Ohio’s sales tax holiday isn’t just for kids anymore.
Unlike previous years when shoppers could only shop for things like pencils and paper or clothes valued at less than $100, state lawmakers have expanded the sales tax break that could range from anywhere from 5.75% to as much as nearly 8% depending on the county where you shop
Starting Tuesday, shoppers can buy pretty much anything short of a boat or haircut as long as it costs less than $500.
And that goes for the lunch or dinner you might have while taking a break from all that shopping.
The timing of the state’s sales tax holiday that runs through Aug. 8 is no coincidence.
It is timed to help parents shop for back-to-school stuff and maybe something for themselves.
And it is also great timing to not only help shoppers but also retailers spur some additional sales.
More: Restaurants now part of Ohio sales tax holiday, with exceptions. What Akron diners need to know
Kyle Hersh, who is in charge of marketing and development at the Summit Mall and Aurora Farms, said merchants are preparing for a busy 10 days.
He points out that the National Retail Federation projects this year’s back to school and college spending will top $124.4 billion this year making it one of the busiest shopping seasons.
And when it comes to shopping for clothes, Hersh said, shoppers seem to like the idea of being able to try something on before buying.
“Touch, try, buy is why consumers choose to shop in physical stores versus online,” he said.
When is Ohio’s tax-free holiday?
By law, Ohio’s tax-free holiday has to be at least three days that include the first Friday, Saturday and Sunday in August as long as a budget surplus exists.
This year’s tax break for back-to-school shopping in Ohio will start at midnight July 30 and run through 11:59 p.m. Aug. 8.
What items are eligible for Ohio’s tax-free holiday?
The tax break includes all items from pencils to clothes to computers that are $500 or less.
What items are excluded from Ohio’s tax-free holiday?
Essentially, any items purchased from traditional stores like Kohls and Target that are $500 or less are tax-free during the holiday.
There are some exclusions and those include things like watercraft, vehicles, alcoholic beverages, tobacco, vape products and any item that has marijuana.
Is there a limit to how many items for Ohio’s tax-free holiday?
There is no limit to the number of qualified items that will be tax free.
The only limitation is on the amount of a single item (it must be $500 or less).
The Ohio Department of Taxation, for example, says a shopper could purchase two shirts, two pair of pants, a pair of shoes and a jacket with each item costing $100, for a total purchase price of $600 and it would still be tax free.
Does Ohio’s sales tax holiday apply to online orders?
Ohio’s tax holiday does apply to online purchases or orders made by phone during the holiday.
Orders placed before the holiday starts but delivered during the holiday will still be subject to Ohio’s sales tax.
Conversely, any order placed and payment made during the holiday period with a delivery after the tax break will not have a sales tax.
Can a store or retailer refuse to participate in the tax holiday?
By state law, no store, retailers or vendor can refuse to participate in Ohio’s sales tax holiday.
Can I go out to eat tax-free during Ohio’s tax holiday?
Typically, dining at a restaurant is subject to Ohio’s sales tax.
But during the state’s tax holiday, dining inside of a restaurant will be tax free as long as each individual menu item is priced at $500 or less.
Any alcohol purchased and consumed in the restaurant will still be subject to Ohio’s dine-in sales tax but the food items are not.
What are the sales-tax rates in Northeast Ohio?
Counties add their own charges to the 5.75% state sales tax, which means rates vary across the state. Cuyahoga County has the highest sales tax rate at 8%.
Akron-area sales-tax rates are as follows:
- Summit County: 6.75%
- Medina County: 6.75%
- Portage County: 7%
- Stark County: 6.5%
- Wayne County: 6.5%