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ST 1998-02 - Dealer/Broker Watercraft Sales - Revised September, 1998

This will reiterate the Department's position that the sale of watercraft, outboard motors and parts thereof made by boat dealers and/or brokers are deemed to be sales subject to the sales or use tax regardless of who holds title to such watercraft, outboard motors or parts prior to the sale.

Tax Commissioner Rule 5703-9-40, dated February 24, 1965, reads as follows:

"Persons engaged in the business of selling tangible personal property who are authorized, engaged or employed to sell tangible personal property belonging to another are the vendors of such tangible personal property and shall be responsible for the proper collection and remittance of the sales tax with respect to such sales.

Persons engaged in the business of selling tangible personal property shall include persons who hold themselves out to the public as conducting a business regardless of whether the merchandise sold is owned by them or by other persons who have authorized, engaged or employed them to sell tangible personal property."

Therefore, persons who represent themselves as dealers and/or brokers and make sales of tangible personal property on their own behalf or on behalf of others must collect the tax on all such sales unless otherwise exempted. Such dealers and/or brokers are required to be properly licensed with Ohio for the collection and remittance of tax. Tax must be paid as follows:

  1. On titled watercraft and/or outboard motors, the dealer/broker will remit the proper amount of tax [net of discount when the dealer/broker has a vendor's license or an out-of-state seller's registration (99-??????)] to the Clerk of Courts for the purchaser's county of residence.


  2. On watercraft that are not required to be titled, documented watercraft or accessories and parts, the dealer/broker will remit the proper amount of tax to the Treasurer of State on the Department's tax return. This remittance will be net of discount if the return is timely filed and the amount of tax that is due is paid in full.

Failure to comply with all statutory reporting and payment requirements will subject the dealer or broker to an assessment for the unreported or unpaid sales or use tax.

If you have any questions regarding this matter, you should call us at 1-888-405-4039.

Phone: 1-800-750-0750


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