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Ohio to Tax Digital Books

  • Aug 15, 2013 | Gail Cole

 Ohio will not tax this type of reading nook.

Several sales tax changes come with Ohio's new biennial budget, which began July 1, 2013. The most notable is the new state sales tax rate. Effective September 1, 2013, the Ohio state rate will be 5.75%, up from the current 5.5% rate. Another change is worth mentioning as well.

Tax the Nook

In Columbia, Luis Soriano and others bring books by burro to remote villages. In Seattle, librarians bring books on bikes to farmers markets. The creative ways books are brought to people around the globe are simply wonderful. Yet in the developed world, bound books are increasingly giving way to ebooks, and magazines and newspapers are increasingly read online.

Those of us who still enjoy turning paper pages know that in most states, sales tax is charged on books bought in stores, but an increasing number of states are also applying sales tax to ebooks, digital magazines, and audio books. Amazon currently collects sales tax on purchases sold to Arizona, California, Kansas, Kentucky, New Jersey, New York, North Dakota, Pennsylvania, Texas and Washington. The retail giant will begin collecting sales tax in Connecticut in November of this year, and other states in the new year.

Beginning January 1, 2014, Ohio joins the fray. The Buckeye State will tax sales of digital books and magazine subscriptions.

Read highlights of the new Ohio state budget here.

Where do you download your ebooks? Does sales tax apply? Are you sure?

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Ohio State Rates

photo credit: Katie Hannan via photopin cc

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.