affair that applied only to school-related items, the annual sales tax holiday this year was expanded in duration and scope.
This year, tax-free purchases can be made in-person or online for tangible personal property up to $500.
Tangible personal property is any property that can be seen, weighed, measured, felt or touched, including prewritten computer software, according to the Ohio Department of Taxation.
"Some examples of tangible personal property include, but are not limited to electronics, clothes, home goods, dine-in food, dietary supplements, pet food, toys, school and office supplies, sports equipment, luggage, musical instruments, personal care products, and soft drinks," the agency's website states.
Items not eligible for the tax exemption include watercraft, outboard motors, motor vehicles, alcoholic beverages, tobacco, vapor products, or any item that contains marijuana.
Ohio Council of Retail Merchants President and CEO Gordon Gough supported Gov. Mike DeWine's decision to expand the holiday.
"In a time when inflation has had a serious impact on Ohioans, the Governor and General Assembly's actions to greatly enhance Ohio's state tax holiday is offering real benefits to Ohio consumers," Gough said in a statement.
In addition to providing relief for consumers, the expanded holiday also brings in more customers for businesses of all kinds. Sherri Black, co-owner of Wilson Shoes in Celina, has already seen a noticeable increase in business since Tuesday, the first day of the sales tax holiday.
"Sometimes to shop local, it is more expensive. So, this is just helping. It just makes it more affordable for people," Black said.
Not everyone will directly benefit from the expanded holiday, though. The state plans to reimburse the revenue losses to counties and transit authorities that levy permissive sales taxes and the local government fund and public library fund, per the County Commissioners Association of Ohio Statehouse Report.
The language of the expanded holiday only requires the state to reimburse revenue lost in the month of August. Since there are two days in July included in the holiday, the counties, transit authorities, LGF, and PLF will not receive reimbursement for those days as it stands now. The state is working on this issue, though.
"The Governor's Office and the Department of Taxation have spoken with CCAO and intend to work with the legislature to maintain the spirit of the original language and ensure that counties and other affected entities will receive reimbursement for those two days as well," the CCAO Statehouse Report states.
- The Associated Press contributed to this story.
