Don’t look now, but August is here. With summer winding down, it’s time to start sharpening your pencils for this fall’s school year.
Get the most out of your back-to-school shopping with Ohio’s annual sales tax holiday on Aug. 6-8. During the weekend, all clothing items priced under $75, all school supplies priced under $20 and all school instructional materials priced under $20 are exempt from Ohio’s 5.75% sales tax.
After the state held a pilot program for three years, the sales tax holiday became permanent in 2018. It is now held each year on the first weekend of August.
“This is something that a variety of states have enacted, including all of our border states, to sort of give that relief particularly in the back-to-school time for Ohio families,” says Sen. Niraj Antani, who co-sponsored Ohio Senate Bill 226, which made the holiday permanent.
Here’s what you need to know before you visit your favorite shops this weekend.
Only certain purchases are eligible. Eligibility is determined item-by-item, and there’s no limit on the number of items you can purchase. Eligible clothing includes everything from shirts, uniforms, coats, costumes and diapers to wedding apparel. The exemption does not include clothing accessories, protective equipment, sewing supplies or sports equipment along with items used for a trade or business. Eligible school supplies include binders, backpacks, calculators, pencils, pens and lunch boxes, among others. Although the holiday is timed for families to do their back-to-school shopping, all Ohioans can take advantage of the savings so long as they purchase qualifying items. “Anyone can use it, not just people shopping for school,” Antani says. The full list of eligible items and other FAQs can be found on the Ohio Department of Taxation’s website.
You don’t have to shop in person to save. Purchases of eligible items made by phone, e-mail or online still qualify for the sales tax exemption if the order and payment are accepted during the holiday. Make sure to pay attention to the retailer’s time zone — the sales tax exemption does not start until 12 a.m. on Aug. 6 in each time zone. If all items in a shipment are qualifying items, shipping and handling charges are not taxable as well.
The holiday has benefits for both buyers and retailers. The success of the pilot program made it clear to Antani that the weekend was beneficial to Ohioans. “It's definitely proven to be worth it and is very popular for consumers,” Antani says. For families, doing back-to-school shopping during the weekend can equate to hundreds of dollars in savings. Antani says that the weekend is beneficial for retailers as well, with many of them supporting the holiday becoming permanent. “This is going to put people in our stores buying things,” Antanti says. “Maybe they couldn't afford that item of clothing they really wanted, but now that it's sales tax free, that little savings goes a long way and will certainly encourage them to get the things they need in these stores.”