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.

  

Casual Sale OM 12-F or WC 12-F

This letter is sent to the buyer of the watercraft or outboard motor when there has not been a response to notices MV 12-C or MV 12-D. An amount of tax based on the average purchase price of a similar watercraft or outboard motor has been calculated and listed on the letter.

How do I respond?

You may pay the additional tax without interest or penalty by check or money order made payable to Ohio Treasurer of State. All payments need to be mailed with a copy of the notice to:

        Ohio Department of Taxation

        PO Box 182048

        Columbus, OH 43218-2048

If you disagree with the actual purchase price on the letter, you must provide written proof (i.e., statement from the seller, bill of sale, copy of cancelled check, detailed explanation of the purchase price) of the correct purchase price. Include a copy of your notice when replying with additional information. All responses will be reviewed on a case-by-case basis to determine validity.

Any false representation of the price is in violation of section 2921.13 of the Ohio Revised Code.  Violation of this section is punishable by six months imprisonment, a fine of up to $1,000, or both.

Failure to respond by the date given on the letter will result in the issuance of an assessment.  The assessment will be issued for the tax on the notice, interest, and applicable penalty.