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Ohio Sales Tax Holidays Proposed

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COLUMBUS, Ohio -- State Rep. Kevin Bacon wants to get rid of the state sales tax for six days a year.

The proposed sales tax holidays would cover clothing, school supplies, sporting goods, computers and software on the first Friday, Saturday and Sunday in August and December.

He said the holiday is designed for families to get the tax break while buying school supplies and holiday gifts.

"Regardless of the economic times, this is going to serve to spur economic development and also the second path is to provide some relief to those people that are suffering during these times," Bacon said.

Bacon said 16 states and the District of Columbia already have sales tax holidays -- each with slightly different rules.

The national retail federation supports the tax holidays in states that have already approved it.

"If you have an increased flow of traffic, you'll have a percentage of those people that will buy additional items that aren't even subject to the sales tax holiday," Bacon said.

The Ohio Department of Taxation said the state made more than $7 billion in sales tax in both 2008 and 2009.

The department opposed the plan when it was introduced last year.

Bacon and other supports claim the tax holiday may cost the state in the beginning, but they believe consumers will create a windfall in the long run.

"When they save money on things that they have to have, they channel the savings into buying things that they want to have," said Bill Johnson, of the Ohio Sales Tax Reform Initiative.

The bill has been introduced in the Ohio House and is waiting for a committee assignment.

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