The Ohio Department of Taxation recently issued an information release (ST 2023-01 – Sales Tax Exemption for Baby Products) with guidance on new sales tax exemptions related to children and childcare. The exemptions are effective October 1, 2023 and apply to the following purchases:
The information release discusses each exemption and any qualifying factors. For example, child restraints, booster seats, and cribs items must meet federal standards to qualify for the sales tax exemption. The new exemptions only apply to qualifying products targeted to children. For example, adult diapers and creams for adults do not qualify for the sales tax exemptions. The guidance also provides refund information for consumers if they are charged sales tax by retailers on exempt products.
The complete information release from the Ohio Department of Taxation can be viewed here.
If you have questions on Ohio’s new sales tax exemptions or other SALT matters, please contact HBK’s SALT Advisory Group at firstname.lastname@example.org.