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.

Can a manufacturer obtain title to a motor vehicle without paying sales tax when the vehicle was purchased back by the manufacturer pursuant to the lemon law?

Yes. When a manufacturer is required to buy back a motor vehicle, all-purpose vehicle or off-highway motorcycle from the consumer pursuant to the lemon law, it can obtain title without paying sales or use tax. The clerk of courts must obtain proof that the buy-back is pursuant to the lemon law.  The ATPS sales and use tax exemption code is “MB: Manufacturer buy-back – lemon law.”

Can a manufacturer obtain title to a motor vehicle without paying sales tax when the vehicle was purchased back by the manufacturer pursuant to the lemon law?

Yes. When a manufacturer is required to buy back a motor vehicle, all-purpose vehicle or off-highway motorcycle from the consumer pursuant to the lemon law, it can obtain title without paying sales or use tax. The clerk of courts must obtain proof that the buy-back is pursuant to the lemon law.  The ATPS sales and use tax exemption code is “MB: Manufacturer buy-back – lemon law.”