What to know in 2021

FAQs: Everything you need to know for Ohio tax-free weekend 2021

Updated: 7:45 AM EDT Aug 6, 2021

Get ready, shoppers. Ohio’s back-to-school sales tax-free holiday is back this weekend.From 12 a.m. Aug. 6 through 11:59 p.m. Aug. 8, the state of Ohio will charge no sales tax on several items.The following items are exempt from sales and use tax:Clothing priced at $75 per item or lessSchool supplies priced at $20 per item or lessSchool instructional material priced at $20 per item or lessThere is no limit to how many tax-exempt items you can buy.Items used in a trade or business are not exempt under the sales tax holiday.Cincinnati-based Geyer Instructional Products sells school, STEM and classroom materials and says it hopes the weekend exemption for its products can help families and teachers ease back in to the classroom."Some people are going to school for the very first time in over a year and a half," Geyer Director of Operation Brett Schwartz said. "So we want to make this as easy as possible for everyone out there."Kentucky and Indiana are not offering tax-free holiday weekends in 2021.Below, we'll attempt to answer several of your questions about the weekend shopping event, including which items apply and which do not. Can multiple qualifying items be purchased in a single tax-exempt transaction? For example, would the purchase of two shirts, two pairs of pants, a pair of shoes and a jacket (each item costing $50, total purchase $300) be tax-exempt? There is no limit on the amount of the total purchase. The qualification is determined item by item.What items of clothing qualify?“Clothing” is defined as all human wearing apparel suitable for general use, according to the Ohio Department of Taxation. “Clothing” includes, but is not limited to, shirts; blouses; sweaters; pants; shorts; skirts; dresses; uniforms (athletic and nonathletic); shoes and shoelaces; insoles for shoes; sneakers; sandals; boots; overshoes; slippers; steel-toed shoes; underwear; socks and stockings; hosiery; pantyhose; footlets; coats and jackets; rainwear; gloves and mittens for general use; hats and caps; ear muffs; belts and suspenders; neckties; scarves; aprons (household and shop); lab coats; athletic supporters; bathing suits and caps; beach capes and coats; costumes; baby receiving blankets; diapers, children and adult, including disposable diapers; rubber pants; garters and garter belts; girdles; formal wear; and wedding apparel.What is not included under the definition of clothing? 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; sunglasses (non-prescription); umbrellas; wallets; watches; and wigs and hairpieces.Protective equipment. Protective equipment includes: breathing masks; cleanroom apparel and equipment; ear and hearing protectors; face shields; hard hats; helmets; paint or dust respirators; protective gloves; safety glasses and goggles; safety belts; tool belts; and welders gloves and masks.Sewing equipment and supplies including, but not limited to, knitting needles, patterns, pins, scissors, sewing machines, sewing needles, tape measures, and thimbles; and sewing materials that become part of “clothing” including, but not limited to, buttons, fabric, lace, thread, yarn, and zippers.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.Does the $75 exemption apply to the first $75 of an item of clothing? In other words, if the selling price of an item of clothing is $80, is the first $75 exempt from sales tax? No. The exemption applies to items selling for $75 or less. If an item of clothing sells for more than $75, tax is due on the entire selling price.What types of items qualify as school supplies? According to the Ohio Department of Taxation, “school supplies” include only the following items: binders; book bags; calculators; cellophane tape; blackboard chalk; compasses; composition books; crayons; erasers; folders (expandable, pocket, plastic, and manila); glue, paste, and paste sticks; highlighters; index cards; index card boxes; legal pads; lunch boxes; markers; notebooks; paper; loose leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, and construction paper; pencil boxes and other school supply boxes; pencil sharpeners; pencils; pens; protractors; rulers; scissors; and writing tablets.What types of items qualify as school instructional material? “School instructional material” includes only the following items: reference books, reference maps and globes, textbooks, and workbooks.Items not included in this list are taxable. “School instructional material” does not include any material purchased for use in a trade or business.What about buy one, get one free or items sold for a reduced price? The total price of items advertised as “buy one, get one free” or “buy one for a reduced price” cannot be averaged to qualify both items for the exemption. The exemption depends on the actual price paid for each item. For example, if a consumer buys one clothing item at $80 and receives another item for free, the purchase would be subject to sales tax.What about coupons and discounts? How are they handled? If a retailer offers a discount to reduce the price of an eligible item to $20 (applies to school supplies) or less or $75 (applies to clothing) or less, the item will qualify for the exemption. This applies to all discounts even if a retailer’s coupon or loyalty card is required to secure the discount. If a retailer accepts a coupon that entitles the retailer to third-party reimbursements, such as a manufacturer’s coupon, the discount provided by the coupon does not reduce the item’s sales price for purposes of determining whether the item is eligible for the exemption.Does the exemption apply to repairs, alterations or items for rent? The exemption does not apply to taxable services, such as alterations performed on clothing, accessories, or footwear, or to any rental costs.Does it apply to mail, phone, or internet orders? Qualified items sold to consumers by mail, telephone, e-mail, or Internet shall qualify for the sales tax exemption if the consumer orders and pays for the item and the retailer accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period. However, if the order and payment were made before the sales tax holiday, even if the item was delivered during the sales tax holiday, it would not qualify for the exemption. Additionally, if an item is back ordered and payment does not occur until a later shipment, the item would not qualify for the exemption.Does the exemption apply to shipping and handling charges? If all items in a shipment qualify as eligible items and the sales price for each is within the sales tax holiday price threshold, the shipping and handling charges are not taxable.If the shipment includes exempt items and taxable items (including an eligible item with a sales price in excess of $20 (school supplies)/$75 (clothing)), the seller should allocate the shipping and handling charges by a percentage based on the total price of the taxable items to the total price of all the items in the shipment. The retailer must charge tax on the portion of the shipping and handling charges allocated to the taxable items in the shipment.How will retailers handle exchanges or returns? If a consumer buys an eligible item during the sales tax holiday and later exchanges it for the same item in a different size or color, the retailer should not charge sales tax even if the exchange is made after the end of the sales tax holiday.If a consumer buys an eligible item during the sales tax holiday and returns the item after the tax holiday period for credit on the purchase of a different item, the retailer must charge sales tax on the sale of the newly purchased item, even if it would have been eligible for the exemption during the sales tax holiday.If a consumer buys an eligible item before the holiday period, but returns the item during the sales tax holiday period and receives credit on the purchase of a different item of eligible property, no sales tax is due on the sale of the new item. The retailer must provide the consumer credit for both the purchase price and sales tax paid on the item being returned.How should retailers handle refunds? Retailers should refund tax to any consumer who was charged sales tax on an exempt item during the sales tax holiday. Consumers who were charged tax by a retailer should take their receipt to the retailer for a refund.Can a vendor choose not to participate in the sales tax holiday? No. The sales tax holiday is set by law and vendors must comply.