AUTO TITLE MANUAL - Franklin County, Ohio

K) Effective Aug. 1, 2007, sales to purchasers of motor vehicles that will be titled in
certain states became subject to the tax. These states are: Arizona, California, Florida,
Indiana, Massachusetts, Michigan, South Carolina, and Washington. (For more
information, please see Information Release ST 2007-04, Sales of Motor Vehicles to
Nonresidents of Ohio, issued August 2007.)
The exempt code NR was used to cover sales to all nonresidents, including sales to
dealers of other states. Since using the NR code could result in a taxable transaction, a
new code OD was created for use when a dealer of another state or country purchases a
motor vehicle or watercraft for resale. A dealer permit number should be indicated on the
exemption certificate completed by the dealer.
When a dealer will deliver a motor vehicle or watercraft to a point outside of Ohio, or to
an interstate carrier, that is a sale in interstate commerce. Code IS should be used. The
dealer will complete the exemption certificate, form STEC IC.
2. Are members of the armed services exempt from sales or use tax?
There is no true “statutory” exemption for members of the armed services. If the vehicle
is purchased in Ohio by a member of the armed services who is a resident of Ohio, Ohio
sales or use tax is due.
If the vehicle is purchased in Ohio by a member of the armed services who declares that
he/she is a resident of another state or country, but will be registering the vehicle for use
in Ohio while stationed here, Ohio sales or use tax is due.
If the vehicle is purchased in Ohio by a member of the armed services who declares that
he/she is not a resident of Ohio and that the vehicle will be immediately removed from
Ohio for titling and registration in the other state, Ohio sales or use tax is not due. A
nonresident affidavit must be provided by the purchaser. Use the ATPS exemption code
“NR: Nonresident affidavit – immediate removal.”
If the vehicle is purchased outside of Ohio by a member of the armed services who is a
resident of Ohio and the vehicle is to be driven in Ohio, Ohio sales or use tax is due.
If the vehicle is purchased outside of Ohio by a member of the armed services who is a
resident of Ohio and the vehicle is to be driven outside Ohio, the Ohio Supreme Court
has ruled that no Ohio sales or use tax is due. The Supreme Court did not indicate the
amount of time that a vehicle had to be driven outside of Ohio to qualify, so the
department has adopted the “six-month” rule in that the period of time must be more
than six months (as evidenced by a copy of the individual’s military orders indicating
out-of-state service for a period of at least six months after the purchase date). The
vehicle must be titled in the name of the military person. Use the ATPS exemption
code “CM: Conversion – military.”
If the vehicle is purchased outside of Ohio by a member of the armed services who is a
resident of Ohio and the vehicle is or is to be driven outside of Ohio for less than six