ST 1998-02 - Dealer/Broker Watercraft Sales -
Revised September, 1998
This will reiterate the Department's position that the sale
of watercraft, outboard motors and parts thereof made by boat
dealers and/or brokers are deemed to be sales subject to the
sales or use tax regardless of who holds title to such
watercraft, outboard motors or parts prior to the sale.
Tax Commissioner Rule 5703-9-40, dated February 24, 1965,
reads as follows:
"Persons engaged in the business of selling tangible
personal property who are authorized, engaged or employed
to sell tangible personal property belonging to another
are the vendors of such tangible personal property and
shall be responsible for the proper collection and
remittance of the sales tax with respect to such sales.
Persons engaged in the business of selling tangible
personal property shall include persons who hold
themselves out to the public as conducting a business
regardless of whether the merchandise sold is owned by
them or by other persons who have authorized, engaged or
employed them to sell tangible personal property."
Therefore, persons who represent themselves as dealers and/or
brokers and make sales of tangible personal property on their
own behalf or on behalf of others must collect the tax on all
such sales unless otherwise exempted. Such dealers and/or
brokers are required to be properly licensed with Ohio for
the collection and remittance of tax. Tax must be paid as
follows:
- On titled watercraft and/or outboard motors, the
dealer/broker will remit the proper amount of tax [net of
discount when the dealer/broker has a vendor's license or an
out-of-state seller's registration (99-??????)] to the Clerk
of Courts for the purchaser's county of residence.
- On watercraft that are not required to be titled,
documented watercraft or accessories and parts, the
dealer/broker will remit the proper amount of tax to the
Treasurer of State on the Department's tax return. This
remittance will be net of discount if the return is timely
filed and the amount of tax that is due is paid in full.
Failure to comply with all statutory reporting and payment
requirements will subject the dealer or broker to an
assessment for the unreported or unpaid sales or use tax.
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