Information Release

ST 1995-10 - 5741.01(G)(5) - Price Current Value of Tangible Personal Property Purchased for Use Outside This State and Becomes Permanently Located in This State More Than Six Months After Its Acquisition by the Consumer - April, 1995

This is to clarify the Department of Taxation's position on acceptable methods that may be used to determine the current value of tangible personal property that has been purchased and used by the consumer outside this state and becomes permanently used, stored, or otherwise consumed in this state more than six months after its acquisition by the consumer.

Division 5741.01(G)(5) of the Revised Code provides that:

  • "In the case of tangible personal property originally purchased and used by the consumer outside this state, and that becomes permanently stored, used, or otherwise consumed in this state more than six months after its acquisition by the consumer, the consumer or the tax commissioner may determine the price based on the current value of such tangible personal property, in lieu of determining the price pursuant to division (G)(1) of this section. A price determination made by the consumer is subject to review and redetermination by the commissioner."

The current value of such items purchased and used outside this State that become located in this state should be calculated by using one of the following acceptable methods:

FOR ALL ITEMS, EXCEPT MOTOR VEHICLES, TITLED WATERCRAFT, AND TITLED OUTBOARD MOTORS

1. The original purchase price may be subjected to the true value computation (TVC) based on Ohio's personal property tax tables to arrive at the current value of the item. (Instruction booklet for the true value computation for Ohio Personal Property Tax is available at any office of the Ohio Department of Taxation or in the County Auditor's office in any Ohio county.)

Example: $75000 bulldozer 2 years old at time of relocation to Ohio

Class V listing

$75,000 X 88.9% (from TVC)

$66,675.00 value ("price") of bulldozer at time of relocation

OR

2. The current value may be reflected in a fair market value as determined by research. Factors may include appraisal, insured value, and/or other relevant factors.

MOTOR VEHICLES, TITLED WATERCRAFT, OR TITLED OUTBOARD MOTORS

In the case of a motor vehicle, titled watercraft and/or outboard motor, as defined by the Ohio Revised Code, that becomes permanently located in this state, the following determinations will apply when conversion titles are issued:

THE CURRENT VALUE WOULD BE EQUAL TO;

1. The average retail value for the year, make, and model of a comparably equipped item as depicted in a value guide current at the time of relocation.

OR

2. The appraised retail value at the time of relocation as determined by an appraiser of items (dealership, insurance adjuster, etc.).

OR

3. The retail value at the time of relocation determined by a comparative analysis of similar items advertised for sale in the same locality.

**** SPECIAL NOTE ****

In every case where tangible personal property becomes located in this state, the amount of Ohio tax due would be offset by the amount of sales or use tax legally levied by and paid to another jurisdiction (state). If the sales or use tax legally paid to another jurisdiction (state) is equal to or greater than the Ohio tax calculated on current value, as determined above, no additional tax is due to the State of Ohio. The tax rate to be used to calculate the amount of Ohio use tax due is the total tax rate in effect in the county where the item is located at the time of relocation.

If you have any questions regarding this matter, you should call us at 1-888-405-4039.

OHIO RELAY SERVICES FOR
THE HEARING OR SPEECH IMPAIRED
Phone: 1-800-750-0750