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 shoelaces
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
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:
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.
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