An Explanation of Ohio Use Tax

When you purchase items that are subject to sales tax from a vendor doing business in Ohio, that vendor will charge you sales tax.  When you buy items that are taxable from a vendor outside Ohio, that vendor may not charge you sales tax.

If you purchase a taxable item from a non Ohio vendor that does not charge you sales tax, you owe Use Tax. The Use Tax is paid by you directly to the State of Ohio.  This is done by declaring your out of state purchase and paying the tax which is equal to the local sales tax rate. Thus, the only difference between the sales tax and use tax is how the tax is paid. Sales tax is collected from you and paid to Ohio by the vendor.  Use tax is paid directly to Ohio by you.

Ohio suspects that some residents (business and individuals) are not paying the Use Tax. Accordingly, since Ohio needs the revenue, is is going after the uncollected tax by increasing the audit function. To encourage Ohio residents to  "come clean," Ohio is initiating an amnesty program which allows taxpayers to avoid penalties and interest on the unpaid tax liability.

If you believe you may be subject to the Use Tax, we encourage you to call us to review your options.