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 the manufacturer repurchases my motor vehicle, watercraft or outboard motor, pursuant to the lemon law, and replaces it with another vehicle, do I have to pay tax when applying for title on the second vehicle?

Yes. According to the lemon law, the manufacturer is required to refund to the purchaser the entire purchase price plus the sales tax. That refund is used to purchase the second motor vehicle, watercraft or outboard motor. Therefore, sales tax must be paid to the Clerk of Courts when obtaining title for the replacement item.

If the manufacturer has refunded the entire purchase price and sales tax, it is eligible to apply for a refund of the sales tax on the first purchase.