Ohio’s sales tax holiday, intended to offer broad tax relief, has led to confusion and frustration among both consumers and business owners. What was once a simple tax-free weekend for school supplies has expanded significantly, and many have encountered problems navigating these changes.
This week, Ohio launched an extended sales tax holiday, allowing purchases up to $500 to be exempt from sales tax. However, as Deborah Cowns discovered while shopping at Bloomin’ Garden Centre in Blue Ash, many shoppers and businesses were caught off guard by the new rules. Cowns, who was unaware of the tax exemption on her plant purchase, represents a broader issue faced by numerous customers.
The confusion extends to business owners as well. Chris McKeown, who runs Bloomin’ Garden Centre, admitted that the tax holiday took him by surprise. “Everybody was caught flat-footed,” he said. Despite running a family business for over three decades, McKeown found himself unprepared for the new requirements, resulting in customers not receiving the expected tax discount on the holiday’s first day. Adjusting the sales tax on credit card transactions proved challenging for McKeown, whose expertise lies in plants, not technology.
The Ohio Department of Taxation has clarified that compliance with the tax holiday is mandatory. According to Anne Cordial Harkin, chief of communications for the department, businesses failing to adhere to the new rules could face penalties. The department has attempted to spread awareness through social media, though this has not prevented widespread confusion.
In response to the issues, McKeown has updated his store’s signage to reflect the inclusion of plants in the tax holiday and resolved the initial problems at his garden center.
The sales tax holiday will continue through August 8, 2024. This year’s expanded holiday covers nearly all items under $500, excluding alcohol and tobacco, and even includes restaurant dining.
For those who were incorrectly charged sales tax, the Ohio Department of Taxation provides a refund request form on its website. To access it, visit the “forms” section and search for “star.” For further assistance, taxpayers can call 1-888-405-4039 to speak with a representative.