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Will Ohio's sales tax holiday apply to recreational marijuana launch?

Will Ohio's sales tax holiday apply to recreational marijuana launch?

View a previous report on the start of Ohio's recreational marijuana sales in the video player above.

COLUMBUS, Ohio (WCMH) -- The launch of recreational marijuana sales is set to intersect with another major shopping event in the state: the sales tax holiday.

Multiple medical dispensaries in the state alerted NBC4 that they had received the Ohio Division of Cannabis Control's blessing on Friday. The companies had been notified they would receive certificates of operation in the days ahead, which would allow them to convert to dual-use and also do business with recreational customers. Several dispensaries announced they would start recreational sales on Tuesday, Aug. 6, with one in particular opening as early as 7 a.m.

The selected start date for the dispensaries also happens to fall within the expanded window of the Ohio sales tax holiday. During this period, shoppers don't have to pay any state sales tax on any product they buy priced under $500. Normally running for three days, Gov. Mike DeWine announced in May that it would run for 10 days -- July 30 to Aug. 8 -- in 2024.

The Ohio Department of Taxation has laid out that the sales tax holiday counts for all tangible personal property, with some specifics. It defines tangible property as "any property that can be seen, weighed, measured, felt, or touched, including prewritten computer software."

Giving some examples, the agency said that description applies to:

  • Electronics
  • Clothes
  • Dine-in food, soft drinks, dietary supplements or pet food
  • School and office supplies
  • Sports equipment
  • Musical instruments

The state tax department also made sure to explicitly address questions about marijuana in its documentation for the sales tax holiday. Not only are any products containing marijuana excluded from the sales tax exemption, but also alcoholic beverages, tobacco and vapor products. The sales tax holiday also doesn't apply "to any tangible personal property that is over $500 and services," nor can car or boat buyers get out of paying it.

The $500 limit on the tax exemption does not only apply to the first $500 a customer spends, according to the agency. A customer can buy as many products as they want and still get the tax exemption, as long as the products each individually cost less than $500.

Any products normally sold as a bundle have to stay in the bundle offering during the holiday. The tax department said they cannot be sold as individual items to get their price low enough to qualify for exempted sales tax.

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