A voter-approved sales tax hike for Central Ohio Transit Authority takes effect Tuesday, April 1, in Franklin County and surrounding areas—no, it’s not an April Fool’s joke.
Many everyday purchases, dining out or even booking a local hotel room will be more expensive.
Voters passed Issue 47 in November to help fund new transportation projects. The half-percent tax increase will fund $2 billion in new Bus Rapid Transit lines along with hundreds of miles of new sidewalks and bike paths, NBC4 News reports.
The Central Ohio Transit Authority levy may not seem like much, but the extra .5% increase pushes the total sales tax to 8% or more in most impacted communities. The increase applies to all of Franklin County and sections of four surrounding counties, The Columbus Dispatch reported.
The added .5% increase brings COTA’s total share of local sales tax to 1%. COTA placed the proposal on the ballot as a way to fund Columbus LinkUS, an infrastructure plan to improve public transit and create sidewalks, bikeways and trails in addition to expanding COTA bus services throughout the Columbus metro area.
In addition to Franklin County, COTA’s sales tax applies in neighboring communities, where Dublin, Westerville, Columbus, and Reynoldsburg dip into surrounding counties. Areas of Delaware, Licking, Fairfield, and Union counties that are served by COTA will also see the 0.5% increase.
The measure passed with about 57% voting in favor of the extra COTA tax, NBC4 News reported. The increase means consumers will pay an extra 5 cents for every $10 spent.
The company previously stated that the levy is expected to generate more than $6 billion by 2050, allowing COTA to add new zones and transit lines over the next five years.
Community officials also praised the LinkUS plan as a way to improve interconnectivity and expand COTA services.
“I think it’s really important for people to realize how this is going to improve their quality of life,” Columbus Mayor Andrew Ginther told NBC4 in July. “It’s going to connect our entire community, whether you live in Dublin, Grove City, the Near East Side, in a township, all over the COTA service area.”
Ohio’s sales tax encompasses state, county and local transit authority taxes. Sales tax applies to most purchases and services, including restaurant meals, hotel rooms and online purchases. There are some key exemptions to sales tax in Ohio; most groceries and to-go food are not taxed.
Currently, the state imposes a 5.75% sales tax on most sales and services. With the COTA increase, Franklin County’s total sales tax rate now sits at 8%, including 1.25% for the county and 1% for COTA, tying it with Cuyahoga County for the highest in Ohio, NBC 4 News reports.
And residents of the Licking County part of Reynoldsburg will now have the highest sales tax in Ohio. Sales tax there is rising to 8.25% since Licking County imposes a 1.5% sales tax, The Columbus Post Dispatch reported.
The parts of Dublin in Union and Delaware Counties will see an 8% sales tax.
The portions of Columbus and Westerville in Delaware County will also have an 8% sales tax.
In areas where Columbus and Reynoldsburg dip into Fairfield County, there will be a 7.75% sales tax.
Residents will feel it most on big purchases like appliances and vehicles. And you can't cross county lines to shop around for a lower sales tax on a car. Ohioans must pay sales tax on vehicle purchases based on their home address, not where they buy, The Dispatch notes.
Here are some things that sales tax does not apply to in Ohio:
- Most groceries and food purchased for take-out
- Prescription medication and prescribed medical equipment
- Public utilities including gas, water, and electricity
- Newspapers
- Many sales involving churches and nonprofits as long as the nonprofit doesn’t make sales on more than six days in the year (think thrift stores)
- Gasoline for vehicles that is instead subject to the state gas tax of 38.5 cents per gallon
