The sales tax in Franklin County and slivers of a few surrounding counties will increase by half a percent on Jan. 1.
In November, voters approved a Central Ohio Transit Authority levy that will bring COTA’s share of sales tax to 1%. The increase will fund LinkUS, a plan to improve bus service, create rapid bus lines and build more sidewalks and bike paths.
As you weigh whether to make a big purchase this year before the tax increase, here’s what you need to know.
Where does the COTA sales tax apply
COTA’s sales tax applies within the COTA service area. This includes all of Franklin County but also where Dublin, Westerville, Columbus and Reynoldsburg dip into surrounding counties— Delaware, Licking, Fairfield and Union.
What will the total sales tax be
Sales tax is a combination of taxes imposed by the state, counties and transit authorities like COTA. Currently, the state imposes a 5.75% sales tax on most sales and services.
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Starting Jan. 1, the total sales tax in Franklin County will be 8%, including 1.25% for the county and 1% for COTA.
Residents of the Licking County part of Reynoldsburg will be hit hardest: sales tax there is rising to 8.25% since Licking County imposes a 1.5% sales tax.
The parts of Dublin in Union County and Delaware County will have a 7.5% sales tax.
The portions of Columbus and Westerville in Delaware County will also have a 7.5% sales tax.
And where Columbus and Reynoldsburg dip into Fairfield County will have a 7.25% sales tax.
What does sales tax apply to
Sales tax applies to most purchases and services, including restaurant meals, hotel rooms and online purchases.
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Perhaps most consequentially for a consumer’s wallet, sales tax applies to vehicles. And you can’t go to another county to get a lower sales tax on a new car. Ohioans must pay sales tax on vehicle purchases based on where they live, not where they buy.
There are some key exemptions that sales tax does not apply to in Ohio, including:
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Most groceries and food purchased for take-out
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Prescription medication and prescribed medical equipment
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Public utilities including gas, water and electricity
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Newspapers
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Many sales involving churches and nonprofits as long as the nonprofit doesn’t make sales on more than six days in the year (think thrift stores)
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Gasoline for vehicles that is instead subject to the state gas tax of 38.5 cents per gallon
This article originally appeared on The Columbus Dispatch: Sales tax to increase in Franklin County. Here’s what to know
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