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Ohio Tax Holiday
Senate Approves
2016 Sales Tax Holiday Bill
Families could see relief on back-to-school shopping again this year
COLUMBUS - The Ohio Senate today passed legislation, sponsored by State
Senator Kevin Bacon (R-Minerva), which would create the Ohio Sales Tax
Holiday in time for back-to-school shopping in August. The sales tax
holiday provides a sales and use tax exemption for customers purchasing
certain retail items during the first weekend in August and is intended
to boost sales while giving taxpayers a break.
"The legislation is an effort to help families preparing their kids to
go back to school in August," said Senator Bacon. "The opportunity to
save money on essential clothing and school items reduces the financial
strain on consumers and boosts sales for local businesses."
In 2015, the widely advertised tax-free shopping period was praised by
both back-to-school shoppers and retailers. Senator Bacon's latest
proposal would require all online and in-store vendors to waive the
collection of local and state sales taxes on designated items during
the three-day tax holiday.
“Last year’s Ohio Sales Tax Holiday proved to be a win-win for parents,
students and businesses alike. It’s important that we renew the tax
break this year to ensure Ohio families benefit from these savings
opportunities."
Savings would again apply to items of clothing priced at $75 or less,
commonly used school supplies—crayons, book bags, pencils, etc.—priced
at $20 or less, and school instructional materials like textbooks and
workbooks priced at $20 or less. The price limits apply per item, so
consumers can buy as many tax-exempt items under the price limit as
they wish, either online or in stores.
Ohio was one of 18 states to host a sales tax holiday last year.
According to the National Retail Federation, the average family with
school-age children spent an estimated $669 on back-to-school supplies
and clothing in 2014, or $470 without factoring in the cost of
computers and electronics.
Senate Bill 264 will now go to the House of Representatives for further
consideration.
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