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.

  

How do I obtain a refund if tax has been paid in error?

You must submit an application for sales or use tax refund (form ST-AR) as well as the supporting schedule (ST-AR-S) for vendor-filed claims. You must also submit copies of any documents that are necessary to support your application for refund (e.g., receipts issued by the clerk of courts, titles issued by the clerk of courts, retail buyer’s agreements or invoices, proof that the entire purchase price was returned, etc.) See form ST-AR-S for more details. These forms are available on our Web site at Tax Forms (search under "Sales Tax").

***Special Note on Leased Vehicles Moved Out of State***

There is no refund allowed for sales tax paid upfront on a motor vehicle when the lessee subsequently removes the vehicle from Ohio. Refunds are allowed on tax paid on leased motor vehicles only if the lessee returns the vehicle and is reimbursed for all amounts paid on the transaction, or the vehicle is otherwise used in an exempt manner.