Can a motor vehicle dealer obtain title to a watercraft under a "resale" exemption?
Yes. A motor vehicle dealer may claim “Resale – watercraft” (RV) when the dealer acquires a watercraft, if it is acquired for purposes of resale. The dealer must provide a valid vendor’s license for the dealership’s location (not the motor vehicle dealer’s permit number). If the dealer uses the watercraft for personal use, it cannot claim resale and must pay tax on the price paid or the value given in trade for the watercraft.
When the dealer, who is not a licensed watercraft dealer, sells a watercraft, it must obtain title in the customer’s name and collect sales tax on the sale. If the sale is to an Ohio resident, the tax rate is the rate in effect in the customer’s county of residence. The dealer must pay the tax to the clerk of courts when title is obtained. If the sale is to a nonresident of Ohio, the dealer must collect tax at the lesser of the rate in effect at the Ohio dealer’s location or the rate in the state of the customer. The customer must complete form ST WC AFF. The dealer must remit the tax directly to the Department of Taxation on form ST WC NR, along with the completed ST WC AFF. A nonresident title may be obtained from the clerk of courts.
Can a motor vehicle dealer obtain title to a watercraft under a "resale" exemption?
Yes. A motor vehicle dealer may claim “Resale – watercraft” (RV) when the dealer acquires a watercraft, if it is acquired for purposes of resale. The dealer must provide a valid vendor’s license for the dealership’s location (not the motor vehicle dealer’s permit number). If the dealer uses the watercraft for personal use, it cannot claim resale and must pay tax on the price paid or the value given in trade for the watercraft.
When the dealer, who is not a licensed watercraft dealer, sells a watercraft, it must obtain title in the customer’s name and collect sales tax on the sale. If the sale is to an Ohio resident, the tax rate is the rate in effect in the customer’s county of residence. The dealer must pay the tax to the clerk of courts when title is obtained. If the sale is to a nonresident of Ohio, the dealer must collect tax at the lesser of the rate in effect at the Ohio dealer’s location or the rate in the state of the customer. The customer must complete form ST WC AFF. The dealer must remit the tax directly to the Department of Taxation on form ST WC NR, along with the completed ST WC AFF. A nonresident title may be obtained from the clerk of courts.
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