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 sales and use tax due on a self-assembled motor vehicle or watercraft?

No, if the purchaser shows proof that he or she paid sales tax on all parts used to assemble the vehicle or watercraft, then no sales or use tax is due.  The self-assembled exemption code is SA.

 

Yes, if the purchaser fails to prove that sales tax was paid on all or some of the parts, then sales and/or use tax is due.  In that case, the tax due is based on the total amount paid for all parts, with credit given for any tax paid. The clerk must collect the balance due when the title is issued.

Is sales and use tax due on a self-assembled motor vehicle or watercraft?

No, if the purchaser shows proof that he or she paid sales tax on all parts used to assemble the vehicle or watercraft, then no sales or use tax is due.  The self-assembled exemption code is SA.

 

Yes, if the purchaser fails to prove that sales tax was paid on all or some of the parts, then sales and/or use tax is due.  In that case, the tax due is based on the total amount paid for all parts, with credit given for any tax paid. The clerk must collect the balance due when the title is issued.