FAQs - Sales & Use Tax: General Information

What is sales tax?What is the state tax rate?What is the discount rate for sales tax returns filed timely?What are the local tax rates?What is a use tax?How is the use tax paid?Do businesses need to be concerned with use tax?Do I owe use tax on inventory items that are temporarily used in a taxable manner?As a nonresident business, do I owe use tax on items of tangible personal property when the items are brought into Ohio and temporarily used within Ohio?Should out-of-state sellers collect Ohio's use tax?Do I have to collect another state's use tax?Is sales or use tax due on purchases over the Internet?Can I get a refund if I overpay my tax?What is a taxable sale?What sales are exempt/excepted from sales tax?What services are subject to the sales tax?What services are not taxable?Must I charge tax when I sell a prepaid authorization number or prepaid telephone calling card?Is the charge for Internet service taxable?Is the charge for creating an Internet Web site taxable?Are warranties, maintenance agreements, or service contracts subject to the sales tax?How do I handle price discounts, manufacturers' rebates, coupons, and trade-in allowances?What items are considered "food" for sales tax purposes?Are there any items which can be eaten or drunk that are not considered food?Is water taxable?Are non-prescription drugs taxable?Are items purchased with food stamps taxable?What are my sales and use tax obligations for my catering business?As a bed & breakfast, do I have any responsibility to collect and remit sales tax?Are delivery costs taxable?How are floor coverings taxed?Are building and construction materials taxable?Is there an exemption certificate that construction contractors need?As a farmer, may I claim exemption on my purchases and how?If a customer is allowed to use a rented motor vehicle paid for by a motor vehicle dealer while their vehicle is being repaired or serviced at or through the motor vehicle dealer’s location and the repair is covered by a provision in a warranty, service contract, maintenance agreement, or other contract or agreement, but the contract or agreement does not specifically provide for the use of a vehicle, does the customer, dealer, or owner of the rented vehicle owe sales or use tax for the rented vehicle?What is considered a rented motor vehicle?Are corrective eyeglasses or contact lenses subject to Ohio sales/use tax?Are nonprescription “readers” subject to Ohio sales/use tax? Is the sale of lenses and frames together on the same invoice subject to Ohio sales/use tax?