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.

  

Can a dealer donate an item (motor vehicle, watercraft and/or outboard motor) to a nonprofit, charitable organization and avoid payment of tax?

Effective Sept. 21, 2006, pursuant to R.C. 5741.02(C)(9), a dealer that donates a motor vehicle, watercraft, or outboard motor to a nonprofit, charitable organization is not required to pay tax.  However, if a dealer transfers a vehicle for no consideration to a consumer not exempt under that provision, the dealer must pay use tax on the value of the vehicle. The tax base is the price paid by the dealer for the vehicle at the time of acquisition. If the dealer accepted the vehicle in trade, the amount the dealer allowed as a trade-in is the tax base.

For more information, please see the Information Release titled Motor Vehicles - Dealer Transfers for No Consideration, and Sales or Gifts to Nonprofit Organizations.

Can a dealer donate an item (motor vehicle, watercraft and/or outboard motor) to a nonprofit, charitable organization and avoid payment of tax?

Effective Sept. 21, 2006, pursuant to R.C. 5741.02(C)(9), a dealer that donates a motor vehicle, watercraft, or outboard motor to a nonprofit, charitable organization is not required to pay tax.  However, if a dealer transfers a vehicle for no consideration to a consumer not exempt under that provision, the dealer must pay use tax on the value of the vehicle. The tax base is the price paid by the dealer for the vehicle at the time of acquisition. If the dealer accepted the vehicle in trade, the amount the dealer allowed as a trade-in is the tax base.

For more information, please see the Information Release titled Motor Vehicles - Dealer Transfers for No Consideration, and Sales or Gifts to Nonprofit Organizations.

Can a dealer donate an item (motor vehicle, watercraft and/or outboard motor) to a nonprofit, charitable organization and avoid payment of tax?

Effective Sept. 21, 2006, pursuant to R.C. 5741.02(C)(9), a dealer that donates a motor vehicle, watercraft, or outboard motor to a nonprofit, charitable organization is not required to pay tax.  However, if a dealer transfers a vehicle for no consideration to a consumer not exempt under that provision, the dealer must pay use tax on the value of the vehicle. The tax base is the price paid by the dealer for the vehicle at the time of acquisition. If the dealer accepted the vehicle in trade, the amount the dealer allowed as a trade-in is the tax base.

For more information, please see the Information Release titled Motor Vehicles - Dealer Transfers for No Consideration, and Sales or Gifts to Nonprofit Organizations.