FAQs - Sales & Use Tax: Motor Vehicles & Watercraft

Can a motor vehicle dealer obtain title to a watercraft under a "resale" exemption?

Yes. A motor vehicle dealer may claim “Resale – watercraft” (RV) when the dealer acquires a watercraft, if it is acquired for purposes of resale. The dealer need only provide a valid vendor’s license for the dealership’s location (do not use the motor vehicle dealer’s permit number to support exemption). If the dealer uses the watercraft for personal use, a resale exemption should not be claimed and tax must be paid on either the price paid or the value given in trade for the watercraft.

When the dealer, who is not a licensed watercraft dealer, sells a watercraft, title must be obtained in the customer’s name. Sales tax must be collected. If the sale is to an Ohio resident, tax is collected at the rate in effect in the customer’s county of residence. The tax is paid to the Clerk of Courts when title is obtained. If the sale is to a nonresident of Ohio, tax is collected at the rate which is the lower between the Ohio rate in the dealer’s county, or the rate in the state of the customer. The customer must complete form ST WC AFF. The tax is submitted directly to the Department of Taxation on form ST WC NR, along with the completed ST WC AFF. A nonresident title may still be obtained from the Clerk of Courts.