COLUMBUS – Ohio’s sales tax holiday will be back for a third go-around if Gov. John Kasich signs the bill passed by the state Senate Wednesday into law.
The holiday, in its third year, is three days when shoppers can buy back-to-school items – even if they’re not going back to school – without paying the state or local sales taxes.
This year’s tax-free weekend will be August 4-6, just as parents are flocking to store to buy new clothes and school supplies.
The exemptions applies to clothing items priced up to $75 apiece, school supplies like crayons, book bags and pencils up to $20 and instructional materials like textbooks and workbooks up to $20 each.
The price limits apply per item, so shoppers can buy as many items under the price limit as they wish, either online or in stores.
Supporters of the tax holiday say it boosts retail sales while giving taxpayers a break but detractors argue that it is more likely to help wealthier taxpayers who can shift the timing of purchases and also deprives the state of tax revenue.
Ohio families saved $3.3 million during the state’s first temporary sales tax holiday in August 2015, while generating $4.7 million in sales tax revenue, according to a report at cleveland.com.
Ohio was one of 17 states to host a sales tax holiday last year.
The average family with school-age children planned to spend an estimated $673 on back-to-school supplies and clothing in 2016, according to the National Retail Federation.