Canadian Sales:  OADA worked with legislators to add Canada to the list of states/jurisdictions whose residents will be exempt from Ohio sales tax on motor vehicle purchases made in Ohio because Canada does not give credit for tax paid in other jurisdictions.  OADA pursued this change in response to numerous requests from dealers whose Canadian business has been impacted as a result of last year’s non-resident sales tax changes.

GAP Product:  Although GAP product sold in Ohio has been subject to sales tax for years, from time to time there have been questions regarding its taxability.  In response, the legislature clarified that GAP product sold in motor vehicle sales transactions is taxable, similar to extended service contracts and other products sold by dealers.  Since dealers in Ohio have been taxing GAP product for years, this clarification should have little impact on dealership operations.

Dealers may contact OADA with any questions regarding these recent clarifications.