Ohio’s Budget Bill and Sales Tax Changes

The state of Ohio recently passed its budget bill on July 18th, which contains several sales tax changes, including new provisions for economic nexus.  Effective August 1, 2019, remote sellers with more than $100,000 in Ohio gross receipts or 200 Ohio transactions are required to collect Ohio sales tax. Remote sellers with annual receipts of less than $1,000,000 from remote sales in the U.S. are not required to register under Ohio’s economic nexus provisions.  Ohio can now also be added to the growing list of states who have adopted marketplace facilitator legislation.  This statute requires marketplace facilitators who own or operate a marketplace where others sell their goods or services to collect Ohio sales tax if their Ohio sales are higher than $100,000 or 200 transactions annually.

The budget bill also expanded the exemption of cleaning equipment and supplies for processing equipment to include any manufacturing operation that produces food for human consumption.  Previously, the exemption was limited to the dairy industry.  The sales tax exemption on vehicles, repair services and other attached items for professional motor sport racing teams has been eliminated.

Ohio also authorized its counties to impose local sales and use taxes in increments of 0.05%.  The legislation also approved a 0.5% local tax for construction of detention facilities by non-charter counties.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2020 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on

Pennsylvania Commonwealth Court Decides Market-Based Sourcing for Services Prior to Legislative Change in 2014
Ohio Net Operating Loss’ Impact on the Bonus Depreciation Adjustment
State Tax Nexus Considerations and COVID-19
Ohio Sales Tax Holiday 2020
Pennsylvania EITC Applications Open July 1
Extended Deadlines Granted for Ohio Property Tax Collection

Register to receive our weekly newsletter with our most recent columns and insights.

Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us

contact us

Map of Pittsburgh Office

One PPG Place, Suite 1700
Pittsburgh, PA 15222

p:412.261.3644     f:412.261.4876

Map of Columbus Office

65 East State Street, Suite 2000
Columbus, OH 43215

p:614.621.4060     f:614.621.4062

Map of Washington Office
Washington, D.C.

1660 International Drive, Suite 600
McLean, VA 22102