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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 Tuesday through 11:59 p.m. Aug. 8. That's a week and a half 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 Friday through 11:59 p.m. Aug. 5. 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.
"Ohio's sales tax holiday, historically, has been meant to help families buy clothing and school supplies for the upcoming school year," Gov. Mike DeWine said in June while announcing the expanded period. "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."
Changes in Ohio this year include an increase in the purchase price limits for items -- it will now apply 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 10-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 scheduled for this year, 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 Bailey Williams, a tax policy researcher at Policy Matters Ohio, a nonprofit policy research institute with offices in Cleveland and Columbus, the price tag for this year's tax holiday in Ohio will be $740 million. Williams, in a July 19 op-ed titled "Ohio needs to take a permanent break from the sales tax holiday" that appeared on Cleveland.com, argued that a sales tax credit would better serve the state and its residents.
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.