Information Release

ST 2009-03 - Sales and Use Tax: Sourcing Chart – Issued December 2009 

This chart is intended as a reference for Ohio vendors and out-of-state sellers in determining the proper sourcing of their sales, leases, and rentals to Ohio consumers.

 

Ohio Sales and Use Tax

 

Sourcing Chart for Vendors and Sellers

 

TYPE OF TRANSACTION

 

SELLER SOURCES TRANSACTION TO

 

NOTES

         

Retail sale of tangible personal property made by an Ohio vendor to an Ohio consumer.

 

Vendor's location where the purchaser's order is received, regardless of location from which tangible personal property is shipped.

 

If vendor does not capture the location where the order is received, or if the order is received at a location outside Ohio, the sale is sourced to the location where the consumer (or the consumer's donee) receives the tangible personal property.

         

Retail sales of tangible personal property made in Ohio that are not made from a fixed location of the seller, such as vending machine sales, sales made from trucks or temporary locations, or sales made at temporary fairs, shows or exhibitions.

 

Location where the sale takes place.

   
         

Retail sales of taxable services by an Ohio service provider to an Ohio consumer when no tangible personal property is sold as part of the same transaction.

 

Location where the consumer, or the consumer's donee, receives the service

   
         

Sale of lodging in  hotel or motel.

 

Location of the hotel or motel where the lodging is provided.

   
         

Retail sale of tangible personal property or taxable services from outside Ohio to an Ohio consumer.

 

Location where the consumer, or the consumer's donee, receives the tangible personal property or service.

   
         

Lease of tangible personal property other than motor vehicles, aircraft, or "transportation equipment" as defined in R.C. 5739.033(H)(1) where the tax is accelerated.

 

The location where the consumer (or the consumer's donee) receives the leased property.  Any subsequent taxable charges would be sourced to the primary property location at the time the charges are incurred.

 

R.C. 5739.033(I)(3) defines "primary property location" as "an address for tangible personal property provided by the lessee or renter that is available to the lessor from its records maintained in the ordinary course of business, when that address does not constitute bad faith."  The primary property location is not affected by intermittent use of the property at different locations.  For example, portable business property that employees take with them on business trips would have its primary location at the employee's post of duty, not the various locations of the business trips.

         

Lease of tangible personal property other than motor vehicles, aircraft, or "transportation equipment" as defined in R.C. 5739.033(H)(1) where the tax is not accelerated.

 

The location where the lessee (or the lessee's donee) receives the leased property, for the initial installment.  The primary property location for the period covered by the installment for subsequent installments.

   
         

Lease of "transportation equipment" as defined in R.C. 5739.033(H)(1)

 

The location where the lessee (or the lessee's donee) receives the leased property.

 

R.C. 5739.033(H)(1) defines “transportation equipment” as: a) Locomotives and railcars that are utilized for the carriage of persons or property in interstate commerce, (b) Trucks and truck-tractors with a gross vehicle weight rating of greater than ten thousand pounds, trailers, semi-trailers, or passenger buses that are registered through the international registration plan and are operated under authority of a carrier authorized and certificated by the United States department of transportation or another federal authority to engage in the carriage of persons or property in interstate commerce, (c) Aircraft that are operated by air carriers authorized and certificated by the United States department of transportation or another federal authority to engage in the carriage of persons or property in interstate or foreign commerce, and (d) Containers designed for use on and component parts attached to or secured on the items set forth above.

         

Lease of motor vehicles or aircraft that are not "transportation equipment" as defined in R.C. 5739.033(H)(1) where the tax is accelerated.

 

The primary property location at the time the lease or rental is consummated.  Any subsequent taxable charges would be sourced to the primary property location at the time the charges are incurred.

   
         

Lease of motor vehicles or aircraft that are not "transportation equipment" as defined in R.C. 5739.033(H)(1) where the tax is not accelerated.

 

The primary property location for the period covered by each installment.