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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.
If
the manufacturer repurchases my motor vehicle,
watercraft or outboard motor, pursuant to
the lemon law, and replaces it with another
vehicle, do I have to pay tax when applying for
title on the second vehicle?
YES.
According to the lemon law, the manufacturer is
required to refund to the purchaser the entire
purchase price plus the sales tax. That refund is
used to purchase the second motor vehicle,
watercraft or outboard motor. Therefore, sales tax
must be paid to the Clerk of Courts when obtaining
title for the replacement item.
If
the manufacturer has refunded the entire purchase
price and sales tax, it is eligible to apply for a
refund of the sales tax on the first purchase.
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