What services are exempt from sales tax in Ohio?
In Ohio, certain services are exempt from sales tax, providing relief for both consumers and businesses. Understanding which services are exempt can help individuals and companies save money and navigate the state’s tax laws more effectively. This article outlines some of the key services that are exempt from sales tax in Ohio.
1. Residential and Commercial Real Estate Services
Real estate services, including the sale of residential and commercial properties, are exempt from sales tax in Ohio. This includes brokerage services, title searches, and appraisals. However, services related to the construction or improvement of real estate, such as architectural and engineering services, are subject to sales tax.
2. Legal and Professional Services
Several legal and professional services are exempt from sales tax in Ohio. These include legal services provided by attorneys, medical services, and services provided by licensed professionals such as doctors, dentists, and veterinarians. Additionally, services provided by certified public accountants, architects, and engineers are exempt from sales tax.
3. Educational Services
Educational services provided by public and private schools, colleges, and universities are exempt from sales tax in Ohio. This includes tuition, fees, and books. However, services such as tutoring and private lessons are generally subject to sales tax.
4. Religious Services
Religious organizations in Ohio are exempt from sales tax on services provided directly related to their religious activities. This includes services such as worship, religious education, and religious counseling.
5. Nonprofit Organizations
Services provided by nonprofit organizations are generally exempt from sales tax in Ohio. This includes services provided by hospitals, charities, and social service organizations. However, the exempt status may vary depending on the specific services provided and the organization’s tax-exempt status.
6. Insurance Services
Insurance premiums paid for life, health, and property insurance are exempt from sales tax in Ohio. However, premiums for liability insurance are subject to sales tax.
7. Transportation Services
Transportation services, such as common carrier services and private car services, are exempt from sales tax in Ohio. This includes services provided by airlines, railroads, and motor carriers.
8. Telecommunications Services
Telecommunications services, including telephone, internet, and cable television services, are exempt from sales tax in Ohio. However, the installation and maintenance of these services may be subject to sales tax.
It is important to note that while these services are exempt from sales tax in Ohio, certain conditions and limitations may apply. It is always recommended to consult with a tax professional or the Ohio Department of Taxation for detailed information and guidance on the state’s sales tax laws.
