Lear Introduces Legislation to Eliminate Double Taxation on Food Delivery Applications

COLUMBUS—State Representative Beth Lear (R-Galena) recently introduced House Bill 424, legislation that addresses unintended double taxation that can occur when using delivery services such as Instacart and Uber Eats.

When using these delivery services, sales taxes are often collected twice on non-food items. While a mechanism exists to solve the problem, it is cumbersome and overly complicated.  House Bill 424 simplifies the process and eliminates the excess taxation these new companies have been paying.

“As the economy continues to evolve, we need to update our tax system,” said Lear. “With the help of Senator Tim Schaffer, we have reviewed the current law, discussed potential improvements with the Ohio Department of Taxation and a business that has been impacted, and together crafted House Bill 424. The change will allow a company to request a waiver from the Tax Commissioner that ensures sales taxes are paid once for the appropriate amount of sales.”

The result is delivery service companies will no longer collect the sales tax on purchased goods, leaving retailers to collect the sales tax. The result is a cleaner, simpler, single-tax transaction for all parties.  

House Bill 424 awaits committee assignment.