Ohio State Tax Updates

Our Dash of SALT Blog provides the most recent developments and changes in state and local tax regulations. Here are the latest updates for Ohio.

June 2, 2026

Ohio Pauses New Data Center Sales Tax Exemptions

Authored by: Breea Boylan, CPA and Courtney Easterday, MSA

On May 27, 2026, Governor Mike DeWine announced that he directed the chair of the Ohio Tax Credit Authority to pause consideration of any new data center sales tax exemption requests while the Ohio General Assembly’s Joint Data Center Committee studies the impact of data center growth in the state. The Authority will stop accepting new exemption proposals after its June 1, 2026, meeting. Key points include:

The pause applies to new exemption requests only; it is not a ban on data centers, and previously approved exemptions are unaffected.
Separately, House Bill 957 (136th General Assembly), introduced May 27, 2026, would amend R.C. 122.175 to prohibit new data center sales tax exemptions from being granted.
Data centers previously incentivized under the program reported $27.2 billion in capital investment in 2025.

If you have questions about Ohio’s data center sales tax exemptions, please reach out to a member of the Withum SALT Team.

February 11, 2026

Ohio Broadens Taxability of Delivery Network Service Fees

Authored by: Bonnie Susmano, JD, MBA and Emilia Jarrin

In 2025, Ohio enacted House Bill 315, which revised the state’s sales and use tax rules related to delivery services. Previously, delivery charges were taxable when tied to taxable goods, and charges for nontaxable items could be excluded or allocated between taxable and nontaxable sales. Under the new law, this distinction no longer applies. All delivery fees charged by a delivery network company are now subject to Ohio sales and use tax, regardless of whether the items delivered are taxable. This change requires Ohio taxpayers to reassess how to calculate, collect, and report delivery charges. Businesses may need to update their billing systems and discontinue prior allocation methods to ensure all delivery-related charges are fully taxed and reported in compliance with the revised rules.

If you have questions about taxability, please reach out to a member of the Withum SALT Team.

July 24, 2025

Ohio House Bill 96 Changes to Sales and Use Tax

Authored by: Breea Boylan, CPA and Penny Sweeting, CPA

Ohio Governor DeWine signed the 2026 budget bill, HB 96, on June 30, 2025, which included material changes to the Buckeye State’s sales and use tax. These changes include eliminating several exemptions, including the Direct Marketing Exemption, Printers Exemption, Electronic Publishing Exemption, and Call Center Exemption. These exemptions are repealed effective January 1, 2026. Along with the elimination of the exemptions, the bill also caps the vendor discount for timely filed sales tax returns at $750 per month, per license. This cap is effective for returns filed on or after January 1, 2026.

If you have questions about Ohio sales tax changes, please reach out to a member of the Withum SALT Team.

December 17, 2024

Ohio Amends Commercial Activity Tax Record Retention Regulation

Authored by: Breea Boylan, MSA, CPA and Courtney Easterday, MSA

The Ohio Department of Taxation amended Ohio Admin. Code § 5703-29-18 effective December 16, 2024. This code relates to the records retention requirements for the Commercial Activity Tax (“CAT”). Taxpayers must now retain records for tax credits claimed against the Commercial Activity Tax for the later of four years after the filing date where the credit was established or the due date of the return covering the period in which the credit was claimed.

If you have questions about record retention issues, please reach out to a member of the Withum SALT Team.

Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.