COLUMBUS – A measure that would make Ohio’s annual back-to-school sales tax holiday permanent was approved by the Senate, though previous attempts have been unsuccessful.
The bill, sponsored by Sen. Kevin Bacon (R-Westerville), provides a three-day sales and use tax exemption for customers purchasing certain retail items during the first Friday, Saturday and Sunday in August when many parents are picking up supplies for the news school year.
“Ohio’s Sales Tax Holiday proved to be a win-win for parents, students and businesses alike,” Bacon said. “It’s important that we permanently extend this savings event to ensure families benefit for years to come.”
Back-to-school spending was expected to hit an all-time high of $83.6 million in 2017, according to forecasts from the National Retail Federation.
Critics of the sales-tax holiday say it reduces the state’s tax revenue while doing very little to help businesses or consumers, who merely change their shopping habits rather than spend more money.
Under Bacon’s bill, the saving savings would apply to items of clothing priced at $75 or less, commonly used school supplies— such as crayons, book bags and pencils— and school instructional materials like textbooks and workbooks priced at $20 or less. The price limits apply per item, so consumers can buy as many tax-exempt items under the price limit as they wish, either online or in stores, Bacon said.
Ohio lawmakers have approved a one-time sales tax holiday each year since 2015 and was one of 17 states to host a tax holiday last year.