FAQs - Sales and Use Tax

Are auto auctioneers required to collect and remit sales tax?

Most auto auctioneers are only allowed to sell motor vehicles to other licensed motor vehicle dealers. Therefore, all sales should be for “resale” and exempt from Ohio sales and use tax.

However, individuals are allowed to attend and purchase at auctions of repossessed and salvage vehicles. At the time of auction, the vehicles are titled in the name of the financial institutions or insurance company. Titles are assigned to the winning bidder. The bidder is required to obtain title at any Ohio Clerk of Courts office. Tax is paid at the time of titling at the rate of the bidder’s county of residence. Tax is computed on the amount of the winning bid and any fees or commissions added by the auction.