Recently the Ohio Legislature passed a measure that called for the sales tax holiday that occurred in 2015 to happen again in 2016. Many legislators and organizations throughout the state are praising the decision.
According to the Ohio Council of Retail Merchants, Governor John Kasich signedSenate Bill 264 last week creating Ohio’s 2016 sales tax holiday this Aug. 5-7. Senate Bill 264 waives state and local sales tax for clothing $75 per item or under and school supplies and instructional materials $20 per item or under.
Jason Kester, executive Director of the Southern Ohio Port Authority said there’s positive and negative aspects of the sales tax holiday.
Kester said some of the positive aspects of the tax holiday include, allowing families to purchase school supplies and related items at a lower cost and it helps parents stretch their school supply budgets further. He said the negative aspect of the tax holiday, would result is less sales tax revenue for the county.
Scioto County received $1.03 million in sales tax for the month of August 2015 and $1.08 million in sales tax for the month of August 2014.
According to a University of Cincinnati Economic Research Center study, Ohio’s August 2015 sales tax holiday boosted Ohio sales tax revenues by $4.7 million while saving Ohio consumers $3.3 million in taxes.
According to the study, “Overall retail sales in Ohio increased 6.48 percent in August 2015. The three day holiday period from August 7-9, 2015 generated a gross increase in sales tax collections of about nine percent. The state of Ohio experienced an increase of about $8 million in sales tax collections while foregoing taxes of $3.3 million on exempted goods during the sales tax holiday. The state is estimated to have collected sales tax of $100 million during this three-day period.
Gordon Gough, President and CEO of the Ohio Council of Retail Merchants praised the passage of Senate Bill 264.
“Last year’s event was a tremendous success. We are confident this year’s event will be just as successful, if not better. We also thank the bill’s lead sponsor State Senator Kevin Bacon and the leaders and entire membership of the Ohio General Assembly for extending this valuable benefit to Ohio’s families, taxpayers and economy,” Gough said.
According to released information from Bacon’s office, Senate Bill 264 was written to extend the sales tax holiday to online retailers. The online retailers will waive the collection of state and local sales taxes on eligible items during the sales tax holiday.
Wayne Allen can be reached at 740-353-3101 ext. 1933 or @Wayneallenpdt on Twitter