Ohio dealers are required to
collect sales tax at the time of any retail sale of a
vehicle to an Ohio resident. You are also required to
collect sales tax if you sell a vehicle to any person
that lives in Arizona, California, Florida, Indiana,
Massachusetts, Michigan, or South Carolina. Before you
can charge sales tax you will be required to apply for
an Ohio Vendors
license . The Vendors License application process is
covered extensivly in class.
When sales tax is required to be collected you must charge the sales tax at the time of the sale. You will charge sales tax on the total purchase price of the vehicle including, any document fees, preparation charges, delivery fees, warranties, undercoating, and service maintenance contracts.
For example if you sell a vehicle for $10,000 and include a document fee of
$250 dollars, you will charge sales tax on $10,250.
The sales tax amount your customer pays depends upon where they live. We will show you how to easily compute the sales tax your customer owes in your dealer training class.
We will cover sales tax collections extensively in your dealer training class. Find a class near you by clicking on Class Schedule.