Sales Tax Holiday Becomes Permanent

The legislature brought some future certainty to Ohio’s Sales Tax Holiday on Wednesday. Senate bill 226 establishes a three-day period each year during which clothing and school supplies and instructional materials are exempt from state and local sales and use taxes. Similar sales tax holidays were held in August of 2015, 2016, and 2017; however, those tax holidays were each authorized separately as one-time events. This bill will make it a permanent holiday the first Friday, Saturday and Sunday of August.

The bill’s exemption includes items of clothing up to $75 each, items of school supplies and instructional materials up to $20 each. Evidence has supported business growth through more participation in shopping, with many retailers reporting higher sales on other goods, not just those exempt from sales tax. The sales tax holiday helps brings customers into stores, but once there they don’t limit their purchases to exempt items.