Ohio’s Streamlined Sales Tax Taxability Matrix has been updated to reflect the 2015 sales tax holiday.
Ohio will provide for a three-day sales tax holiday in August 2015 – a one-time event. It is set to begin at 12:01 a.m. on Friday, August 7 and it will conclude on Sunday, August 9 at 11:59.
During the tax-free period, the following will be exempt from Ohio sales and use tax when purchased for personal use:
- Clothing priced $75 or less
- School supplies priced at $20 or less
- School instructional materials priced at $20 or less
Clothing is defined as “all human wearing apparel suitable for general use.” It includes, but is not limited to, the following:
- Bathing suits and caps
- Blouses and shirts
- Diapers (both for children and adults)
- Garters, garter belts, and girdles
- Hosiery and pantyhose
- Pants and shorts
- Skirts and dresses
- Shoes and shoe laces
Taxable Clothing and Accessories
The following is a sampling of items that are not exempt during the sales tax holiday:
- Clothing accessories or equipment, including handbags, jewelry, and umbrellas
- Items purchased for use in a trade or business
- Sports or recreational equipment
Items that are normally sold as a unit and that include both taxable and exempt items must be sold as a unit during the tax-free period and taxed. Only if the components of a set are normally priced as separates may they be sold as separate articles.
Exempt school supplies include the following:
- Binders and notebooks
- Legal pads and loose leaf ruled notebook paper
- Graph paper
- Colored paper and construction paper
- Protractors and rulers
- Scissors and erasers
School Instructional Materials
Few items qualify for the exemption as school instructional materials. These are:
- Reference books
- Reference maps
Items purchased by mail, catalog, email or Internet qualify for the sales tax holiday if both of the following are true:
- The consumer orders and pays for the item during the holiday
- The retailer accepts the order during the holiday “for immediate shipment, even if delivery is made after the exemption period”
Shipping charges may qualify for the exemption, or they may not. If the entire order is exempt, shipping charges are exempt. If a portion of the order is subject to tax, then the retailer “must charge tax on the portion of the shipping and handling charges allocated to the taxable items in the shipment.”
Report the Sales!
All vendors must comply with the sales tax holiday, and retailers must report sales of qualifying clothing, school supplies, or school instructional materials on Line 1 of the Ohio sales and use tax return.