COLUMBUS – Moms and dads preparing to send their kids back to school, or to kindergarten or college for the first time, are bracing for the big price tags associated with buying new clothes, shoes and supplies.
This weekend, Ohio consumers will get a break because of the state’s annual sales tax holiday, which exempts many back-to-school purchases from the state sales tax.
Ohio’s 2023 sales tax holiday is from midnight Friday, Aug. 4 until 11:59 p.m. Sunday, Aug. 6
Consumers are expected to spend record amounts for both back-to-school and back-to-college shopping this year, according to an annual survey by the National Retail Federation and Prosper Insights & Analytics.
Back-to-school spending is expected to reach $41.5 billion, up from $36.9 billion last year and the previous high of $37.1 billion in 2021.
The group estimates families with children in elementary through high school plan to spend on average $890.07 while those with college students are expected to spend an average of $1,366.95.
The federation’s survey showed that 55% of consumers already started shopping in early July.
Ohio’s sales tax exemption applies to any item of clothing priced at $75 or less, any item of school supplies or instructional materials priced at $20 or less. There is no limit on the amount of the total purchase. The sales tax is calculated item by item.
Under the provisions of the two-year state budget signed by Gov. Mike DeWine last month, the sales tax holiday will last longer than a weekend, starting in August 2024, and will cover almost everything priced at $500 or less.
Beyond 2024, similar expanded tax holidays will be held in years when there’s a budget surplus of at least $60 million. The length of the expanded holidays will be determined later.