On February 22, the Senate passed SB 9, the Sales Tax Holiday Bill which would bring a break in sales tax to Ohioans for the third straight year. As in the past, the Ohio Chamber has supported this legislation and supports SB 9. The bill is again sponsored by Sen. Kevin Bacon and overwhelming passed the Senate by a vote of 32-1.
SB 9 is the same as SB 264 which allowed for the “sales tax holiday” in 2016. If passed by the House, SB 9 would allow the following items to be exempt from sales tax on August 4, 5 and 6 in 2017:
- School supplies costing less than $20;
- Clothing items less than $75.
According to a 2015 Sales Tax study done by the University of Cincinnati, the 2015 Sales Tax Holiday saved consumers $3.3 million in taxes on the purchase of back-to-school items totaling over $46 million. Over the three-day period, the holiday generated a gross increase in sales tax collections of nine percent as people also purchased nonexempt items during the same time period.
The bill now goes to the House Ways & Means Committee.