Ohio’s sales tax holiday arrives Friday; families expected to spend more than last year

Renaissance Fine Art Supplies in downtown Hamilton offers a wide variety of art supplies including colored pencils, paints, pens, brushes and more. NICK GRAHAM/FILE PHOTO

Renaissance Fine Art Supplies in downtown Hamilton offers a wide variety of art supplies including colored pencils, paints, pens, brushes and more. NICK GRAHAM/FILE PHOTO

Ohio’s sales tax holiday on school supplies, instructional material and clothes is just around the corner at a time when inflation concerns are causing families to closely watch their spending, but some consumers are getting in their shopping in advance.

This year’s installment starts at 12 a.m. Friday and continues through 11:59 p.m. on Sunday. Exempt from sales and use tax during the holiday are items of clothing priced at $75 or less, items of school supplies priced at $20 or less and items of school instructional materials priced at $20 or less, according to the Ohio Department of Taxation.

With rising inflation continuing to takes its tolls on consumers’ finances, 38% of respondents them said they are cutting back in other spending areas to cover the cost of items for the upcoming school year, according to an annual survey released this month by the National Retail Federation and Prosper Insights & Analytics. Officials said that makes the tax holiday even more important this year.

Consumers expect to spend record amounts on both K-12 and college supplies because of higher prices, according to the survey.

Families with children in elementary through high school plan to spend an average of $864 on school items, up from $849 in 2021, according to the survey. Total back-to-school spending is expected to reach a record $36.9 billion, up from $37.1 billion last year and an all-time high in the survey’s history.

The survey also found college students and their families plan to spend an average of $1,199 on college or university items, which was in line with what they said they would spend last year$1,200. Total back-to-college spending is expected to reach a record $73.9 billion, up from $71 billion in 2021.

Shoppers are covering the cost of back-to-school and college this year by cutting back in other areas (38%), working overtime or taking on additional hours (18%), using buy now, pay later (17%), taking out additional credit cards (14%) and borrowing money or going into debt (12%).

Some shoppers were out before the tax holiday. Natalie Folino, of Clearcreek Twp., shopped at the Walmart on Wilmington Pike in Sugarcreek Twp. on Thursday with her three daughters, ages 9, 7 and 6, to pick up school supplies for the upcoming school year at Waynesville schools ahead of the tax holiday weekend.

“I guess if you plan to get your back to school shopping done during that time, that would be a really good savings,” Folino said. “We ended up spending quite a bit today, so I’m sure that would have helped.

“Right now, I think things are definitely more expensive and an opportunity like that would be a big help, especially if you’re shopping for multiple kids for back to school.”

But Kate Mossop, of Beavercreek, who went shopping at Walmart on Thursday with her 7-year-old daughter, said she avoids shopping the tax holiday weekend.

“Honestly, I feel like you don’t really save that much and I don’t really like having to reach over people and be in the crowds to have to save a couple of bucks,” Mossop said. “For me, it’s not worth the stress. I like to go early to have that peace of mind that that’s already checked off my list.”

Mossop said shopping before the tax holiday weekend also helps her more easily find items that might sell out as a result of larger crowds that the tax holiday may generate.

The annual sales tax holiday weekend started in 2015 and was made permanent in 2018 by the Ohio General Assembly.

The Ohio Department of Taxation attempts to answers consumers’ frequently asked questions on via its website, tax.ohio.gov, according to Gary Gudmundson, spokesman for the department.

“For instance ... there’s this $75 limit on clothing,” Gudmundsn said. “Let’s say you find something that costs $80. Do I get $75 exempt from tax on that? No. It has to be $75 or less.”

Gudmundson said it’s not only items sold in brick-and-mortar locations that qualify for the tax exemptions. Products sold by internet, email, postal mail and phone also qualify.

“Anything purchased during the time period, wherever the source of the retailer is, would be eligible for the sales tax exemption,” he said.

Items used in a trade or business deal are not exempt under the sales tax holiday. Also not eligible are items like clothing accessories; patches and protective equipment; sewing or knitting materials; and sports equipment,; and plus belt buckles, costume masks, patches and emblems sold separately.

Lora Miller, Ohio Council of Retail Merchants’ director of governmental affairs and public relations, said consumers benefit greatly from the tax holiday weekend because “in this kind of (economic) environment ... every penny counts.”

“Consumers are so price-sensitive, more so now than in past years,” Miller said. “It makes them feel better to save money, especially when it comes to taxes.”

It also will help Ohio businesses, which will put needed items that are not subject to the tax holiday up for sale, she said.

Deals like that, along with the tax holiday on school supplies and clothing, draw benefit the state coffers, drawing shoppers from areas that don’t have such a respite from taxes, including Indiana, Kentucky, Michigan and West Virginia, Miller said. Pennsylvania doesn’t have a sales tax holiday, but it also doesn’t have a sales tax on clothing, she said.

The increase in commercial activity caused by the tax holiday helps offset any losses from the temporary lack of taxes, Miller said.

Consumers expect to spend record amounts on both K-12 and college supplies because of higher prices, according to the survey.

Families with children in elementary through high school plan to spend an average of $864 on school items, up from $849 in 2021, according to the survey. Total back-to-school spending is expected to reach a record $36.9 billion, up from $37.1 billion last year and an all-time high in the survey’s history.

The survey also found college students and their families plan to spend an average of $1,199 on college or university items, which was in line with what they said they would spend last year$1,200. Total back-to-college spending is expected to reach a record $73.9 billion, up from $71 billion in 2021.

Shoppers are covering the cost of back-to-school and college this year by cutting back in other areas (38%), working overtime or taking on additional hours (18%), using buy now, pay later (17%), taking out additional credit cards (14%) and borrowing money or going into debt (12%).

“Families consider back-to-school and college items as an essential category, and they are taking whatever steps they can, including cutting back on discretionary spending, shopping sales and buying store- or off-brand items, in order to purchase what they need for the upcoming school year,” NRF President and CEO Matthew Shay said in a statement. “The back-to-school season is among the most significant shopping events for consumers and retailers alike, second only to the winter holiday season.”

School start dates

Aug. 10: Warren County Career Center

Aug. 11: Middletown (grades 1-8, last names A-L, HS freshman orientation), Butler Tech

Aug. 12: Middletown (grades 1-8, last names M-Z, HS grades 11-12)

Aug. 15: Hamilton (last names A-K), Middletown (all), Ross, Mason (last names A-L)

Aug. 16: Fairfield, Franklin, Madison, Talawanda (grades 2-12), Springboro, Mason (last names M-Z), Lakota (last names A-L)

Aug. 17: Hamilton (last names L-Z), New Miami, Carlisle, Eaton, Lebanon, Lakota (last names M-Z), New Lebanon, Pathway School of Discovery, Preble Shawnee, Mason (all), Kings (no K), Monroe

Aug. 18: National Trail, Lakota (all students 1-12)

Aug. 19: Talawanda (grades K-1 begin)

Aug. 22: Kings (kindergartners begin)

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