Ohio enacted a use tax exemption for exports delivered into Ohio temporarily before leaving the country. The exports must be held in Ohio for:
- temporary storage; and
- package consolidation.
When Temporary Storage is Exempt from Use Tax
If property is delivered into Ohio for temporary storage and package consolidation before being shipped to a foreign citizen, those exports are not subject to Ohio use tax. However, the property:
- can be held in story for no more than 60 days; and
- must be held by a person or business that is unrelated to the foreign buyer.
When Use Tax Exemption Does Not Apply
Goods do not qualify for the exemption if Ohio law requires that they be registered or licensed in Ohio.
S.B. 51, Laws 2018, effective retroactively to October 1, 2017