Vehicle Taxability - Watercraft

Watercraft and Outboard Motors

Watercraft and outboard motor sales are generally treated the same as motor vehicles.

  • Leases (PDF) —  This memo explains how to apply sales and use tax to a lease.
  • Motor vehicle sales to nonresidents (PDF) — Tax is due on motor vehicle sales to residents of other states if the other state charges sales tax to Ohio residents. Learn more here.

 

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.