Ohio Tax Exempt Form

Ohio tax exempt form, or Sales and Use Tax Unit Exemption Certificate (STEC-U), is the most common type of exemption certificate and can be used by any purchaser to claim exemption for a variety of reasons. Sales tax is a state-imposed levy on the sale of certain goods and services. It’s collected by the seller and remitted to state tax authorities, who use it to fund local public services and infrastructure. States can impose a variety of rates and rules depending on their particular policies and history. Ohio’s general state sales tax is 5.75 percent, and there may also be one or more local taxes. In the past, a business was required to register for sales tax only if it had physical presence in a state, such as an office or retail store. But the Supreme Court’s decision in South Dakota v. Wayfair has changed that, and now remote sellers can have sales tax nexus in Ohio if they meet certain criteria.

To be exempt from paying sales tax in Ohio, a buyer must present a valid exemption or resale certificate to the seller. The document must include:

• The date.
• The buyer’s name and address.
• The legal basis for the exemption.
• A description of the merchandise being purchased.

Some types of goods and services are taxable in Ohio, including food and beverages, gasoline, and most prescription drugs. State and local laws determine the taxability of other goods and services, so buyers should review these to ensure they are compliant. In addition, sellers must keep good records to determine their taxable sales and remittance obligations.

How to Complete Ohio Sales and Use Tax Exemption Certificate?

Depending on your situation, you may need to complete a sales and use tax exemption certificate in order to qualify for real estate property tax exemption. When completing the application, be sure to provide as much detail as possible about how the property will be used. This will help the government make a decision about whether or not your exemption request should be granted.

Once your tax exemption certificate is complete, it should be kept on file with the Department of Taxation. The form should be updated as soon as your circumstances change. This includes changing jobs, getting married or divorced, having a baby, or moving to another city or state. Failure to update your withholding can result in interest penalties when you file your taxes.

Additional Information

Sales and Use Tax Contractor’s Exemption Certificate (STEC-CO): This certificate is used by contractors who are purchasing materials for incorporation into real property under an exempt construction contract.

Motor Vehicle, Off-Highway Motorcycle, or All-Purpose Vehicle Exemption Certificate: This certificate is used when purchasing a vehicle that is exempt from sales and use tax.

Multistate Tax Commission Uniform Sales and Use Tax Certificate: This certificate can be used in Ohio and other states that accept it to claim exemption for purchases for resale or for incorporation into a product for sale.