Ohio taxpayers won’t have to pay taxes for part of August, and they won’t have to fear possible repercussions.
Ohio is holding a two-week sales tax holiday in early August that ostensibly helps taxpayers with back-to-school preparations.
Last year, lawmakers expanded the Sales Tax Holiday to include more items and run for a more extended period.
Instead of the usual three days, this year’s Sales Tax Holiday runs from midnight on Friday, Aug. 1, until 11:59 p.m. on Thursday, Aug. 14.
The holiday was also expanded to include a wide range of items, up to $500, rather than being limited to school supplies.
“The timing of this year’s sales tax holiday not only supports families preparing for back-to-school, but also provides relief on other important household needs,” Republican Ohio Gov. Mike DeWine said in a release.
During the tax reprieve, shoppers can buy qualifying items in-store and online without paying state sales tax. The tax holiday does not include services or purchases of motor vehicles, watercraft and outboard motors.
The purchase of alcohol, tobacco, vapor products, and items with marijuana is also exempt from the tax reprieve.
“Ohio’s sales tax holiday is a practical way we can help working families keep more of their hard-earned dollars,” Ohio House Speaker Matt Huffman, R-Lima, said in a release. “Whether it’s back-to-school shopping or everyday essentials, this is an opportunity for Ohioans to get more value for their money.”
“The hardworking taxpayers deserve this well-earned break,” Senate President Rob McColley, R-Napoleon, said in a release. “It is the people’s money first, and they know how best to spend it. I strongly support any opportunity to boost the ability of Ohioans to provide for their families.”
A spokesperson for the Ohio Department of Taxation did not immediately respond to a request for comment on how much in tax revenue the state would forego with the holiday.
According to data from The Tax Foundation, which examined all 50 states and the District of Columbia, Ohio had $5,741 in state and local tax collections per capita in fiscal 2022, ranking it 32nd. Nationwide, collections per capita stood at $7,109.
Regionally, West Virginia collects $5,335 per capita, ranking it 36th in the nation, while Michigan collects $5,281, ranking it 38th, and Kentucky collects $5,223, ranking it No. 41. Pennsylvania collects $6,644 per capita, ranking it 22nd in the nation.
Nationally, Alabama collected $4,722 per capita, the lowest of any state. Conversely, the District of Columbia collected $14,974, the highest of any jurisdiction.
Taxes are a hot-button topic in the Buckeye State.
Americans for Prosperity-Ohio wants lawmakers to advance a measure to create a lower flat tax in the state. Senate Bill 3 would lower the state’s personal income tax to 2.75% over two years, eliminating the state’s current progressive tax.
Additionally, the Ohio Ballot Board recently approved a proposed constitutional amendment that would bring eliminating Ohio’s property tax one step closer to the voters.
The proposed amendment would eliminate taxes on real property and prohibit the imposition of future taxes. Real property includes the land, crops growing, and all buildings, structures, and improvements.
While the state House has approved Ohio’s biennial budget, the Ohio Senate Finance Committee is expected to release its version of the state’s spending plan on Tuesday. McColley told the Statehouse News Bureau he would like the state Senate to approve the budget by June 12.
DeWine must sign the state budget by the end of June. One of the issues that could be contentious as the Senate begins its deliberations is whether to include $600 million in taxpayer money to secure bonds for a new Cleveland Browns stadium in the Cleveland suburb of Brook Park.
