Bob Vitale and Nathan Hart, Columbus Dispatch
Updated ·4 min read
Ohio's sales-tax holiday started last week. If you haven't gotten your shopping done yet, though, don't worry, there's some time.
The holiday runs through 11:59 p.m. on Aug. 8. According to the Ohio Department of Taxation, the sales-tax waiver will cover all tangible personal property — basically, anything that can be touched, moved or consumed — that is $500 or less.
Still have questions? We've got answers.
Does the exemption apply to online purchases?
Items ordered online are covered under the tax-free weekend. If you place an order before the holiday begins and it's delivered during the holiday, it will be taxed. But if ordered during the holiday, the cost of shipping and handling is also tax-free.
If you're buying something on layaway that's less than $500, the exemption will apply during the sales tax holiday.
Does the tax holiday apply at restaurants?
Restaurants charge sales taxes on food that's eaten on their premises, not on food that's ordered at a drive-thru or for carryout or delivery. Alcoholic beverages and soft drinks are taxed.
That means the sales-tax holiday will apply only to dine-in meals and a can or bottle of pop you might add to your carryout pizza order. Again, beer, wine and co*cktails will be taxed even during the exemption period.
More: Expansion of Ohio sales-tax holiday for 2024 adds restaurant meals to annual exemption
What items aren't eligible for the holiday?
Watercraft and motor vehicles are not eligible for tax exemption, as well as tangible personal property over $500. Cigarettes, alcoholic beverages, tobacco, vaping products, and items containing marijuana will not be covered.
The exemption also does not apply to taxable services like alterations on clothing, car repairs, or similar services. Shoppers can't use the tax discount on periodic payments that require multiple payments over time, even if the item is under $500.
More: Ohio's tax-free holiday starts tomorrow. Here's what items won't be included
What are sales-tax rates in central Ohio?
State government imposes a 5.75% sales tax on most retail sales and services. Counties and transit authorities add their own charges, which means rates vary across the state, from 6.5% in northeast Ohio's Lorain County to 8% in neighboring Cuyahoga.
Central Ohio sales-tax rates are as follows:
Franklin County: 7.5%
Delaware County: 7%, although the rate is 7.5% in portions of Columbus and Westerville that extend into Delaware County because they are part of COTA's service territory
Licking County: 7.25%, although the rate is 7.75% in the portion of Reynoldsburg that extends into Licking County for COTA services
Fairfield County: 6.75%, although the rate is 7.25% in Fairfield County portions of Columbus and Reynoldsburg that receive COTA service
Pickaway County: 7.25%
Madison County: 7%
Union County: 7%, although the rate is 7.5% in the portion of Dublin that extends into Union County and is part of COTA's service area
Can you use coupons to qualify for the exemption?
If you have coupons, a loyalty card or another kind of discount and you can bring the price of an item below $500, it will then qualify for the tax exemption. For example, if you're buying a $600 table but you have a coupon for $150 off, the new price will be $450 and be tax exempt.
Does the exemption apply toward a more expensive item? What about splitting items?
If something costs more than $500, you'll have to pay the full sales tax on it. If you're buying a $1,000 microwave, you won't get a tax discount on the first $500 of its price; it'll be taxed normally.
Retailers also can't split items normally sold together to qualify for the tax exemption. If you're buying a $600 pair of shoes, the retailer isn't allowed to sell each shoe individually for $300 to try to get the exemption. You'll have to pay normal taxes on the pair.
Do items on layaway qualify?
If you choose to buy an item that costs less than $500 on layaway during the holiday, the exemption will apply. It'll also apply if you're picking up a qualifying item during the holiday.
How do refunds and returns work?
Refunds and exchanges are a bit complicated during the holiday.
If you're exchanging an item you bought during the holiday for the same item, the store can't charge you sales tax even if the holiday has ended.
If you return an eligible item during the holiday and use store credit to buy another eligible item, both the return and the new purchase will be tax exempt.
But if you return a tax-exempt item after the holiday has ended, and you then buy a different item, sales tax will apply.
If you're mistakenly charged sales tax on an eligible item during the holiday, you can take your receipt back to the retailer for a refund.
rvitale@dispatch.com
nhart@dispatch.com
This article originally appeared on The Columbus Dispatch: Ohio's tax-free holiday ends Aug. 8. See the best shopping deals
