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.

  

What happens when a nonresident purchaser returns to Ohio?

When a nonresident purchases a motor vehicle from an Ohio dealer, the Ohio dealer is required to obtain an Ohio title in the name of the purchaser. The purchaser may claim exemption from Ohio sales and use tax by executing the nonresident affidavit. Under Ohio law, the purchaser must immediately remove the vehicle from Ohio and title and register the vehicle in the purchaser's resident state.

If the purchaser fails to remove the vehicle from Ohio or does not title and register the vehicle in another state, Ohio tax is due.  Credit is allowed for tax legally paid to another state.

**** Special Note ****

If the purchaser complied with these requirements and later returns to Ohio (more than six months after date of purchase), the non-Ohio title should be converted to an Ohio title under the ATPS exemption code of CV or CM.

If the purchaser has complied with these requirements and later returns to Ohio (less than six months after date of purchase), the non-Ohio title should be converted to an Ohio title but Ohio tax is due.  Credit is given for any sales or use tax legally paid to another state. (Note: No credit is given for sales or use or similar tax paid to a foreign country.)