Governor DeWine recently signed Ohio's biennium budget, Am. Sub. H.B. 110, which repealed the sales and use tax on employment services and employment placement services. As such, employment services and employment placement services are no longer taxable in Ohio beginning on October 1, 2021.
8 Are warranties, maintenance agreements, or service contracts subject to the sales tax? Basically, yes. However, warranties, extended warranties, maintenance agreements or service contracts covering exempt equipment would also be exempt.
Tax-exempt goods Some goods are exempt from sales tax under Ohio law. Examples include most non-prepared food items, items purchased with food stamps, and prescription drugs.
Generally, services are not subject to sales tax in Ohio, but there's exceptions to every rule. For example, some taxable services in Ohio include: Landscaping or Lawn Care Services.
Tax-exempt customers Some customers are exempt from paying sales tax under Ohio law. Examples include government agencies, some nonprofit organizations, and merchants purchasing goods for resale. Sellers are required to collect a valid exemption or resale certificate from buyers to validate each exempt transaction.
The services taxable in Ohio include “landscaping and lawn care service” and “snow removal service,” R.C. 5739.01 (B)(3)(g) and 5739.01(B)(3)(t), respectively.
Tax rate by region Ohio. Businesses in Ohio selling SaaS (software as a service) should be aware that its sales are subject to the state's 5.8% sales tax.
Services. Generally, services are not subject to sales tax in Ohio, but there's exceptions to every rule. For example, some taxable services in Ohio include: Landscaping or Lawn Care Services.