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.

Can the providers of transportation services claim exemption from the sales or use tax on the purchase of motor vehicles such as taxicabs, limousines, or charter buses?

Taxicab companies are licensed by a local government entity (county, township or municipality) to provide pick-up and delivery of individuals. These companies must provide their service as demanded by the general public. If they refuse to provide their service when demanded and a complaint is filed with the regulating entity, they could lose their authority to operate. Also, as part of the general local government regulations, these companies are only allowed to pick-up individuals within a specified geographical area and their service fees are negotiated and set by the regulating entity. Taxis in the name of the taxicab company should use the PU (public utility) code.

While limousines services may be somewhat regulated by a local government entity (county, township or municipality) to provide safe and reliable pick-up and delivery service of individuals, they are not regulated to the same extent as are taxicab companies. There is no requirement that they must provide their services as demanded by the general public. Also, they are free to pick up individuals almost anywhere and they can charge any service fee that the public is willing to pay. Therefore, they are not considered to be rendering a public utility service and are not entitled to claim the sales/use tax exemption code PU. However, see below for an exemption that may be available.

Effective Aug. 1, 2003, House Bill 95 enacted a new exemption for transportation services under 5739.02 (B)(41). It states that the tax does not apply to “sales to a person providing services under division (B)(3)(r) of section 5739.01 of the Revised Code of tangible personal property and services used directly and primarily in providing taxable services under that section.” The new exemption is available for purchases made on or after Aug. 1, 2003. Examples of the types of vehicles that could be using this code are taxis, limousines and charter buses. Taxis that are titled in the name of a person should use the TS code. The TS code should be used when you are provided a properly completed exemption certificate that states, “Used directly and primarily in providing taxable intrastate transportation services as provided in 5739.01 (B)(3)(r).” A vendor license number must be provided on the exemption certificate and in ATPS.