Ohio Sales Tax Update
Our hardworking, compassionate Ohio Legislature has almost kept it's promise to eliminate the TEMPORARY 1% increase of the sales tax rate that was due to expire on July 1, 2005. The new budget has now given us a PERMANENT 1/2% decrease effective July 1, 2005. It sure is comforting to know that Ohio politicians ALMOST keep their promises. What do we expect, when the same bunch of people gave us a TEMPORARY, 1%, PASSED IN THE GREAT DEPRESSION TO PROVIDE POOR RELIEF SALES TAX!
The sales tax discount rate for merchants will remain at 0.9%.
The requirement to collect sales tax for the district and rate the items are shipped to have once again been postponed for most merchants. Merchants with delivery sales in excess of $30 million in 2005 must change by May 1, 2006. Merchants within delivery sales in excess of $5 million in 2005 must change by May 1, 2007. All other merchants must change by January 1, 2008. Any vendor may change prior to these dates, but once they change they may not go back to their old method of collecting the rate of where the item was sold. Ohio vendors are now eligible for partial reimbursement for the costs of converting to the new system. If you wish to be reimbursed SAVE THE INVOICES THAT SHOW HOW MUCH IT COST YOU!
The statute of limitations for sales tax assessments has been extended to four years after the date the return was filed or should have been filed, which ever is later. This change is effective January 1, 2006.
The exemption from sales tax for DRUGS AND MEDICAL EQUIPMENT has been changed. Now, "sales of drugs for a human being that may be dispensed only pursuant to a prescription are exempt, and hospital beds and medical oxygen and medical oxygen-dispensing equipment when purchased by hospitals, nursing homes, or other medical facilities are exempt." People who use these items at home to stay alive are now subject to tax.
Sales of investment metal bullion and coins will now be subject to tax. That's right, the sale of money is now taxable! Investment coins are defined as "numismatic coins or other forms of money and legal tender manufactured of gold, silver, platinum, or other metal under the law of the United States or a foreign nation that have a fair market value greater than any statutory or nominal value."
The sales tax discount rate for merchants will remain at 0.9%.
The requirement to collect sales tax for the district and rate the items are shipped to have once again been postponed for most merchants. Merchants with delivery sales in excess of $30 million in 2005 must change by May 1, 2006. Merchants within delivery sales in excess of $5 million in 2005 must change by May 1, 2007. All other merchants must change by January 1, 2008. Any vendor may change prior to these dates, but once they change they may not go back to their old method of collecting the rate of where the item was sold. Ohio vendors are now eligible for partial reimbursement for the costs of converting to the new system. If you wish to be reimbursed SAVE THE INVOICES THAT SHOW HOW MUCH IT COST YOU!
The statute of limitations for sales tax assessments has been extended to four years after the date the return was filed or should have been filed, which ever is later. This change is effective January 1, 2006.
The exemption from sales tax for DRUGS AND MEDICAL EQUIPMENT has been changed. Now, "sales of drugs for a human being that may be dispensed only pursuant to a prescription are exempt, and hospital beds and medical oxygen and medical oxygen-dispensing equipment when purchased by hospitals, nursing homes, or other medical facilities are exempt." People who use these items at home to stay alive are now subject to tax.
Sales of investment metal bullion and coins will now be subject to tax. That's right, the sale of money is now taxable! Investment coins are defined as "numismatic coins or other forms of money and legal tender manufactured of gold, silver, platinum, or other metal under the law of the United States or a foreign nation that have a fair market value greater than any statutory or nominal value."
posted by James E. Newland, CPA | 7:03 AM
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