Overview: Ohio’s Sales Tax Holiday for 2025 will be held from 12:00 a.m. on Friday, August 1, 2025, to 11:59 p.m. on Thursday, August 14, 2025.

Eligible Items: The sales tax holiday exempts the following from Ohio’s sales tax:

1. Tangible Personal Property:
   • Items priced at $500 or less per item.
   • Includes a wide range of products such as clothing, electronics, home goods, school and office supplies, sports equipment, toys, personal care products, and soft drinks.

Exclusions: Certain items are not eligible for the sales tax holiday:

• Non-Eligible Items: Items over $500, watercraft or outboard motors requiring titling, motor vehicles, alcoholic beverages, tobacco products, vapor products, and marijuana-related items.
• Services: The exemption does not apply to services, although certain repair or installation services may be exempt if the parts and service are separately itemized and the parts are $500 or less.

Special Considerations:

1. Multiple Purchases:
   • There is no limit on the total purchase amount, but each item must individually meet the $500 threshold to be exempt.
2. Price Thresholds:
   • The exemption applies only to items selling for $500 or less. Items priced above this threshold are fully taxable.
3. Sales and Discounts:
   • Discounts, including coupons, that reduce the price of an eligible item to $500 or less qualify for the exemption. However, the exemption is based on the price of each item, not averaged prices or promotional offers.
4. Layaway and Rain Checks:
   • Items placed on layaway or purchased with a rain check during the holiday are exempt if they meet the criteria. Rebates do not affect the exemption eligibility as they are applied post-purchase.
5. Online and Mail Orders:
   • Orders made via mail, telephone, e-mail, or online qualify for the exemption if the order is placed and paid for during the holiday, even if delivery occurs afterward.
6. Shipping and Handling:
   • Shipping and handling charges are exempt if all items in the shipment are eligible. If both exempt and taxable items are included, the charges should be allocated proportionally.
7. Exchanges and Returns:
   • Sales tax should not be charged on exchanges of eligible items made during the holiday. Returns of exempt items for different items will be taxed according to the new item’s eligibility.

Retailer and Consumer Guidelines:

• Retailer Compliance: Retailers must adjust their point-of-sale systems to apply the tax exemption correctly and must report exempt sales accurately.
• Consumer Refunds: Consumers who were incorrectly charged sales tax on exempt items during the holiday should seek a refund from the retailer.

Administrative Details:

• Reporting: Retailers must report exempt sales on the Ohio Sales and Use Tax Return (form UST-1), distinguishing between taxable and exempt sales.
• Reimbursement: There is no reimbursement for costs associated with adjusting point-of-sale equipment.

Conclusion: Ohio’s Sales Tax Holiday from August 1-14, 2025, offers significant savings for consumers on a wide range of eligible items. By exempting qualifying purchases from sales tax, the initiative supports financial relief for families and promotes retail spending. Retailers and consumers should be aware of the detailed guidelines to ensure proper application of the tax exemptions and compliance with state regulations.