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.

  

Are out-of-state leasing dealers/companies required to be registered for collection of sales or use tax?

Yes. Out-of-state leasing dealers/companies are required to be registered with the Department of Taxation, but they may not be required to have a leasing dealer’s permit (LD#) from the Bureau of Motor Vehicles. To title these vehicles in the leasing dealer’s name, use the ATPS exemption code: “RO: Resale – out-of-state leasing.” ATPS will require a valid Ohio use tax account number (99-XXXXXX) before it will proceed with issuing a title without collecting use tax.

Note: This could apply to watercraft and outboard motors.

If the out-of-state leasing dealer has a leasing dealer’s permit issued by the Bureau of Motor Vehicles, you would use the exemption code “RL: Resale – leasing” and you would use the leasing dealer’s permit number and the Ohio use tax account number (99-XXXXXX).

For information on obtaining an out-of-state seller’s vendor license, please visit our Web site at License and Filing Requirements.

Are out-of-state leasing dealers/companies required to be registered for collection of sales or use tax?

Yes. Out-of-state leasing dealers/companies are required to be registered with the Department of Taxation, but they may not be required to have a leasing dealer’s permit (LD#) from the Bureau of Motor Vehicles. To title these vehicles in the leasing dealer’s name, use the ATPS exemption code: “RO: Resale – out-of-state leasing.” ATPS will require a valid Ohio use tax account number (99-XXXXXX) before it will proceed with issuing a title without collecting use tax.

Note: This could apply to watercraft and outboard motors.

If the out-of-state leasing dealer has a leasing dealer’s permit issued by the Bureau of Motor Vehicles, you would use the exemption code “RL: Resale – leasing” and you would use the leasing dealer’s permit number and the Ohio use tax account number (99-XXXXXX).

For information on obtaining an out-of-state seller’s vendor license, please visit our Web site at License and Filing Requirements.