Information Release

CAT 2006-02 - Suggested Document for the Exclusion for Automobile Dealers to Meet a Customer’s Preference - Issued March, 2006

The purpose of this release is to provide guidance to taxpayers who qualify to take an exclusion from the calculation of their gross receipts for purposes of the commercial activity tax (CAT) pursuant to R.C. 5751.01(F)(2)(t). The attached document has been created by the Ohio Department of Taxation (ODT) for the convenience of automobile dealers who qualify for this exclusion. Although this form is not mandatory, the completed document will assist the motor vehicle dealers with their burden of documenting that the applicable transfer meets the requirements set for in R.C. 5751.01(F)(2)(t). Since both the transferor motor vehicle dealer and the transferee motor vehicle dealer may be eligible for the exclusion, it is recommended that both the transferor motor vehicle dealer and the transferee motor vehicle dealer retain a copy of this completed document in their records. Please do not submit this form to ODT.

In order to qualify for this exclusion, the transaction must meet all of the following requirements:

              (1) The transferee motor vehicle dealer must be either a new motor vehicle dealer or a used motor vehicle dealer, as defined in R.C. 4517.01(J);

              (2) The transfer must involve a motor vehicle, as defined in R.C. 5735.01(A);

              (3) The transferor motor vehicle dealer must also be a motor vehicle dealer, as defined in R.C. 4517.01;

              (4) The transfer must be made for purposes of resale by the transferee motor vehicle dealer; and

              (5) The transfer must have been made based on the transferee’s need to meet a specific customer’s preference for a motor vehicle.

The document attached below is provided to assist the transferee and transferor dealer in properly documenting such transfer. Upon audit, additional information may be requested to verify the transfer meets the exclusion requirements of R.C. 5751.01(F)(2)(t).

 

Commercial Activity Tax

Notice of Motor Vehicle Transfer for Customer’s Preference

To be completed and signed by Dealer receiving qualifying motor vehicle (Transferee)

_________________________________        _________________________________
Transferee Dealership Name                                   Dealership License #

_________________________________        _________________________________
Street Address                                                       City, State, Zip Code                   

Check as Appropriate:             ___ Vehicle for Vehicle Trade           ___ Dealer Purchase 

Year, Make, Model and VIN of vehicle received in the transfer:

Year/Make/Model: _________________________________ VIN:  ____________________

Customer Name: _______________________________________

Cash or cash equivalent paid / received (circle) in the trade: $____________________________

 

Name of Dealer providing qualifying motor vehicle (Transferor) 

_________________________________        _________________________________
Transferor Dealership Name                                   Dealership License #

_________________________________        _________________________________
Street Address                                                       City, State, Zip Code                   

If applicable, Year, Make, Model and VIN of vehicle provided in exchange for the transfer:

Year/Make/Model: ______________________________VIN:  ________________________

 

Under penalties of perjury, I hereby certify that, to the best of my knowledge, the above listed motor vehicle was transferred to my dealership based upon my dealership’s need to meet a specific customer’s preference in order to facilitate the sale of a motor vehicle pursuant to R.C. 5751.01(F)(2)(t) and that the value of the transfer listed is correct.

 

__________________________________________
Authorized Signature of Transferee Dealership
__________________________________
Print Name
_________
Date

This form shall be retained by both dealers and shall not be submitted to the Ohio Department of Taxation.

(Note: Follow this link to a printable copy (DOC) of this form).