When is it? Ohio S. B. 243 states that the holiday starts on Friday, August 7, 2015 at 12:01 a.m. and ends on Sunday, August 9, 2015 at 11:59 p.m.

What is exempt from sales tax? The following items will be exempt from Ohio sales and use tax:

• Clothing priced at $75 per item or less;
• School supplies priced at $20 per item or less; and
• School instructional material priced at $20 per item or less.

Where? All Ohio stores and online retailers

What qualifies as “clothing”?  The definitions for clothing is pretty broad–pretty much anything one would wear, including shoes, are considered clothing.  There are some exceptions; most notably accessories (jewelry, bags, hairbows, etc.); protective equipment (face masks, helmets, protective gloves, etc.) and sporting equipment (cleats, dance shoes, skates, protective gear).   See all the official inclusions and exclusions here.

What qualifies as “school supplies”?  This category is pretty specific–it covers most of what you’d need, but be aware that anything not on the following list will be considered taxable:
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.

Be aware that pricier items like graphing calculators will be above the $20-per item threshold and will notbe tax exempt.  Also be aware that back-to-school things like dorm furnishings and locker decor won’t make the cut either.

What qualifies as “school instructional material”?  This is the smallest category, and includes only the following: reference books, reference maps and globes, textbooks, and workbooks.  So if you’re a homeschooler and you were looking forward to a tax break on your curriculum for the year, remember that price threshold of $20 or less.  If you’re buying individual workbooks under that price point, you’ll get the exemption, but if it’s a whole set priced at over $20, it will not qualify.

How will online shopping work?  Orders made and accepted online from Ohio businesses during the sales tax holiday will qualify for the tax exemption, even if they ship after the holiday ends.  Only qualifying items will be exempt–shipping & handling or other items won’t count for tax exemption.

How will coupons or discounts work?  If an item is over the $75 or $20 threshold, and a store coupon brings it below the threshold, then the item will qualify for tax exemption (for instance, if a clothing item at Kohl’s is priced at $80, but you use a 20% off coupon, that item will be $64 and should qualify).  If you have a coupon where the retailer is reimbursed by a third party (manufacturer’s coupon), then that coupondoes not affect the tax exempt status.  So if a school supply item was $22 and you had a $3 manufacturer’s coupon, the item would still not qualify (I doubt the manufacturer’s coupon situation will apply very often, but I wanted you to be aware!).

 

Have more questions about the Sales Tax Holiday in Ohio?  Get more answers on their FAQ page. 

August 7-9:
Alabama
New Mexico
Ohio
Oklahoma
South Carolina
Tennessee
Texas
Virginia

August 7-8:
Iowa
Louisiana

August 9-15:
Maryland

August 15-16:
Massachusetts

August 16 – 22:
Connecticut