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.

Farm Use Exemption Audit Questionnaire

If you have claimed an exemption from the sales tax of a vehicle due to using it primarily in farming, you will receive this questionnaire requesting information on the usage and requesting supporting documents.

How do I respond?

You may pay the additional tax without interest or penalty by check or money order made payable to Ohio Treasurer of State. All payments should be mailed with a copy of the notice to:

        Ohio Department of Taxation

        PO Box 182048

        Columbus, OH 43218-2048

To support your claim of the exemption:

1. Complete the questionnaire by placing the numerical percentage on the line next to each activity for which the vehicle is used (i.e., 10%, 20%, etc.).  The total of all percentages must equal 100%.

2. Send a copy of the first page of your most recently filed Federal Income Tax Return (1040, 1065, or 1120).

3. Send a copy of Schedule F (Profit or Loss from Farming) that was filed with your federal return.

Note:  All three pieces of the above information must be received in order to review your exemption claim.  If any item is missing, your transaction will be deemed taxable.

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.