Families looking to save money as they head back to school will want to plan their shopping during the state’s annual sales tax holiday — this year expanded to 10 days and including more items than ever before.
Gov. Mike DeWine announced the 2024 expanded sales tax holiday will take place from 12 a.m. Tuesday through 11:59 p.m. Aug. 8.
In conjunction with the Ohio General Assembly, Mr. DeWine expanded the event’s length to 10 days and will allow tax-free purchases made in person or online on all eligible items of up to $500.
Previous sales tax holidays ran three days, included only school-related items, and offered much lower purchase price limits of $75 maximum on an item of clothing, and $20 per item of instructional material and school supplies.
“Ohio’s sales tax holiday, historically, has been meant to help families buy clothing and school supplies for the upcoming school year,” said Governor DeWine. “This expanded sales tax break will help Ohio’s families with back-to-school necessities as well as other substantial purchases during a time when so many household budgets are being strained.”
This year’s sales tax holiday allows tax-free purchases made in-person or online. It does not include an exemption from sales tax for services or any purchase of watercraft, outboard motors, motor vehicles, alcoholic beverages, tobacco, vapor products, or any item that contains marijuana.
Under Ohio law, food is taxable if it is consumed on the premises where it is sold. This year, according to the Ohio Department of Taxation website, you can eat at restaurants tax-free as long as every item ordered is priced below $500.
Lora L. Miller, director of governmental affairs and public relations for the Ohio Council of Retail Merchants, said the tax holiday is very important to families, especially now.
“It is critical for families who do not have an unlimited amount of resources to spend on clothing, shoes, and school supplies,” Ms. Miller said. “Every dollar is important, and this could save people thousands.”
Ms. Miller said the council was on the front line pushing for the tax holiday when it was finally passed in 2014. The council has been pushing to have it expanded in the last few years as well.
“It is actually pretty broad this year,” she said. “It used to be just clothing and shoes covered under the holiday. Now it includes anything up to $500. You can actually buy new tires as long as they are under $500 apiece and itemized as such. You can also go to restaurants and eat in as well.”
Ms. Miller said the council held a webinar for its members last week to inform them of the changes and allow them to work on advertising and sales.
“Our members usually take advantage of the holiday, mark down items, and have sales just for this occasion,” Ms. Miller said. “They really want to help consumers, and it behooves them to have the sales people are looking for.”
Back-to-school shopping is expected to cost an average of $605 per child this year, and 54 percent of families will spend more than last year. Those are among the key findings from Savings.com’s annual research on back-to-school shopping.
According to Savings.com, parents said they will spend from $494 for elementary students to $780 for high schoolers on new school clothing and supplies, or $605 on average. Clothing will be the most significant back-to-school expense at around $231 per child. More than 40 percent of families will postpone or skip school supply purchases because of cost concerns.
Melissa Johnson, manager of the Schoolbelles uniform store in Toledo, said she really did not know how to prepare for this year’s tax holiday.
“We are not sure about this year’s holiday since it has been expanded to 10 days,” Ms. Johnson said. “We are not sure how it is going to go. Do people even know it is 10 days?”
Ms. Johnson said in the past, the tax holiday was three of the 10 busiest days of the year for the store.
“Typically it gets insane here during the three days,” she said. “Our other busiest days are the week just before school starts. We will have to see how this holiday turns out. I have scheduled more people and added extra shifts for those days.”'
Moussa Salloukh, chef owner of Souk Mediterranean Kitchen and Bar in Toledo Warehouse District, was surprised when he heard restaurants are included in the tax holiday.
“No, I did not know that. That is huge,” Mr. Salloukh said. “It will be very good for business, and we will be ready for it.”
Mr. Salloukh said the restaurant is typically very busy but will be able to handle the extra business.
“I have 120 seats inside and another 70 seats on our patio,” he said. “I knew nothing about this, but it will be amazing.”
Some families have already begun purchasing back to school clothes and supplies prior to the holiday, but said they will also take advantage of the sales and promotions during the holiday.
Amanda Booth of Sylvania said she has purchased some school clothing already but is waiting to get the rest during the tax free holiday.
“I already bought a lot of their stuff from Target, but the rest of the stuff I’m going to wait for the tax free week,” Ms. Booth said. “I normally end up buying school clothes during the tax-free holiday because it saves me a lot of money.”
Lisa Waldren of Toledo is waiting for the tax holiday to get what her two teenagers need.
“With two teens I have to get not only clothes, but the school supplies as well,” Ms. Waldren said. “Teens have to have the latest of everything and that can add up quickly. The tax holiday always saves me money in the long run, even if the stores are crowded.”
Nicole Losek of Maumee said she typically does not wait to get everything her son needs for school.
“I don’t wait for the tax free holiday because his school doesn't give us the list until a week before school starts,” Ms. Losek said. “I have to jump through hoops to get his list completed. Otherwise I end up getting stuff he doesn't need.”
Ms. Losek said she has purchased some things during the holiday in the past.
“I will be getting clothes, shoes, and a book bag,” she said. “I have saved around $40 in the past, which helps.”
For more information, go to tax.ohio.gov .
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