What you need to know about Tax Free Weekend

State tax-free school shopping filled the Kohl’s in Sugarcreek Twp. with many moms shopping for back-to-school clothes on last August. Ohio’s sales tax holiday last August boosted sales tax revenues by $4.7 million while saving Ohio consumers $3.3 million in taxes.
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State tax-free school shopping filled the Kohl’s in Sugarcreek Twp. with many moms shopping for back-to-school clothes on last August. Ohio’s sales tax holiday last August boosted sales tax revenues by $4.7 million while saving Ohio consumers $3.3 million in taxes.


What you need to know about the sales tax holiday

• Clothing is defined as all men’s, women’s and children’s apparel suitable for general use. Traditional items such as shirts, pants, skirts, sweaters, dresses and shoes are included, but so are disposable diapers, formal wear and wedding apparel. Visit www.tax.ohio.gov for a complete list.

• The exemption only applies to items selling for $75 or less. If an item of clothing sells for more than $75, the tax is due on the entire selling price. In addition, retailers cannot split items that are normally sold together in order to fall under the sales price threshold. .

• School supplies are defined and include items such as crayons, notebooks, binders, book bags, calculators, composition and spiral notebooks, etc. Visit www.tax.ohio.gov for a complete list.

• If a retailer offers a discount to reduce the price of an eligible item to $20 or less (applies to school supplies) or $75 or less (applies to clothing), the item will qualify for the exemption. This applies to all discounts even if a retailer’s coupon or loyalty card is required to secure the discount.

Source: Ohio Department of Taxation

Retailers are gearing up for big crowds of back-to-school shoppers this weekend for the state’s tax-free holiday, which last year saved consumers more than $3 million in sales tax.

Under the sales tax holiday that begins Friday, certain items are exempt from sales tax, including clothing priced at $75, school supplies and instruction material priced under $20.

Ohio’s initial sales tax holiday last August boosted sales tax revenues by $4.7 million and saved shoppers $3.3 million on sales tax, according to a study from the University of Cincinnati. Local business officials expect to see that revenue increase again this weekend.

“I would anticipate that we’re going to see that same, if not greater increase, when you compare August 2015 to August 2016 following the sales tax holiday,” said Chris Kershner, vice president of public policy and economic development for the Dayton Area Chamber of Commerce.

The sales tax holiday, which continues through midnight on Sunday, provides much-needed relief to hard-working families who incur extra educational costs every year before their children go back to school, Kershner said.

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