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 are leases taxed?

 

Lease Charges NOT Subject to Tax

Lease Charges Subject to Tax

· Credit life and disability insurance premiums

· Late charges for payments made after the due date

· Collection/repossession fees

· Assumption fees billed a lessee when the lease is assumed by another lessee

· Legal fees incurred by a lessor for collection proceedings against the lessee

· Interim interest billed the lessee on a loan granted by the lessor prior to lease inception

· Motor vehicle registration fees

· “Noninsurance” fees charged to a lessee that fails to document adequate insurance

· NSF (bad check) fees

· ACH Debit fees

· Parking ticket fees assessed on the leased vehicle and billed to the lessee

 

- Luxury taxes

· Acquisition fees

· “GAP” or “reverse equity” fees

· Disposition fees determined at lease termination

· Property taxes

· Payment or lease extension fees

· Rewrite fees

· Federal excise taxes levied on the lessor

· Administration fees

· Maintenance fees

· UCC search fees

· Title search fees

· Excess wear or mileage fees

· Turn in fees

· Other or miscellaneous fees

· Federal highway use tax levied on the lessor

· Lien fees, fees for filing a lien against the leased property, when contractually levied on and paid by the lessor but passed on to the lessee

 

 

How are leases taxed?

 

Lease Charges NOT Subject to Tax

Lease Charges Subject to Tax

· Credit life and disability insurance premiums

· Late charges for payments made after the due date

· Collection/repossession fees

· Assumption fees billed a lessee when the lease is assumed by another lessee

· Legal fees incurred by a lessor for collection proceedings against the lessee

· Interim interest billed the lessee on a loan granted by the lessor prior to lease inception

· Motor vehicle registration fees

· “Noninsurance” fees charged to a lessee that fails to document adequate insurance

· NSF (bad check) fees

· ACH Debit fees

· Parking ticket fees assessed on the leased vehicle and billed to the lessee

 

- Luxury taxes

· Acquisition fees

· “GAP” or “reverse equity” fees

· Disposition fees determined at lease termination

· Property taxes

· Payment or lease extension fees

· Rewrite fees

· Federal excise taxes levied on the lessor

· Administration fees

· Maintenance fees

· UCC search fees

· Title search fees

· Excess wear or mileage fees

· Turn in fees

· Other or miscellaneous fees

· Federal highway use tax levied on the lessor

· Lien fees, fees for filing a lien against the leased property, when contractually levied on and paid by the lessor but passed on to the lessee