Tax Exemption

Tax exempt status may provide a potential taxpayer complete relief from tax, tax at a reduced rate, or tax on only a portion of the items subject to tax. Examples include exemption of charitable organizations from property taxes and income taxes, exemptions provided to veterans, and exemptions under cross-border or multi-jurisdictional principles. Tax exemption generally refers to a statutory exception to a general rule rather than the mere absence of taxation in particular circumstances (i.e., an exclusion). Tax exemption also generally refers to removal from taxation of a particular item or class rather than a reduction of taxable items by way of deduction of other items (i.e., a deduction). Tax exemptions may theoretically be granted at any governmental level that imposes taxation, though in some broader systems restraints are imposed on such exemptions by lower tier governmental units.

Sales tax

Most states and localities imposing sales and use taxes in the United States exempt resellers from sales taxes on goods held for sale and ultimately sold; Ohio is one of those states. In addition, most such states and localities, including Ohio, exempt from sales taxes goods used directly in the production of other goods (i.e., raw materials).

Charitable and religious organizations

Many tax systems, such as Ohio, provide complete exemption from tax for recognized charitable organizations. Such organizations may include religious organizations (temples, mosques, churches, etc.), fraternal organizations (including social clubs), public charities (e.g., organizations serving homeless persons), or any of a broad variety of organizations considered to serve public purposes.

Governmental entities

Most systems exempt internal governmental units from all tax. For multi-tier jurisdictions, this exemption generally extends to lower tier units and across units. For example, state and local governments are not subject to Federal, state, or local income taxes in the U.S.

Educational institutions

Some jurisdictions provide separate total or partial tax exemptions for educational institutions. These exemptions may be limited to certain functions or income.

Other not-for-profit entities

Some jurisdictions provide tax exemption for other particular types of organizations not meeting any of the above categories.

If you meet the qualifications for Tax Exempt status and want to register your company with us, simply complete and file the Ohio Blanket Exemption Certificate with us. By completing and submitting either the PDF or Word Fill-In document supplied by the state of Ohio your company will be eligible to purchase qualifying goods and services sales tax exempt.
PDF fill-in WORD fill-in

Additional questions regarding your ability to receive an Ohio Tax Exempt status should be directed to the Ohio Department of Taxation located here:

Additional Ohio related Taxation forms are located here:

And a more general overview of other types of taxation is located here: