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.

Is an out-of-state leasing company required to register with the Ohio Department of Taxation as a seller (account number 99-XXXXXX) if all of its customers are residents of other states or countries?

No, the out-of-state leasing company should complete the nonresident affidavit and the clerk of courts will issue an Ohio title using the OD out-of-state dealer exemption code.  If the lessee later moves to Ohio or the leasing company starts leasing to Ohio residents, the leasing company MUST register with the Ohio Department of Taxation.