Getting ready for the school year
Ohio and West Virginia are preparing to welcome back-to-school shoppers with sales tax holidays.
And while residents of both states have become accustomed to that yearly break as they prepare to send their children back to the classrooms, Ohioans will see one big change: This year’s tax holiday has been expanded, and will run from midnight Aug. 1 through 11:59 p.m. Aug. 14. That’s two weeks for families to take advantage of tax-free purchases — made in-person or online — of eligible items up to $500.
West Virginians, meanwhile, will get their sales tax holiday from midnight Aug. 1 through 11:59 p.m. Aug. 4. The exemption in the Mountain State will be limited to certain items of clothing costing $125 or less; certain computers with a purchase price of $500 or less; school instruction material with a price of $20 or less; certain school supplies with a purchase price of $50 or less; and certain sports equipment with a price of $150 or less. Like Ohio, the exemption will apply to in-person and online purchases.
“The timing of this year’s sales tax holiday not only supports families preparing for back-to-school, but also provides relief on other important household needs, Ohio Gov. Mike DeWine said in June while announcing the expanded period.
Ohio’s exemption applies to all eligible items priced up to $500 and purchased either in-person or online.
Those of you hoping the exemption will apply to services, watercraft, outboard motors, motor vehicles, alcoholic beverages, tobacco, vapor products or any item that contains marijuana are out of luck, however.
While the policy is perhaps meant to aid lower-income families looking to get the most out of their back-to-school budgets, the truth is everyone can take advantage of the savings. Even better, the 14-day holiday in Ohio will provide an expanded opportunity to shop for school items at many of the area’s local small businesses — and that will give them a boost, as well.
Pennsylvania does not have a tax holiday, but it’s worth noting that the commonwealth does not charge state sales tax on clothing items, textbooks and select computer services all year round.
While most consumers are happy with the always-appreciated break tax holidays bring, they are not universally regarded as a good thing. According to the Institute of Taxation and Economic Policy, sales tax holidays combined will cost states $1.3 billion in lost revenue. The holidays also benefit wealthier taxpayers, the Washington, D.C.-based nonprofit, nonpartisan tax policy organization adds, since they have more flexibility to shift their purchases to take advantage of the tax break.
Estimates are that in 2024, the holiday cost government in Ohio $750 million in sales tax revenue. However, the Statehouse News Bureau reported that the actual impact was lower than anticipated.
The West Virginia Tax Division, meanwhile, estimated that the 2023 tax holiday cost the state $4.5 million.
Those questions will, no doubt, continue to be debated. In the meantime, Tri-State Area residents should not lose sight of the opportunity they have to take advantage of some welcome out-of-pocket relief.