Ohio enacted House Bill 315 in 2025, which made important changes to the way sales and use taxes are to be collected by Ohio merchants and delivery companies. Under the previous law, delivery charges were included in the price of a sale and assessed for sales and use tax, unless the delivery charges were not directly imposed by the seller or were imposed on nontaxable items, like food, when sales and use tax is apportioned to only apply to the taxable position of the delivery charge. However, under the new law established by HB315, all delivery charges imposed by a delivery network company are taxable, including the charges assessed on nontaxable items.
This is an important change that Ohio taxpayers need to be aware of, since they will need to update tax charges based on waivers provided by delivery network companies to ensure all delivery fees are considered taxable. For Ohio merchants who sell a mix of taxable and non-taxable goods, systems and records may need to be updated to remove previous allocation methods. All Ohio taxpayers will need to ensure they are correctly charging tax and reporting delivery charges to the state correctly. (Ohio House Bill 315, effective April 3, 2025)