FAQs - Sales & Use Tax: Motor Vehicles & Watercraft

What happens when a nonresident purchaser returns to Ohio?

When a nonresident purchases a motor vehicle from an Ohio dealer, the Ohio dealer is required to obtain an Ohio title in the name of the purchaser. The purchaser is entitled to claim exemption from Ohio sales and use tax by executing the nonresident affidavit. Pursuant to Ohio law, the purchaser must immediately remove the vehicle from Ohio and title and register the vehicle in the purchaser's resident state.

If the purchaser never removes the vehicle from Ohio or never title and registers the vehicle in another state, Ohio tax would be due.

A nonresident purchaser may have paid some Ohio tax at the initial sale. Credit for that tax paid will be allowed if the nonresident never removes the vehicle from Ohio or never titles and registers the vehicle in another state.

**** Special Notes ****

If the purchaser has complied with these requirements and later returns to Ohio (more than six months after date of purchase) to become an Ohio resident, the non-Ohio title should be converted to an Ohio title under the ATPS exemption code of CV or CM.

If the purchaser has complied with these requirements and later returns to Ohio (less than six months after date of purchase) to become an Ohio resident, the non-Ohio title should be converted to an Ohio title but Ohio tax would be due. The purchaser should be given credit for any sales or use or similar tax paid to this state or another state. (Note: The purchaser cannot be given credit for sales or use or similar tax paid to another country.)