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At present, sales of licensed motor
vehicles, boats and outboard motors are subject to the sales tax rate of
the residence of the purchaser and the tax goes to that county.
All other taxable sales are subject to the sale tax rate of the location
of the vendor's place of business and the tax goes to his county.
Starting January 1, 2004, there will be
major changes to which rate and county will be used.
Sales of licensed automobiles,
boats, and outboard motors will continue to use the rate of the county
residence of the purchaser. Single payment leases will
also be treated this way.
Leases that require periodic payments
of other property will use the rate and the county where the leased
item is first used.
For all other sales, the
following rules apply:
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If the customer receives the
merchandise or service at the vendor's place of business, the rate and
county of the place of business is to be used.
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If the customer does not receive the
merchandise or service at the vendor's place of business, the rate and
county where the customer receives the merchandise or service is
to be used.
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If the location that the customer
receives the merchandise or service is unknown, the rate and the county
of the purchaser obtained from the vendor's business records is to be
used as long as this does not constitute bad faith.
These changes will require most
businesses to make major changes to their accounting systems to record
taxable sales by the county of place of business for merchandise and
services received at that location and by the county in which the
merchandise and services are delivered. Businesses will also be
required to keep track of the sales tax rate of all 88 counties of Ohio
and how much tax is collected for each county each month. Contact
our office if you need help with this area.
Consumers will be able to minimize sales
tax by some simple steps.
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If you shop in a lower sales tax rate
county, take delivery at the store in which you shop.
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If you shop in a higher sales tax rate
county, have the store deliver the merchandise to your home or business,
which ever has the lowest rate.
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If you lease items other than motor
vehicles, boats, and outboard motors, try to use them for the first time
in a county with the lowest sales tax rate.
We will be pleased to discuss these
issues with you and plan to reduce your sales tax liability to the minimum
amount due. |
