Frequently Asked Questions

The Ohio Department of Taxation has compiled a list of frequently asked questions covering many different categories.

To view the questions, click on the "Select Category" bar and then click on the category you are interested in.  A list of questions will appear pertaining to that category. Then click on the question you are inquiring about and the answer will appear.

What is a "new" motor vehicle as it pertains to the trade-in allowance?

If you have any questions as to whether a motor vehicle is considered new or used, you should address the question to the Bureau of Motor Vehicles (BMV), Title Division. The sales and use tax law does not provide a definition of new or used motor vehicle so we have to defer to the BMV’s definition and determination. If BMV establishes the fact that a “new” vehicle is being sold, a trade-in allowance can be used to reduce the tax base. If BMV determines that a “used” vehicle is being sold, a trade-in allowance cannot be used to reduce the tax base.

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