Here’s everything you need to know about the Ohio Sales Tax.
What’s the Ohio Sales Tax?
Ohio sales tax is charged on items you purchase like clothes and electronics. In addition, Ohio state imposes a sales tax on certain types of software usage.
Why am I being charged this tax now and not last year?
We have to charge taxes in Ohio because one of our employees works in Ohio and software companies with employees, offices, or property (“nexus”) in Ohio are required to collect this tax from their customers in the state.
Do I have to pay this tax?
All Ohio state customers are required to pay this tax.
How did Basecamp decide if I am a Ohio state customer?
We used credit card billing zip codes to determine who should be charged the tax. All customers with Ohio state zip codes are required to pay the tax.
How does Basecamp calculate this tax?
Basecamp is required to charge the sum of the Ohio state tax rate (5.75%) plus local taxes. The local rates vary by zip code/county. For example, if you’re in Adams county, your local tax rate is 1.5% + 5.75% for a total of 7.25%. That means if your invoice is normally $29 and you live in Adams county, you’ll see a additional charge of about $2.10. 100% of the tax we collect will be sent on to the state of Ohio.
When does this tax start?
Basecamp will be collecting this tax with its April invoices. If you’re a Ohio state customer, you’ll see a separate line item on your invoice.
Will other companies charge this tax?
Yes, all software companies that have nexus (employee, offices or property) in Ohio state are required to collect this sales tax from its customers.
What does Basecamp do with the tax it collects?
100% of the taxes Basecamp collects are remitted directly to Ohio state.
Will these tax rates change?
Yes, local taxes and state taxes may change. We’ll update our billing to reflect changes in tax rates.
What if I am no longer an Ohio state customer and need to update my billing info?
What should I do if my questions aren’t answered here or I need help?
Please contact our support team and they will be able to assist you.