Vehicle Taxability

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.

When a motor vehicle title is transferred, the price of the vehicle is reported to a Clerk of Courts Title Office and sales tax is paid on the price of the vehicle.   

 

Key Resources

Casual Sales – These sales are defined as the transfer of a motor vehicle title between two individuals who are not affiliated with a licensed dealership. Learn more here.  

Exemptions & Taxability – Ohio law allows certain vehicle transactions to be made without paying sales tax. Find out more here.

Leasing & Dealer Transactions – This link is for licensed dealerships to obtain more information on the application of sales tax to their transactions including leases.   

Aircraft – The sale of an aircraft may be subject to sales tax. This page will provide additional resources regarding the taxability of aircraft.

Watercraft & Outboard Motors – The transfer of a watercraft or outboard motor is generally taxed in the same manner as motor vehicles. Get the information you need here.

Downloads – Forms, questionnaires, and additional resources can be found on this page. Please click on the download link in order to see a list of available forms to download.

Did you receive a letter from us?  - This link will provide more information on notices that are sent and how best to respond.

 

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.

What is included in the "price" of a motor vehicle when calculating the sales and use tax?What is included in the "price" of a motor vehicle when calculating the sales and use tax?What is included in the "price" of a motor vehicle when calculating the sales and use tax?What is included in the "price" of a motor vehicle when calculating the sales and use tax?Can you provide some examples of "consideration" other than money that is given in exchange for a certificate of title?Can you provide some examples of "consideration" other than money that is given in exchange for a certificate of title?Can you provide some examples of "consideration" other than money that is given in exchange for a certificate of title?Can you provide some examples of "consideration" other than money that is given in exchange for a certificate of title?Are sales between family members taxable?How is tax calculated on a trade?Can a third party purchase a leased vehicle without payment of sales and use tax twice?Can a third party purchase a leased vehicle without payment of sales and use tax twice?Can a third party purchase a leased vehicle without payment of sales and use tax twice?Is the consumer entitled to a tax credit for taxes paid to another state?Is the consumer entitled to a tax credit for taxes paid to another state?Is the consumer entitled to a tax credit for taxes paid to another state?I purchased a vehicle out of state and have since moved to Ohio. Do I owe sales tax?How are lease assumptions of motor vehicles and other tangible personal property taxed?How are lease assumptions of motor vehicles and other tangible personal property taxed?How are lease assumptions of motor vehicles and other tangible personal property taxed?Is sales tax due when I’m receiving the title of a vehicle due to divorce?I inherited a vehicle, do I owe sales tax?Is GAP taxable?Is GAP taxable?Is GAP taxable?How are title transfers between a business and its owner taxed?I received a vehicle as part of a purchase agreement for property (business or personal). The vehicle was listed as an asset and part of the agreement. Do I owe sales tax?Is mobility-enhancing equipment added to a motor vehicle subject to the sales or use tax?Is mobility-enhancing equipment added to a motor vehicle subject to the sales or use tax?Is mobility-enhancing equipment added to a motor vehicle subject to the sales or use tax?Are auto auctioneers required to collect and remit sales tax?Are auto auctioneers required to collect and remit sales tax?How is tax paid on golf carts?How is tax paid on golf carts?How is tax paid on golf carts?How is a utility trailer taxed and where is the tax paid?How is a utility trailer taxed and where is the tax paid?How is a utility trailer taxed and where is the tax paid?How do I obtain a refund if tax has been paid in error?Can you provide more examples of situations where there is no tax due on the transfer of title of a motor vehicle, all-purpose vehicle, off-highway motorcycle, titled watercraft, titled outboard motor, or titled personal watercraft?Can you provide more examples of situations where there is no tax due on the transfer of title of a motor vehicle, all-purpose vehicle, off-highway motorcycle, titled watercraft, titled outboard motor, or titled personal watercraft?I’m a non-resident of Ohio, but am attending school in Ohio. Am I exempt as a non-resident?Are members of the armed services exempt from sales or use tax?Are members of the armed services exempt from sales or use tax?When must the clerks of courts obtain an exemption certificate or completed forms T-610 or T-615? When must the clerks of courts obtain an exemption certificate or completed forms T-610 or T-615? Does the winner of a raffle, contest or lottery owe any Ohio sales or use tax?Does the winner of a raffle, contest or lottery owe any Ohio sales or use tax?Are court-ordered title transfers subject to the sales or use tax?Are court-ordered title transfers subject to the sales or use tax?Can the clergy of a church obtain a title in his/her name without paying sales or use tax?Can the clergy of a church obtain a title in his/her name without paying sales or use tax?Are farmers exempt from sales or use tax on vehicles that are licensed to operate on the highways?Are farmers exempt from sales or use tax on vehicles that are licensed to operate on the highways?Who is entitled to claim exemption from sales tax based on the "Highway Transportation for Hire" (TH) exemption?Who is entitled to claim exemption from sales tax based on the "Highway Transportation for Hire" (TH) exemption?Can a motor vehicle dealer obtain title to a watercraft under a "resale" exemption?Can a motor vehicle dealer obtain title to a watercraft under a "resale" exemption?Can a pawnbroker obtain title to a motor vehicle under a resale exemption?Can a pawnbroker obtain title to a motor vehicle under a resale exemption?Can the providers of taxable transportation services purchase motor vehicles such as taxicabs, limousines, or charter buses and be exempt from sales or use tax?Is sales and use tax due on a self-assembled motor vehicle or watercraft?Is sales and use tax due on a self-assembled motor vehicle or watercraft?Can an Ohio title be issued on a watercraft, outboard motor, or personal watercraft purchased in Ohio for use in Ohio by a resident of another state?Can an Ohio title be issued on a watercraft, outboard motor, or personal watercraft purchased in Ohio for use in Ohio by a resident of another state?Is an ambulance service entitled to claim exemption from sales and use tax under the "used directly in the rendition of a public utility service" exemption?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?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?If the manufacturer repurchases my motor vehicle, watercraft or outboard motor, pursuant to the lemon law, and replaces it with another vehicle, do I have to pay tax when applying for title on the second vehicle? I own a flight school. Are my aircraft purchases taxable?If the manufacturer repurchases my motor vehicle, watercraft or outboard motor, pursuant to the lemon law, and replaces it with another vehicle, do I have to pay tax when applying for title on the second vehicle? If the manufacturer repurchases my motor vehicle, watercraft or outboard motor, pursuant to the lemon law, and replaces it with another vehicle, do I have to pay tax when applying for title on the second vehicle? Can a dealer donate an item (motor vehicle, watercraft and/or outboard motor) to a nonprofit, charitable organization and avoid payment of tax?Can a dealer donate an item (motor vehicle, watercraft and/or outboard motor) to a nonprofit, charitable organization and avoid payment of tax?Can a dealer donate an item (motor vehicle, watercraft and/or outboard motor) to a nonprofit, charitable organization and avoid payment of tax?What happens when a nonresident purchaser returns to Ohio?Do rebates reduce the "price" for calculating sales or use tax? I purchased an aircraft. How do I pay the tax?How do I determine the proper amount of tax on an aircraft?My aircraft is deemed experimental by the FAA. Is my purchase taxable? My aircraft is not airworthy. Is my purchase taxable?I purchased my aircraft from a person who had purchased it new and paid sales tax in another state five years ago . The person had flown it for business and personal purposes. Is my purchase from him taxable?Are casual sales of aircraft exempt?I purchased my aircraft in another state. What is the tax treatment for this type of transaction?I received a bill for use tax on the purchase of an airplane I bought 3 years ago. I do not own the aircraft anymore. Do I still have to pay the tax?I purchased my aircraft in a kit and built it myself. How do I determine the “price” for purposes of calculating the use tax due?I traded my aircraft for another aircraft. Is this a taxable transaction?Is there a statue of limitations? Is the purchase of an aircraft subject to Ohio sales or use tax if it will be primarily used to rent to others? Is the purchase of an aircraft subject to Ohio sales or use tax if it will be primarily used to provide charter service?Is the purchase of an aircraft subject to Ohio sales or use tax if it will be primarily used to provide a transportation service as defined under R.C. 5739.01(B)(3)(s)? I traded my previous aircraft for another one at a dealership, does the trade in allowance reduce the taxable price?How are taxes calculated on a brokered watercraft sale?Does a trade-in reduce the price when calculating sales or use tax? Does a trade-in reduce the price when calculating sales or use tax? Does a trade-in reduce the price when calculating sales or use tax? Can a motor vehicle dealer obtain title to a watercraft under a "resale" exemption? How are leases taxed?How are leases taxed?What charges are taxable or not taxable on leases?What charges are taxable or not taxable on leases?I leased vehicle in Ohio and then moved to another state. Am I entitled to a refund of the up-front sales tax that was paid at the beginning of the lease?If the lease is terminated prior to the end of the lease term, is any of the sales tax paid refunded?If the lessee decides to purchase the leased property, what is the tax consequence?A lessor may advance tax to the lessee and finance the tax over the term of the lease. If this is done, is the repayment of the tax and any interest on that repayment subject to tax?How should tax be calculated on a lease with no definite term?A lease is consummated after January 31, 2002, between a lessor and lessee, both initially located outside Ohio in a state that taxes leases upfront. Thereafter the lessee brings the leased equipment into Ohio. How is the lease taxed in Ohio?Tangible personal property is leased in another state and subsequently brought into Ohio. How is the price of the leased property determined for purposes of sales and use tax?Does the assignment of a lease to a third party result in a new lease?If a motor vehicle dealer accepts cash down payments, must the motor vehicle dealer charge sales tax when the vehicle is to be leased? If yes, how is the tax paid? If a motor vehicle dealer accepts cash down payments, must the motor vehicle dealer charge sales tax when the vehicle is to be leased? If yes, how is the tax paid? Are out-of-state leasing dealers/companies required to be registered for collection of sales or use tax? Are out-of-state leasing dealers/companies required to be registered for collection of sales or use tax? If a motor vehicle is leased to an Ohio resident by an out of state dealer, how is the tax collected and remitted?If a motor vehicle is leased to an Ohio resident by an out of state dealer, how is the tax collected and remitted?Does a leasing company charge sales tax on the "sale" of its leased vehicles? If so, how is the tax paid to the State of Ohio? 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? Casual Sale VTSIQ206 Letter (Seller Inquiry)Casual Sale VTBIQ207 Letter (Buyer Inquiry)Casual Sale VTBTD217 Letter (Tax Due)Notice of AssessmentFarm Use Exemption Audit QuestionnaireFarm Use Exemption Audit Tax DueTransportation for Hire Exemption Audit QuestionnaireTransportation for Hire Exemption Audit Tax Due NoticeHow is negative equity taxed? What is a "new" motor vehicle for purposes of the trade-in allowance?What is a "new" motor vehicle for purposes of the trade-in allowance?If I purchase a vehicle at a local auto dealer and have the vehicle shipped out of the state or country, do I pay Ohio sales tax?If I purchase a vehicle at a local auto dealer and have the vehicle shipped out of the state or country, do I pay Ohio sales tax?Are auto dealers entitled to refunds when a vehicle is returned or repurchasedWho may pay tax to the clerks of courts net of the allowable vendor discount?Is a dealer required to title a “parts truck” and pay tax when the title is issued?Can a person trade in more than one motor vehicle on the purchase of a new motor vehicle and deduct the trade-in value of both vehicles?Can a used motor vehicle dealer purchase a new motor vehicle under the "resale" exception?What tax rate is charged on the sale or lease of motor vehicles, watercraft or outboard motors?What tax rate is charged on the sale or lease of motor vehicles, watercraft or outboard motors?Do dealer cash discounts reduce the price for calculating sales or use tax? Is the amount charged for the federal excise tax (FET) included in the tax base for calculating sales tax?As an auto dealer, when a purchaser is claiming exemption, what exemption forms should I use or accept?