Boat Not Subject To Ohio Use Tax Even Though Boat Registered in Ohio

Tuesday, January 28th, 2014

 
 
Share
Link
Ohio
General

The Ohio Supreme Court recently ruled that a boat used principally in Kentucky and Indiana was not subject to Ohio use tax even though the owner registered the boat in Ohio.

Ohio has a transient use exemption from its use tax. This exemption applies to nonbusiness use within Ohio of property purchased for use outside Ohio that is not required to be registered or licensed in Ohio by Ohio law. Ohio law does not require boats to be registered in Ohio if the Coast Guard recognizes the boat as "temporarily transiting" and the boat's principal use is not in Ohio.

The taxpayer bought a boat and used it primarily in Kentucky and Indiana waters. The taxpayer did take the boat into Ohio waters occasionally. When the taxpayer took the boat into Ohio waters, Cincinnati police stopped, boarded, and inspected the boat and then allowed the taxpayer to continue boating. To prevent further stops, the taxpayer registered the boat in Ohio, indicating that the boat would primarily be used in Kentucky and Indiana.

The Ohio Department of Revenue assessed use tax on the boat.

The Court ruled that the boat qualified for the transient use exemption. Although the taxpayer did register the boat in Ohio, Ohio law did not require the taxpayer to register the boat in Ohio. The exemption applied to property that was not required to be registered in Ohio. The taxpayer's boat was not required to be registered in Ohio even though it was registered in Ohio. The boat therefore qualified for the exemption.

http://www.sconet.state.oh.us/ROD/docs/pdf/0/2014/2014-Ohio-98.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Louisiana Sales Tax Rates and Exemptions Set to Change...

Friday, May 25th, 2018 -Louisiana's sales tax rates and exemptions are set to change July 1, 2018, when several 2016 law changes will ...

Florida Exempts Generators Used in Assisted Living...

Thursday, May 24th, 2018 -Florida recently adopted an emergency rule on exempt sales of emergency generators for use at nursing homes an...

Washington Penalty Reduction Program

Monday, May 21st, 2018 -Businesses that apply to register with Washington's Marketplace Fairness Penalty Reduction Program by June 30,...

Fuel Used to Heat Detached Garages Taxable in Maine

Monday, May 21st, 2018 -Maine Revenue Services recently released a publication explaining that sales tax applies to fuel that is used ...

Cloud Software No Longer Taxable in Indiana

Thursday, May 17th, 2018 -Effective July 1, 2018, cloud software will no longer be taxable in Indiana. Indiana taxes the sale, lease,...

Sales Tax Increase in the Historic Triangle Region of...

Monday, May 14th, 2018 -Effective July 1, 2018, there will be an additional one percent (1%) regional sales and use tax imposed in the...