AUTO TITLE MANUAL - Franklin County, Ohio

However, individuals are allowed to attend and purchase at auctions of repossessed
vehicles. At the time of auction, the vehicles are titled in the name of the financial
institutions. 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.
40. What happens when a nonresident purchaser returns to Ohio?
When a nonresident purchases a motor vehicle from an Ohio dealer, the Ohio dealer is
required to obtain an Ohio title in the name of the purchaser. The purchaser is entitled to
claim exemption from Ohio sales and use tax by executing the nonresident affidavit.
Pursuant to Ohio law, the purchaser must immediately remove the vehicle from Ohio and
title and register the vehicle in the purchaser's resident state.
If the purchaser never removes the vehicle from Ohio or never title and registers the
vehicle in another state, Ohio tax would be due.
A nonresident purchaser may have paid some Ohio tax at the initial sale. Credit for that
tax paid will be allowed if the nonresident never removes the vehicle from Ohio or never
titles and registers the vehicle in another state.
**** Special Notes ****
If the purchaser has complied with these requirements and later returns to Ohio (more
than six months after date of purchase) to become an Ohio resident, the non-Ohio title
should be converted to an Ohio title under the ATPS exemption code of CV or CM.
If the purchaser has complied with these requirements and later returns to Ohio (less than
six months after date of purchase) to become an Ohio resident, the non-Ohio title should
be converted to an Ohio title but Ohio tax would be due. The purchaser should be given
credit for any sales or use or similar tax paid to this state or another state. (Note: The
purchaser cannot be given credit for sales or use or similar tax paid to another country.)
41. Can a used motor vehicle dealer purchase a new motor vehicle under the
"resale" exception?
Under Ohio tax laws, any person making retail sales may acquire items (including motor
vehicles) excepted from sales or use tax based on the “resale” exception. The problem is
obtaining an Ohio title, as motor vehicle law does not allow a used motor vehicle dealer
to acquire a new motor vehicle for purposes of resale.
If a used motor-vehicle dealer purchases a new motor vehicle, pays Ohio sales and use
tax when the Ohio title is obtained, and subsequently sells the vehicle with few, if any,
miles added to the odometer, we would entertain an application for refund of the taxes
paid by the dealer.