Frequently Asked Questions

Sales Tax

These Questions and Answers are courtesy of the Ohio Department of Taxation’s website, www.tax.ohio.gov.  You may find additional FAQs related to sales and use tax and motor vehicles at that web address.

Do rebates reduce the "price" for calculating sales or use tax?

NO. A rebate is money that is or will be paid to the purchaser by the manufacturer after the sale is complete as an incentive to make the purchase. Typically, however, the purchaser assigns the rebate over to the dealer and it is used as all or part of the down payment. Therefore, the rebate amount that is part of the consideration received by the dealer and is part of the price paid upon which the tax is based.