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When is 2023 Ohio sales tax holiday? | Paul Pahoresky

With the cost of everything continuing to rise any chance to save money is a welcome relief.

The annual sales tax holiday begins at midnight Aug. 4 and ends at midnight Aug. 6.

This is the time to take advantage of this tax-savings opportunity whether it be at a traditional brick and mortar store or online.

Although these savings are intended to help families with school supplies and clothing for children, it is not limited to items for children.

During the holiday, the following items are exempt from both sales and use tax:

• An item of clothing priced at $75 or less;

• An item of school supplies priced at $20 or less; and

• An item of school instructional material priced at $20 or less.

There is no limit on the amount of the total purchase as the qualification is determined item by item. However, if an item cost exceeds the limits then the entire item is subject to sales tax. So, the calculator or laptop that your child may need is not sales tax exempt, but basic school supplies would be exempt.

The challenge many parents face is that the required school supply list is often not available until after school starts.  However, most students will still need pens, pencils, notebooks and filler paper regardless of the specific list.

“Clothing” is defined as all human wearing apparel for general use. “Clothing” includes, but is not limited to shirts; blouses; sweaters; pants; shorts; skirts; dresses; uniforms (both athletic and nonathletic); shoes and shoe laces; insoles for shoes; sneakers; sandals; boots; overshoes; slippers; steel-toed shoes; underwear; socks and stockings; hosiery; pantyhose; coats and jackets; rainwear; gloves and mittens for general use; hats and caps; earmuffs; belts and suspenders; neckties; scarves; aprons (both household and shop); lab coats; athletic supporters; bathing suits and caps; beach capes and coats; costumes; baby receiving blankets; both children and adult diapers including disposable diapers; rubber pants; garters and garter belts; girdles; formal wear; and wedding apparel.

While clothing is eligible for the holiday, the following items are not eligible for the holiday and are subject to tax during the holiday period:

• Items purchased for use in a trade or business.

• Clothing accessories or equipment. Clothing accessories or equipment include: briefcases; cosmetics; hair notions, including, but not limited to, barrettes, hair bows, and hair nets; handbags; handkerchiefs; jewelry; sun glasses (non-prescription); umbrellas; wallets; watches; and wigs and hair pieces.

• Protective equipment.

• Sewing equipment and supplies

• Sports or recreational equipment. Sport or recreational equipment includes ballet and tap shoes; cleated or spiked athletic shoes; gloves, including, but not limited to, baseball, bowling, boxing, hockey, and golf; goggles; hand and elbow guards; life preservers and vests; mouth guards; roller and ice skates; shin guards; shoulder pads; ski boots; waders; and wetsuits and fins.

• Belt buckles sold separately.

• Costume masks sold separately.

• Patches and emblems sold separately.

So you can see how complex the rules can become when you really study them.  A pair of running shoes or cross trainers priced below $75 is exempt from sales tax, but a pair of soccer cleats would be taxable.  I would not want to have to program the tax calculation into the computer system for a retailer during this brief tax exempt period!

The sales tax holiday applies to catalog and internet purchases of the same items. So, if you are out of town on that last vacation before the kids return to school, you can still take advantage of the sales tax relief.

As an accountant who is always looking to save money, I use this sales tax holiday to refresh parts of my own personal wardrobe including socks, underwear, polo shirts and pants. I recognize that this sales tax holiday is intended to assist parents with school supplies and clothing for children, but the law does allow any clothing items priced $75 or less to qualify so I view this as a savings opportunity for myself as well.

Paul Pahoresky is the owner of PRP & Associates.  He can be reached at 440-974-1040 extension 214 or at paul@prpassoc.com. Consult your tax advisor for your specific situation for additional information and guidance on these topics.