AUTO TITLE MANUAL - Franklin County, Ohio

Failure to comply with all statutory reporting and payment requirements will subject the
dealer or broker to an assessment for the unreported or unpaid sales or use tax.
43. Can you provide more examples of situations where there is no tax due on the
transfer of title of a motor vehicle, all-purpose vehicle, off-highway motorcycle,
titled watercraft, titled outboard motor, or titled personal watercraft?
Here are some examples:
(A) Sales to an organization that has been granted and maintains 501(c)(3) status by the
Internal Revenue Service or is a not-for-profit organization operated exclusively for
charitable purposes in this state. (NP)
Note: A motor vehicle sold to any organization for use in the operation or carrying on of
a trade or business would be taxable.
(B) Sale in interstate commerce with delivery being made by the seller to a point outside
this state for use outside this state or delivered to an interstate carrier for delivery outside
of Ohio. (IS)
(C) Sale to a purchaser who is to use the motor vehicle as follows:
a. As transportation equipment, except those licensed to operate on the public highways,
to transport items in the process of production for sale by manufacturing, processing,
assembling or refining within a plant. (PT) (See Rule 5703-9-21, Ohio Adm. Code)
b. Directly in production of tangible personal property for sale by mining. Used prior to
the tipple or crusher, or in the construction, operation and maintenance of private power
lines to distribute electric energy for use in mining, whether licensed or not for highway
use. (Rule 5703-9-22, Ohio Adm. Code) (DM)
c. Directly in the exploration for or production of crude oil or natural gas. (DO)
d. Sale to a nonresident of this state upon presentation of an affidavit executed in this
state by the nonresident purchaser affirming that:
1) the purchaser is not a resident of this state,
2) that possession of the vehicle is taken in this state for the sole purpose of immediately
removing it from the state,
3) the resident state provides a nonresident motor vehicle exemption from their sales and
use tax law under which Ohio residents can purchase a vehicle and not be required to pay
sales or use tax, and
4) that the vehicle will be permanently titled and registered in another state and that it
will not be used in the State of Ohio. (NR)
Note: The sale of a motor vehicle consummated in Ohio to a nonresident member of the
Armed Forces stationed in Ohio is subject to Ohio sales or use tax. This type of
transaction does not qualify under the nonresident exemption because the vehicle will be
used in Ohio.
Another exception to the nonresident exemption would be the sale of a motor vehicle
consummated in Ohio to a nonresident student attending school in Ohio. In this case, the