Ohio consumers pay a sales tax on purchased products and services that help fund state and local government functions. According to Sean Tevis, a representative in the Kansas Legislature, lower income families and individuals pay a higher percentage of their income on food, making a sales tax on food harmful to the poor. For this reason, the state of Ohio does not charge a sales tax on almost all food products and offers clear definitions on which products should be considered sales tax exempt.
The state of Ohio sales tax exemption applies to all consumable food products that offer nutritional value when ingested by humans, whether they are in liquid, solid, frozen, dried or dehydrated form. In 2004, the state changed the definition of food items to include water, ice, fruit and vegetable juices in concentrations of greater than 50 percent, gum, mints and sweetened drinks that contain milk. Consumers do not pay tax on condiments, bags of sugar, bakery items, chips, cooking oils, coffee and tea extracts. The state does not apply a sales tax to any items purchased with food stamps.
The Ohio Department of Taxation allows sales tax on drinks sweetened with sugar or corn syrup, such as sodas or sugary juices, tobacco and alcoholic beverages. Beer-flavored beverages that contain alcohol in a concentration of less than half a percent receive a sales tax exemption. The state taxes powdered drink mixes, such as Tang and Kool-Aid. The Ohio sales tax exemption does not apply to vitamins, pet food, medications, vitamins, mineral oil or diet drugs.
As of January 2011, Ohio restaurants collect sales tax of 5.5 percent on all food purchases consumed on premises at restaurants. Shoppers who purchase fast food for consumption off premises do not need to pay this tax, according to the Ohio Department of Transportation. The local county can choose to add an additional 1.5 percent tax rate onto restaurant food for a maximum combined sales tax rate of 7 percent.
The state does not tax all prepared food sales. According to the Ohio Department of Taxation, food consumed on premises by a restaurant employee as part of their compensation or as a fringe benefit of employment does not result in a sales tax. The state does not tax college or school meal plans or foods sold to students in these settings. Prepared foods sold by charitable organizations and churches receive sales tax exemption if such sales do not occur more than six days in a given calendar year.
