Ohio Sales Tax Exemption for Baby Products

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:

  • Children’s Diapers
  • Therapeutic and Preventative Creams and Wipes
  • Child Restraints and Booster Seats
  • Cribs
  • Strollers
  • 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 hbksalt@hbkcpa.com.

    About the Author(s)
    Matt Dodge is a Senior Manager in the Pittsburgh, Pa., office of HBK CPAs & Consultants. He joined the firm in 2021. His background includes work with a top 100 accounting firm, a firm specializing in sales tax consulting, and a Fortune 500 company. Matt has more than 20 years of experience in state and local tax (SALT) with a focus on sales and use tax. He has served clients in various industries including construction, manufacturing, oil and gas, retail, service providers, and transportation.
    Hill, Barth & King LLC has prepared this material for informational purposes only. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.