CENTERVILLE, Ohio (WDTN) - A more than 70-year-old law allows for something known as the Use Tax to be collected for online sales, but 2 NEWS found many fail to pay it.
The tax is supposed to be paid if you buy something and aren't charged sales tax by the business, as is the case with many online retailers.
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You're required to report those purchases and pay that tax on your yearly return, but few realize they are responsible for that tax if businesses don't collect it.
Inside one Centerville shop you'll find a barber chair, but what you won't find is a barber.
"No we don't do hair cuts," says the owner of DaytonIT Mark Harwood.
The chair is one of the many items that DaytonIT gets from customers and sells on the online shopping site ebay.
But even though the store isn't doing hair cuts, it still takes a little off the top.
"If a customer is in Ohio and makes a purchase from us we charge Ohio sales tax," Harwood says.
But 2 NEWS found many other businesses selling online don't charge sales tax and even fewer customers know they're supposed to pay it.
"The awareness level among individuals is fairly low," says Ohio Tax Commissioner Joe Testa.
Those with the Ohio Department of Taxation say some studies estimate the state is missing out on $200 to $300 million in taxes from online sales, so the department is offering amnesty until May to try to get more businesses to collect taxes on their online sales.
"The idea is more and more businesses will be regular filers," Testa says.
Businesses like DaytonIT, where Harwood would love to pay the sales tax if it meant cutting ties with the barber chair on Cyber Monday.
"Today may be a good day," Harwood says. "We already started with a good amount of sales so we're hopeful."
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