FAQs - Sales and Use Tax

If a motor vehicle is leased to an Ohio resident by an out of state dealer, how is the tax collected and remitted?

An out of state dealer would charge and collect the tax on the basis as an in-state dealer, that is, on the entire amount the customer would pay over the term of the lease. The tax can be remitted to Ohio in one of two ways.

(1) If the out of state dealer makes frequent leases to Ohio customers, the dealer should register for an Ohio Seller’s Use Tax account on form UT-1000. The tax will be paid when filing sales tax return UST-1.

(2) If the dealer seldom leases a vehicle to Ohio residents, the dealer may submit a copy of the lease agreement, and a check for the tax made payable to Treasurer, State of Ohio. Send both to: Ohio Department of Taxation, Sales Tax Division, P.O. Box 530, Columbus, OH 43216-0530.