In Ohio, sales tax exemption applies to certain types of food, some building materials, and prescription drugs. Ohio uses a state-wide sales tax rate of 5.75%, but most cities, counties or other local authorities apply an additional sales and use tax from .75 to 2.25%.
Goods that are subject to sales tax in Ohio include physical property, like furniture, home appliances, and motor vehicles. Ohio first adopted a general state sales tax in 1934, and since that time, the rate has risen to 5.75 percent.
Tangible products are generally taxable in Ohio. Services are generally not taxed, from plumbing to freelancing. Digital products like mobile apps, SaaS, and video/audio streaming services are taxed in Ohio.
Prescription medicine, groceries and gasoline are all tax-exempt. For instance, a couple rural areas, such as Wayne County, only charge 6.5%. But a bigger city like Cleveland charges 8% because its county, Cuyahoga, adds the maximum local tax rate.
Visit Ohio’s tax forms page to download and complete the appropriate exemption form. The state has several, including the general resale certificate, an exemption form for construction contractors, sales of motor vehicles, and sales of vessels.
In Indiana, certain items may be exempt from the sales tax to all consumers, not just tax-exempt purchasers. Any unprepared foods that you can purchase at a grocery store are not considered to be taxable in Indiana. In addition to these food items, items which are sold to both farmers and to contractors are not eligible for sales tax in Indiana.
Common exempt goods include unprepared grocery food and health care items. Sales tax rates range from 5% to 11.5% across Indiana. 7% is the state sales tax rate. Counties and cities can levy additional taxes up to 5% combined.
Registered Indiana retailers and out-of-state businesses may both use a form ST-105 to certify that a purchase of tangible personal property is exempt from collection of state sales tax. Sellers with genuine state resale certificates are exempted from tax when they resale products. Products sold to charities or schools are provided tax exemptions.
In Indiana, you must file a sales tax return if your business has sales of more than $100,000 in a year. You can file online or by mail. The due date is the 20th of the month following the end of the reporting period. Sales tax exemption forms can be downloaded from the Indiana Department of Revenue.