Ohio sales tax is imposed at a rate of 5.5% at the state level. The rate was previously 6%. The counties within Ohio have been empowered to impose a permissive sales tax; rates of which range from 0.25% to 2%. Mass transit districts and transit authorities that are based in one primary county can also charge a sales tax with rates ranging from 0.25% to 2%. Increments in sales tax of Ohio have to be a minimum of 0.25%. The total rate of tax in the state of Ohio does not exceed 8.5%.
County permissive taxes of Ohio can be imposed only by a resolution undertaken by county boards of commissioners on an emergency basis. The electors of the county or districts may also participate by voting the resolution. The electors' vote however is an essential in the case of transit authority taxes of Ohio. In the state of Ohio, shipping and handling charges are also taxed since they are considered as being a part of retail prices. The Commercial Activity Tax of Ohio is the name given to the gross receipts tax of the state. This form of tax is applicable to businesses only.
The sales tax rates of the counties of Ohio (the rates given are a total of the state and county level tax rates) are as follows:
- Williams - 7%
- Lucas - 6.75%
- Van Wert - 7%
- Mercer - 6.5%
- Miami - 6.5%
- Delaware - 6.75%
- Holmes - 6.5%
- Wayne - 6.25%
- Columbiana - 7%
- Richland - 6.75%
- Lawrence - 7%
A recent bill has been introduced in the House of Representatives in Ohio. According to this bill, the vendors who follow origin based situsing rules in order to fathom the necessary and appropriate sales tax jurisdiction in which a sale can be taxed, should carry on following the same procedure. On the other hand, the vendors who use destination based sourcing should be authorized to change tracks to origin-based situsing. Another important proposal is to give the authority of planning for in state and out of state vendors to pull together and remit the use tax of Ohio at a uniform rate to the Tax Commissioner.