ST 1982-01 - Documentary Fees -Updated November, 2004 UPDATED
- Supersedes Information Release Dated January 29, 1982
This department was contacted by the Ohio Auto Dealers
Association regarding a “documentary fee” charge being made
by some auto dealers.
Based on the explanation given by this Association that this
is an additional charge to the customer for various services
such as paper work, title runners expenses, costs incurred in
making financial arrangements, etc., they were advised that
these charges are part of the tax base and subject to the
sales tax. Such charges are considered within the definition
of price and part of the income from the sale of the motor
vehicle.
5739.01(H)(1)(a) Ohio Revised Code states in part:
(H)(1)(a) “Price”, except as provided in divisions (H)(2) and
(3) of this section, means the total amount of consideration,
including cash, credit, property, and services, for which
tangible personal property or services are sold, leased, or
rented, valued in money, whether received in money or
otherwise, without any deduction for any of the following…:
(iii) Charges by the vendor for any services necessary to
complete the sale;
The charges for notary and title fees, which are separately
stated on the customers' invoice, are not subject to the tax.
If you have any questions regarding this matter, please
contact one of our Taxpayer Services Centers at
1-888-405-4039, or e-mail us through our website at
tax.ohio.gov.
OHIO RELAY SERVICES FOR THE
HEARING AND SPEECH IMPAIRED
Telephone: 1-800-750-0750