Ohio shoppers may get another break from sales taxes applied to school supplies for three days in early August.
The Ohio Senate voted 32-1 in favor of a bill that would create “sales tax holiday” this year for clothing, school supplies and instructional materials for Aug. 4, 5 and 6. Similar exemptions were granted in August 2015 and 2016.
The exemption would apply to articles of clothing up to $75 each and not include business or trade attire or sports or protective equipment. The cap on school supplies — book bags, notebooks, crayons and other items — would be $20 per item in value.
The tax holiday is expected to cost the state, libraries and local governments $18.9 million in lost revenues, according to a fiscal analysis from the Legislative Service Commission.
The tax holiday is supported by major retailers such as Walmart, Kohl’s and JCPenney.
Lora Miller of the Ohio Council of Retail Merchants said in written testimony thatthe 2015 sales tax holiday saw more than $46 million in sales on eligible goods — more than what would have occurred without the exemptions.
“From all accounts, Ohio’s 2015 sales tax holiday was a tremendous success for consumers, retailers and the state of Ohio,” Miller said.
Ohio is among 18 states that offer back-to-school sales tax holidays. The bill now heads to the Ohio House for consideration.
Source: Dayton Daily News