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.

Does the winner of a raffle, contest or lottery owe any Ohio sales or use tax?

Raffle or Contest Winner

The winner of a raffle or contest does not owe Ohio sales or use tax, as he/she has not paid a “price” for the item received.  The sponsor of the raffle or contest, however, may be subject to Ohio sales or use tax.  The Department of Taxation requires the local clerk of courts to provide a copy of the MSO/title assigned to the winner of the raffle or contest and a copy of the title issued in the name of the winner. The Department will determine if the sponsor or contributor must pay sales or use tax.

Ohio Lottery Winner

The winner of a motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft or outboard motor (or any other item of tangible personal property) through one of the lottery games must take possession of the item won. The Ohio Lottery Commission purchases the item in the name of the lottery winner and taxes will be paid on the purchase price. If the item is required to be titled, taxes will be paid to the local Clerk of Courts by the dealer (lottery commissioner will pay the dealer the price of the vehicle and the tax as part of lottery prize payment) at the time the title is issued.

Does the winner of a raffle, contest or lottery owe any Ohio sales or use tax?

Raffle or Contest Winner

The winner of a raffle or contest does not owe Ohio sales or use tax, as he/she has not paid a “price” for the item received.  The sponsor of the raffle or contest, however, may be subject to Ohio sales or use tax.  The Department of Taxation requires the local clerk of courts to provide a copy of the MSO/title assigned to the winner of the raffle or contest and a copy of the title issued in the name of the winner. The Department will determine if the sponsor or contributor must pay sales or use tax.

Ohio Lottery Winner

The winner of a motor vehicle, all-purpose vehicle, off-highway motorcycle, watercraft or outboard motor (or any other item of tangible personal property) through one of the lottery games must take possession of the item won. The Ohio Lottery Commission purchases the item in the name of the lottery winner and taxes will be paid on the purchase price. If the item is required to be titled, taxes will be paid to the local Clerk of Courts by the dealer (lottery commissioner will pay the dealer the price of the vehicle and the tax as part of lottery prize payment) at the time the title is issued.