Vehicle Taxability - Leasing & Dealers

Leasing and Auto Dealer Transactions

When buying a vehicle from an auto dealer, there are many options available to the consumer.  Here we will provide information on how the sales tax applies to the different transactions that may occur.

 

Leases

A lease is any transfer of the possession or control of tangible personal property for a fixed or indefinite term, for consideration. Leases include future options to purchase or extend, and agreements where the amount of consideration may be increased or decreased by reference to the amount realized upon the sale or disposition of the property.

The link below will take you to a memo drafted by the Ohio Department of Taxation explaining how leases of motor vehicles are taxed.

Leasing Memo

 

Sales to Non-Residents of Ohio

Please see the Information Release for details.

 

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 in which you are interested.  A list of questions will appear pertaining to that category. Then click on the question you are inquiring about and the answer will appear.

How is tax paid on golf carts?

Generally, golf carts cannot be used on public highways and are not titled as motor vehicles. However, a municipality may pass an ordinance that allows the use of golf carts on public streets. A chief of police or county sheriff may designate certain public highways under their jurisdiction as eligible for golf cart use. If so, the chief of police or county sheriff sends notification to the Bureau of Motor Vehicles (BMV) and the BMV would provide a letter of authority to the clerk of courts with jurisdiction over the affected area. 

In such cases, the owner of a golf cart that is not currently used on public highways may want to obtain a title. The clerk of courts may issue the title without payment of the sales tax if the owner of the golf cart provides proof of tax paid at the time of the initial purchase.

Golf cart dealers are not required to have a dealer permit from the Ohio Department of Public Safety.  Such dealers must collect the tax and remit it to the state on their Ohio sales tax return, unless the purchaser has a statutory basis for claiming exception or exemption. If a title is requested, the clerk of courts may allow credit for the tax paid to the dealer, and collect the difference due, if any.

How is tax paid on golf carts?

Generally, golf carts cannot be used on public highways and are not titled as motor vehicles. However, a municipality may pass an ordinance that allows the use of golf carts on public streets. A chief of police or county sheriff may designate certain public highways under their jurisdiction as eligible for golf cart use. If so, the chief of police or county sheriff sends notification to the Bureau of Motor Vehicles (BMV) and the BMV would provide a letter of authority to the clerk of courts with jurisdiction over the affected area. 

In such cases, the owner of a golf cart that is not currently used on public highways may want to obtain a title. The clerk of courts may issue the title without payment of the sales tax if the owner of the golf cart provides proof of tax paid at the time of the initial purchase.

Golf cart dealers are not required to have a dealer permit from the Ohio Department of Public Safety.  Such dealers must collect the tax and remit it to the state on their Ohio sales tax return, unless the purchaser has a statutory basis for claiming exception or exemption. If a title is requested, the clerk of courts may allow credit for the tax paid to the dealer, and collect the difference due, if any.

How is tax paid on golf carts?

Generally, golf carts cannot be used on public highways and are not titled as motor vehicles. However, a municipality may pass an ordinance that allows the use of golf carts on public streets. A chief of police or county sheriff may designate certain public highways under their jurisdiction as eligible for golf cart use. If so, the chief of police or county sheriff sends notification to the Bureau of Motor Vehicles (BMV) and the BMV would provide a letter of authority to the clerk of courts with jurisdiction over the affected area. 

In such cases, the owner of a golf cart that is not currently used on public highways may want to obtain a title. The clerk of courts may issue the title without payment of the sales tax if the owner of the golf cart provides proof of tax paid at the time of the initial purchase.

Golf cart dealers are not required to have a dealer permit from the Ohio Department of Public Safety.  Such dealers must collect the tax and remit it to the state on their Ohio sales tax return, unless the purchaser has a statutory basis for claiming exception or exemption. If a title is requested, the clerk of courts may allow credit for the tax paid to the dealer, and collect the difference due, if any.