Frequently Asked Questions

The Ohio Department of Taxation has compiled a list of frequently asked questions covering many different categories.

To view the questions, click on the "Select Category" bar and then click on the category you are interested in. A list of questions will appear pertaining to that category. Then click on the question you are inquiring about and the answer will appear.

If a customer is allowed to use a rented motor vehicle paid for by a motor vehicle dealer while their vehicle is being repaired or serviced at or through the motor vehicle dealer’s location and the repair is covered by a provision in a warranty, service contract, maintenance agreement, or other contract or agreement, but the contract or agreement does not specifically provide for the use of a vehicle, does the customer, dealer, or owner of the rented vehicle owe sales or use tax for the rented vehicle?

 If all of the following apply, then no sales or use tax is due:

(1)    The dealer pays the owner of the rented vehicle for its use; 

(2)    The dealer is providing the rented motor vehicle because the customer’s motor vehicle is being repaired or serviced pursuant to an agreement of the manufacturer, warrantor, administrator, or other obligor; and

(3)    The dealer receives reimbursement for the cost of the rental vehicle from the manufacturer, warrantor, administrator, or other obligor.

If a customer is allowed to use a rented motor vehicle paid for by a motor vehicle dealer while their vehicle is being repaired or serviced at or through the motor vehicle dealer’s location and the repair is covered by a provision in a warranty, service contract, maintenance agreement, or other contract or agreement, but the contract or agreement does not specifically provide for the use of a vehicle, does the customer, dealer, or owner of the rented vehicle owe sales or use tax for the rented vehicle?

 If all of the following apply, then no sales or use tax is due:

(1)    The dealer pays the owner of the rented vehicle for its use; 

(2)    The dealer is providing the rented motor vehicle because the customer’s motor vehicle is being repaired or serviced pursuant to an agreement of the manufacturer, warrantor, administrator, or other obligor; and

(3)    The dealer receives reimbursement for the cost of the rental vehicle from the manufacturer, warrantor, administrator, or other obligor.

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