Parents and caregivers of young children can rejoice in Ohio thanks in part to some new tax exemptions that took effect on October 1, 2023. As mentioned in the Ohio Department of Taxation Sales and Use Tax Information Release ST 2023-01, these exemptions are part of Ohio’s Operating Budget (Am. Sub. H.B. 33) and will apply to certain baby products that are essential for children’s health and safety. In this blog post, we will explain what these exemptions are and how they can benefit you.
What Baby Products Are Now Exempt in Ohio?
Ohio’s new exemptions cover five categories of baby products:
- Children’s diapers: These are absorbent garments worn by children who are incapable of or have difficulty controlling their bladder or bowel movements. They must be marketed for children’s use to qualify for the exemption.
- Therapeutic or preventive creams and wipes: These are topical treatments that are applied to the skin of children to prevent or treat rashes, infections, or other conditions. They must also be marketed for children’s use to qualify for the exemption.
- Child restraint devices or booster seats: These are devices that secure children in vehicles and protect them from injury in case of a crash. They must meet the national highway safety administration standard for child restraint systems under 49 C.F.R. 571.213 to qualify for the exemption.
- Cribs: These are beds intended to provide sleeping accommodations for children. They must meet the federal safety standards in 16 C.F.R. 1219 or 16 C.F.R. 1220 to qualify for the exemption.
- Strollers: These are devices meant for transporting children from infancy to about 36 months of age. They must meet the United States consumer product safety commission safety standard for carriages and strollers under 16 C.F.R. 1220 to qualify for the exemption.
How Much Can You Save from Ohio’s Baby Product Exemption?
Ohio’s new exemptions on baby products will save you from paying the state sales tax of 5.75% on these products, as well as any local sales taxes that may apply in your area. Depending on where you live and how much you spend on these products, you could save hundreds of dollars per year.
How Do You Take Advantage of Ohio’s Baby Product Exemption?
You do not need to do anything special to apply for the exemption. The vendors who sell these products should automatically charge you the correct amount of tax (or no tax) at the point of sale. If you find that you have been charged sales tax on an exempt product, you can apply for a refund by completing an application for sales tax refund (ST AR Form), which can be found here.
Will Ohio’s Baby Product Exemption Apply to Online Sales?
The exemption applies to any purchases made while living in or located in Ohio, regardless of the location of the vendor. This means if you buy online from a company located outside Ohio, they should not charge you sales tax on these products. If they do, you can apply for a refund as explained above.
If you have any questions about the taxability of baby products or any other sales tax issues, please visit https://tax.ohio.gov/FAQ or call ODT at 1-888-405-4039 (1-800-750-0750 for persons who use text telephones (TTYs) or adaptive telephone equipment).