Vehicle Taxability & Exemptions

Taxability & Exemptions of Motor Vehicles

All sales of motor vehicle are subject to sales or use tax unless an exemption applies.  The tax rate charged is based on the county of the purchaser’s residence.  While  other items may be exempted as a casual sale, the resale of a used motor vehicle is not eligible for this exemption.  

Did you receive a notice from us? 

The definition of a Casual Sale is found in R.C. 5739.01(L).

The application of Sales and Use tax to a casual sale can be referenced in R.C. 5739.02(B)(8)

What is an exemption?

An exemption is a statutory reason that a retail sale is not subject to  sales or use tax. This page discusses exemptions that may apply to motor vehicle transfers.

 

A few examples of exemptions for motor vehicles:

Direct FarmingFarming –Motor vehicles  used primarily in the production of agricultural products for sale may be exempt under R.C. 5739.02(B)(17)

Transportation for Hire – Motor vehicles used primarily in transporting tangible personal property for others may be exempt under R.C. 5739.02(B)(32)

Nonprofit Organizations & Churches – Purchases of motor vehicles by nonprofit charitable organizations and churches may be exempt if the vehicle is purchased by and titled in the name of the organization.  R.C. 5739.02(B)(12)

Transportation Services and Public Utilities  – Vehicles   primarily used to provide taxable transportation services,  such as taxicabs or charter services.  Note—the purchaser  is required to have a vendor’s license and remit sales tax on its taxable transportation services.  R.C. 5739.02(B)(41)

What other vehicle purchases are exempt from the sales and use tax?

Find the answer on our Exemptions Definitions page.

 

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.

  

When must the clerks of courts obtain an exemption certificate or completed forms T-610 or T-615?

The clerk must obtain exemption certificates on all dealer title transfers of retail sales and forms T-610/T-615 on casual (non-dealer) title transfers if the purchaser claims one of the below exceptions/exemptions supported by an ATPS exemption code. Note: If taxes are paid on a title transfer, no exemption certificate or form T-610/T-615 is needed.

CF Commercial fishing – watercraft – commercial fishing license required
CH Church
CM Conversion – military (purchased out-of-state for use out-of-state)
CS Consolidation
DF Direct use – farming
DM Direct use – mining
DO Direct use – oil and gas
DR Research and development
DS Dissolution to stockholder with no consideration
FD Foreign diplomat – exemption card required
IS Sale of a motor vehicle as interstate commerce
IP Individual to partnership with no consideration
MO Manufacturing operation – i.e., cement mixer
MR Corporate merger with no consideration
NP Nonprofit, charitable
NR Nonresident affidavit
OD Sale of a motor vehicle/watercraft to an out-of-state dealer
PD Partnership, dissolution with no consideration
PT Nonlicensed production transportation
PU Direct use in a public utility service
RD Resale – demonstrator (dealer permit and VL required)
RI Resale – implement/equipment dealer
RM Remanufacturing – chassis or part
RS Redeemed – return sale
RV Resale – watercraft (VL required)
RW Resale – wholesale only
TH Highway transportation for hire (PUCO or ICC permit number required)
TS Transportation services (VL required)
UM Undisturbed mortgage
VF Volunteer fire department – contract basis
WH Warehousing – not licensed for highway use

When must the clerks of courts obtain an exemption certificate or completed forms T-610 or T-615?

The clerk must obtain exemption certificates on all dealer title transfers of retail sales and forms T-610/T-615 on casual (non-dealer) title transfers if the purchaser claims one of the below exceptions/exemptions supported by an ATPS exemption code. Note: If taxes are paid on a title transfer, no exemption certificate or form T-610/T-615 is needed.

CF Commercial fishing – watercraft – commercial fishing license required
CH Church
CM Conversion – military (purchased out-of-state for use out-of-state)
CS Consolidation
DF Direct use – farming
DM Direct use – mining
DO Direct use – oil and gas
DR Research and development
DS Dissolution to stockholder with no consideration
FD Foreign diplomat – exemption card required
IS Sale of a motor vehicle as interstate commerce
IP Individual to partnership with no consideration
MO Manufacturing operation – i.e., cement mixer
MR Corporate merger with no consideration
NP Nonprofit, charitable
NR Nonresident affidavit
OD Sale of a motor vehicle/watercraft to an out-of-state dealer
PD Partnership, dissolution with no consideration
PT Nonlicensed production transportation
PU Direct use in a public utility service
RD Resale – demonstrator (dealer permit and VL required)
RI Resale – implement/equipment dealer
RM Remanufacturing – chassis or part
RS Redeemed – return sale
RV Resale – watercraft (VL required)
RW Resale – wholesale only
TH Highway transportation for hire (PUCO or ICC permit number required)
TS Transportation services (VL required)
UM Undisturbed mortgage
VF Volunteer fire department – contract basis
WH Warehousing – not licensed for highway use