News Releases

News Release

July 22, 2003  -  Sales Tax on Services Kicks-in Aug. 1 - Many service businesses collecting tax for the first time

COLUMBUS (July 22, 2003) – If you have a tow truck, run a charter bus, operate a dry cleaner or laundry, give massages, drive a taxi cab or own a storage facility, you are among the business people in Ohio who must begin collecting sales taxes on those services for the first time as of August 1.

Operators and providers of those and many other services that must collect sales tax beginning Aug. 1 also are required to have a vendor’s license.

"Many of those businesses already have a vendor’s license," Ohio Tax Commissioner Thomas M. Zaino said, "but, if they don’t or are not sure, they should contact their local county auditor or the Ohio Department of Taxation (ODT)."

ODT has sent more than 300,000 letters to business people informing them of the services that are now subject to sales tax so that everyone can comply with the new sales tax law.

Zaino said ODT is making every effort possible to notify the affected businesses that tax must be collected because, if not collected from the customer, the law holds those businesses liable for payment.

More information as well as a fact sheet on the sales tax expansion can be found under the "What’s New?" heading on the ODT web site at http://tax.ohio.gov/

Questions about sales taxes or any Ohio tax matter can be e-mailed to ODT via the department’s web site.

Business people with questions can also call ODT toll-free at (888) 405-4039.

-30-

For more information contact: Gary Gudmundson, ODT Director of Communications, at 614-644-6903.