Vehicle Taxability - Letter Response Topics

Did you receive a letter from us?

All title transfers and exemption claims on motor vehicles and other equipment is regularly audited by the Ohio Department of Taxation in accordance with Ohio Revised Code (RC) 4505.09(B)(2)(c) and 5739.13 to verify if the sales tax liability has been satisfied.

 

Motor Vehicle Casual Sales

There are three types of audit letters that we send. The recipients’ responses to these letters help us to review casual sales transactions to determine if a sales tax is owed.  They can be identified by the letter name in the left, lower corner. The letters are: VTSIQ206 (seller inquiry), VTBIQ207 (buyer inquiry) and VTBTD217 (buyer tax due).

 

Sales/Use Tax Exemption Audit

There are many different types of audit letters that we send out to validate the exemption claim.  They can be identified by the header information on the top on the page, and the box which specifies exemption type claimed.

Information regarding what to provide when responding to these letters can be found in our drop down list below.

 

 

Frequently Asked Questions Tool

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. For information on how to respond to the letter you received, click on the letter type.

Casual Sale OM 12-D or WC 12-D (Outboard Motor or Watercraft)

This letter is sent to the buyer of the watercraft or outboard motor to verify the consideration given for the watercraft or outboard motor.

How do I respond?

Line 1 – Place the amount of money you gave for the watercraft or outboard motor.

Line 2 – Did you take over the seller’s loan to pay off the watercraft or outboard motor?  If so, place the amount of the loan balance that the buyer took over on this line. Any amount used to pay off the seller’s loan should be placed on this line, even if you did not physically pay the seller.

Line 3 - Did you trade watercraft or outboard motors? If you did, write down the fair market value as well as the year, make, and model of the watercraft or outboard motor you gave in exchange for the referenced vehicle. (Failure to provide a fair market value will result in a value being assigned for you)

Line 4 – Did you provide other goods or services for the watercraft or outboard motor instead of money? If so, write down what you gave and assign a fair market value to those goods or services.  (Failure to provide a fair market value will result in a value being assigned for you)

Line 5 – Add up the amounts listed on lines 1 through 4 and place the total on this line.

Line 6 – Assign a condition to the watercraft or outboard motor based on your knowledge of the vehicle.

Line 7 – A daytime contact number is needed in case there are any additional questions.

Line 8 -   This area is provided in case there are any other relevant details relating to this transaction.

Any false representation of the price is in violation of section 2921.13 of the Ohio Revised Code.  Violation of this section is punishable by six months imprisonment, a fine of up to $1,000, or both.