Sales tax revenues up on sales-tax holiday from purchases of non-exempt items

COLUMBUS

Ohio’s inaugural back-to-school, sales-tax holiday boosted sales-tax collections by $4.7 million, according to a study released by the University of Cincinnati’s Economic Center.

The group also said consumers saved $3.3 million during the August event.

Julie Heath, Economics Center director, told Ohio Senate’s Ways and Means Committee this week “the strength of the positive effect of the sales tax holiday on tax revenues” was surprising, and, “We do not know if the trend will continue. It could be the case that consumers experienced an ‘exuberance’ of sorts in this first year, and subsequent years will be characterized by a more educated, experienced consumer.”

But, she added, “On the other hand, as consumers become more accustomed to the sales-tax holiday, it could take on a Black Friday aspect, representing an anticipated event, continuing to drive additional sales on non-exempt items and pulling customers from surrounding states.”

Read more about the event in Saturday's Vindicator or on Vindy.com.