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.

Is mobility-enhancing equipment added to a motor vehicle subject to the sales or use tax?

Ohio law provides a sales tax exemption for sales of mobility-enhancing equipment, when made pursuant to a prescription and when such devices or equipment are used by a human being. “Mobility-enhancing equipment” means equipment, including repair and replacement parts for such equipment, that is primarily and customarily used to provide or increase the ability to move from one place to another and is appropriate for use either in a home or a motor vehicle, that is not generally used by persons with normal mobility, and that does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer.

The price for mobility-enhancing equipment sold with  a new motor vehicle MUST be separately stated from the price of the motor vehicle and other vehicle options. If not separately stated, the entire price of the motor vehicle is subject to tax.

If a mobility-enhanced modified motor vehicle is sold by a used vehicle dealer or as a casual sale (non-dealer sale), the price for the entire vehicle is subject to tax because the price of the mobility-enhancing equipment is not separately stated.

Is mobility-enhancing equipment added to a motor vehicle subject to the sales or use tax?

Ohio law provides a sales tax exemption for sales of mobility-enhancing equipment, when made pursuant to a prescription and when such devices or equipment are used by a human being. “Mobility-enhancing equipment” means equipment, including repair and replacement parts for such equipment, that is primarily and customarily used to provide or increase the ability to move from one place to another and is appropriate for use either in a home or a motor vehicle, that is not generally used by persons with normal mobility, and that does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer.

The price for mobility-enhancing equipment sold with  a new motor vehicle MUST be separately stated from the price of the motor vehicle and other vehicle options. If not separately stated, the entire price of the motor vehicle is subject to tax.

If a mobility-enhanced modified motor vehicle is sold by a used vehicle dealer or as a casual sale (non-dealer sale), the price for the entire vehicle is subject to tax because the price of the mobility-enhancing equipment is not separately stated.

Is mobility-enhancing equipment added to a motor vehicle subject to the sales or use tax?

Ohio law provides a sales tax exemption for sales of mobility-enhancing equipment, when made pursuant to a prescription and when such devices or equipment are used by a human being. “Mobility-enhancing equipment” means equipment, including repair and replacement parts for such equipment, that is primarily and customarily used to provide or increase the ability to move from one place to another and is appropriate for use either in a home or a motor vehicle, that is not generally used by persons with normal mobility, and that does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer.

The price for mobility-enhancing equipment sold with  a new motor vehicle MUST be separately stated from the price of the motor vehicle and other vehicle options. If not separately stated, the entire price of the motor vehicle is subject to tax.

If a mobility-enhanced modified motor vehicle is sold by a used vehicle dealer or as a casual sale (non-dealer sale), the price for the entire vehicle is subject to tax because the price of the mobility-enhancing equipment is not separately stated.