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Ohio’s back-to-school sales tax holiday becomes permanent

Ohio Gov. John Kasich on Friday signed a bill to make the state’s popular sales tax holiday permanent.

Related: Ohioans to get sales tax holiday in August

For the past three years, Ohio shoppers have been granted relief from paying sales taxes on clothing items up to $75 each and on school supplies worth up to $20 per item, such as book bags and notebooks.

The state expects to lose $16.3 million a year on the holiday while local governments and libraries will likely forgo $600,000 a year and transit authorities will lose $4.1 million a year in tax revenues, according to the Legislative Service Commission analysis.

State Sen. Kevin Bacon, R-Minerva, who sponsored the bill, maintained that previous sales tax holidays provided economic stimulus that allowed the state to break even or increase tax revenues.

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Sales tax rates vary by county and range from 6.5 percent to 8 percent, according to the Ohio Department of Taxation.

Related: Eyeglasses may be exempt from sales tax

The back-to-school sales tax holiday will take place on the first Friday, Saturday and Sunday of August.

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