Ohio car sales tax question

[RZehr]

If an Ohio resident buys a used car in Oregon (which has no sales tax), and ships it to Ohio and licenses and registers it in Ohio, what are the associated sales tax and fees that the Ohio resident pays?

Does the Ohio resident save any money buying this from out of state?

Is there any tax or registration cost advantage for an Ohioan to buy a slightly used vehicle for say $50,000 from out of state, versus buying the same vehicle brand new in Ohio, for the same amount of money?

[Neto]

If an Ohio resident buys a used car in Oregon (which has no sales tax), and ships it to Ohio and licenses and registers it in Ohio, what are the associated sales tax and fees that the Ohio resident pays?

Does the Ohio resident save any money buying this from out of state?

Is there any tax or registration cost advantage for an Ohioan to buy a slightly used vehicle for say $50,000 from out of state, versus buying the same vehicle brand new in Ohio, for the same amount of money?

When we purchased a vehicle in Florida, the car lot there did not charge sales tax, but we paid it when we registered it in Ohio. The same is true within the state of Ohio. If you purchase a vehicle in a county that has a lower sales tax rate, you will be charged the rate set in your own county of residence. Other products don't work that way, say like I purchase a generator or some other large item in a neighboring county, THAT county gets the sales tax, not my county of residence. But a trailer would also go by the county of residence (if I tag it for non-farm use).

[Josh]

If an Ohio resident buys a used car in Oregon (which has no sales tax), and ships it to Ohio and licenses and registers it in Ohio, what are the associated sales tax and fees that the Ohio resident pays?

Does the Ohio resident save any money buying this from out of state?

Is there any tax or registration cost advantage for an Ohioan to buy a slightly used vehicle for say $50,000 from out of state, versus buying the same vehicle brand new in Ohio, for the same amount of money?

They pay the Ohio sales tax when they go to register their car.

If they buy a used car they pay the sales tax based on the used car price.

It is customary in Ohio to leave the purchase price blank, and the buyer fills in a number they feel is the purchase price. (You may consult your nearest priest to discuss the ethics of this.) If this number is too low, the registrant will get a letter informing them of the price the state thinks was actually paid along with a bill for the tax. An example of this was my former sister in law who filled in $0.00 for a $5,000 (in the 2010s) vehicle.

[RZehr]

If an Ohio resident buys a used car in Oregon (which has no sales tax), and ships it to Ohio and licenses and registers it in Ohio, what are the associated sales tax and fees that the Ohio resident pays?

Does the Ohio resident save any money buying this from out of state?

Is there any tax or registration cost advantage for an Ohioan to buy a slightly used vehicle for say $50,000 from out of state, versus buying the same vehicle brand new in Ohio, for the same amount of money?

They pay the Ohio sales tax when they go to register their car.

If they buy a used car they pay the sales tax based on the used car price.

It is customary in Ohio to leave the purchase price blank, and the buyer fills in a number they feel is the purchase price. (You may consult your nearest priest to discuss the ethics of this.) If this number is too low, the registrant will get a letter informing them of the price the state thinks was actually paid along with a bill for the tax. An example of this was my former sister in law who filled in $0.00 for a $5,000 (in the 2010s) vehicle.

Thanks. So there really is no advantage to buying a car out of state.

Is the sale tax percentage rate the same for a new car and a used car?

[Josh]

Thanks. So there really is no advantage to buying a car out of state.

Is the sale tax percentage rate the same for a new car and a used car?

Yes.

If you buy from a car dealer and trade in a vehicle, you only pay sales tax on the difference.

[Ken]

From the Ohio Department of Taxation: https://tax.ohio.gov/help-center/faqs/v ... 20is%20due.

If the vehicle was purchased at least six months prior to moving to Ohio, no additional Ohio sales tax is due. When the vehicle is titled, use the exemption code CV. If the vehicle was purchased out of state less than six months prior to moving to Ohio, sales tax is due. However, Ohio may allow a credit for the amount of sales tax paid to the other state.

So you have to own the vehicle for at least 6 months before you can bring it to Ohio sans tax. And that is only if you are moving to Ohio.

That is much more restrictive than it was in Texas.

[RZehr]

From the Ohio Department of Taxation: https://tax.ohio.gov/help-center/faqs/v ... 20is%20due.

If the vehicle was purchased at least six months prior to moving to Ohio, no additional Ohio sales tax is due. When the vehicle is titled, use the exemption code CV. If the vehicle was purchased out of state less than six months prior to moving to Ohio, sales tax is due. However, Ohio may allow a credit for the amount of sales tax paid to the other state.

So you have to own the vehicle for at least 6 months before you can bring it to Ohio sans tax. And that is only if you are moving to Ohio.

That is much more restrictive than it was in Texas.

That was my next question. If someone was moving to OH with their car vs. buying a car out of state.

[Neto]

If an Ohio resident buys a used car in Oregon (which has no sales tax), and ships it to Ohio and licenses and registers it in Ohio, what are the associated sales tax and fees that the Ohio resident pays?

Does the Ohio resident save any money buying this from out of state?

Is there any tax or registration cost advantage for an Ohioan to buy a slightly used vehicle for say $50,000 from out of state, versus buying the same vehicle brand new in Ohio, for the same amount of money?

They pay the Ohio sales tax when they go to register their car.

If they buy a used car they pay the sales tax based on the used car price.

It is customary in Ohio to leave the purchase price blank, and the buyer fills in a number they feel is the purchase price. (You may consult your nearest priest to discuss the ethics of this.) If this number is too low, the registrant will get a letter informing them of the price the state thinks was actually paid along with a bill for the tax. An example of this was my former sister in law who filled in $0.00 for a $5,000 (in the 2010s) vehicle.

Is the person or entity who "leaves the purchase price blank" a private seller? In my experience here in Ohio, a used car lot or a dealership (AKA 'stealershiup') has always filled it in, and I suspect that they also report it to the purchaser's county of residence. (I have sold vehicles privately in Ohio, but have not purchased one privately. When I have sold a vehicle here in Ohio, I did it in the presence of a notary public, our local bank manager.)

I have heard, but have not confirmed, that if you give a vehicle to someone, you can report a sale for $1.00. (Once at the end of a furlough, we donated our vehicle to a local charity for an auction, but that vehicle may have still been in my father-in-law's name, who gave it to us when we had arrived from Brazil. It was his old 'Florida car'.)

[Josh]

Dealers usually notarise their own titles and always fill in the purchase price.

Notaries don’t care about any parts of the title except where you sign, making sure it’s actually you that’s signing.

Most sellers leave it blank, in my experience, or put down a much lower price. (You can check the title history on a vehicle and see vehicles changing hands for $100 or $150 when it was realistically worth north of $1,000.) I have simply declared a higher value at the title office when this has happened or scribbled in an extra zero.

It is a matter of “courtesy” to leave it blank, and the responsibility is on the buyer to pay appropriate taxes, so I leave it blank unless the buyer asks me to fill it in.

A transfer for $0.00 implies no consideration and usually means a bill of sale or a gift letter may be needed, so a title office lawyer and a clerk of courts both advised me to put down $1 or $10 to avoid this. In essence, a title with a $1 transfer price is a legal contract whereas one with $0 is not a contract.