Ohio Senate OK’s sales-tax holiday bill

By Marc Kovac

news@vindy.com

COLUMBUS

The Ohio Senate approved legislation to allow another three-day sales-tax holiday before the start of the next school year.

Senate Bill 264 was amended Tuesday from its original form, which sought to make the holiday a permanent event. Senators instead opted for a one-year extension.

The legislation passed on a vote of 31-1 and heads to the Ohio House for further consideration. Backers say the bill would have to be passed in April in order to take effect for the planned August holiday.

Ohio’s first sales-tax holiday took place last August, exempting sales taxes on individual clothing items priced up to $75 and individual school supplies and instructional materials up to $20, whether purchased in stores or through online retailers.

The exemption did not cover computers and other electronics, sports equipment or higher-priced clothing and supplies.

SB 264 retains the provisions of the original sales-tax holiday, setting a new three-day holiday for Aug. 5-7 of this year.

“It’s identical to the bill we passed last year,” said Sen. Kevin Bacon, R-Columbus, a Defiance native and primary co-sponsor of the bill. “I think you’re going to see really good results again this year.”

About 17 other states have comparable sales-tax holidays in place, most with limits similar to Ohio’s.

Opponents have focused on the resulting lost revenues, saying reduced sales-tax collections negatively affect state services.

But proponents have countered that sales-tax holidays should lead to an overall sales boost, with consumers eating out, buying gasoline and making other purchases while they seek out school supplies.

A study released earlier this month by the University of Cincinnati’s Economics Center showed that last year’s event boosted sales-tax collections by an estimated $4.7 million.