Sales and Use Taxes in Ohio
In Ohio a tax is imposed on each retail sale of tangible personal property except for sales for resale or sales of property to be incorporated into tangible personal property to be produced for sale. The tax is also imposed on rentals of tangible personal property and on lodgings furnished to transient guests for less than 30 days. Ohio also charges sales tax on many services. For example, repairs of property and automatic data processing are taxable services.
Sales and use tax rate. Effective July 1, 2005, the Ohio sales and use tax rate is 5.5 percent (previously 6 percent). Make sure you contact your local governments in Ohio because they are allowed to assess an additional sales and use tax.
Tax-exempt items. Ohio has many specific items that are exempt from sales tax — for example, certain prescription medications are exempt from Ohio sales tax. You'll want to check and see if you are exempt from the sales tax.
Responsibility for paying sales tax. In Ohio the sales tax is to be paid by the consumer to the vendor. If a vendor collects the tax and fails to remit it, the vendor is personally responsible for the money. If the vendor fails to collect the tax, the state can collect the tax from either the vendor or the consumer. Both the vendor and consumer are personally liable for uncollected tax.
Sales tax on services. In Ohio, sales tax is imposed on the following services:
repairs and installation of taxable property
motor vehicle washing, waxing, painting
industrial laundry cleaning services
automatic data processing and computer services for business
landscaping and lawn care services
private investigation and security
900 telephone number calls
building maintenance and janitorial services
employment placement services
physical fitness, recreation, and sports club services
producing or reproducing written or graphic matter
production or fabrication of tangible personal property for a consideration for consumers who furnish the materials used
some telecommunications services
warranties, maintenance, or service contracts Sales and Use Taxes in Ohio