The sales tax holiday has become an annual tradition, with the Legislature now passing one in 11 of the last 12 years.
“The sales tax holiday is a shot in the arm for individuals, families and businesses alike”, said House Speaker Robert A. DeLeo, D-Winthrop, in a statement. It’s a great way to stock up on some essentials, mainly for back-to-school, without spending unnecessary money.
For example, Target is offering “buy one, get one 50% off”, on numerous popular back-to-school items.
Clothing and footwear must be priced $100 or less per item.
Backpacks priced under $100 sold for use by elementary and secondary students are exempt during the sales tax holiday, the website states.
The Legislative Service Commission has estimated the holiday could lead to the loss of up to $14 million in sales tax revenue and that local governments would lose about $3.7 million of that.
Customers pay various kinds of taxes all year long, and Lavine said he hears from them that there is something different about the holiday than just a regular sale. “They’re concerned about filling a refrigerator”, said State Rep. Alan Silvia, D-Fall River, who called the sales tax holiday a “gimmick” that takes too much money out of the state coffers.
School supplies costing less than $20 per item are also tax exempt.
Answer: The issuance of a rain check during the sales tax holiday will not qualify an item for the exemption if the item is actually purchased after the sales tax holiday.
The bill directs the revenue commissioner to take actions to comply with federal requirements that states simplify the collection of sales and use taxes from remote sellers, including providing “adequate” software and services to such sellers.
Ohio’s first tax holiday on back-to-school purchases is August 7-9.
Those efforts proved unsuccessful, particularly since lawmakers and Gov. John Kasich had been moving in the opposite direction, raising the sales tax rate by a quarter of a cent in 2013 to 5.75 percent and slightly expanding the base on which the tax is applied.
Ohio is the the only state in the Midwest with a tax holiday and Lora Miller at the Ohio Council of Retail Merchants says the council expects shoppers from neighboring states to cross the border and shop.