Valley man persists in pursuit of tax holiday for school items

Supporters say the plan would provide a boost for retail sales in Ohio.

COLUMBUS — A Poland man is continuing his efforts to persuade lawmakers to enact a sales-tax holiday to allow consumers to save money on school supplies and related items.

Bill Johnson was back in Columbus this week, meeting with a couple of potential sponsors for his proposed legislation, which he hopes will be introduced in coming weeks.

“We’re very, very close, we believe, to having the bill ready to be introduced,” he said. “We’ve got the draft language almost put together. ... Things are moving right along, and we’re very, very optimistic.”

Earlier this year, Johnson established the Ohio Sales Tax Reform Incentive and a related Web site — ohiosalestaxreformincentive.org — to draw attention to the benefit of sales-tax holidays.

Other states offer the days, allowing consumers to buy clothing, school supplies and other items without paying sales tax. Sixteen states have established sales-tax holidays, and others are considering them, Johnson said.

Tax-holiday legislation has been introduced at the Ohio Statehouse in past years, but the bills have not gained enough support to pass. Opponents often focus on lost revenues, saying sales-tax collections are reduced, negatively affecting state services.

And a recent study by the Tax Foundation, a national nonprofit organization that researches tax-related issues, stated that sales-tax holidays “are nothing more than political gimmicks that do little to help consumers.”

But Johnson said tax-free days would be a boon for the state, increasing sales for retailers and potentially prompting consumers to spend more on nonexempt items.

“Between the increased buying power, they channel those savings into other things that they don’t have to have,” he said. “The economic effect of this is phenomenal.”

Johnson is hoping the state will adopt a three-day holiday in early August, the traditional kickoff of the school-shopping season. Another holiday could be established in early December, in time for holiday sales and new school semesters.

School supplies, clothing, shoes, sporting goods and some computers would be covered.

Senate President Bill Harris, a Republican from Ashland, is supportive of the idea of sales-tax holidays.

“I would say that right now, with school starting, if we were going to do one, it would be a great time for one,” he said.

But Harris was cautious about legislation on the issue, given the economic realities facing the state.

“I’m very concerned about where our budget is and where our revenue’s at,” Harris said. “I think there’s a potential to structure [a sales-tax holiday] in a way that would help maximize [and] certainly stimulate retail traffic and would be good for our economy.”

Johnson is hopeful the legislation will be passed in time for back-to-school shopping in 2010.