Swapping cars - Ohio

teal32 · January 11, 2009, 06:35:24 PM

Question for you Ohio guys. A friend and I want to swap cars. They are of equal value. How does the Ohio BMV handle this? Do we each have to pay taxes? Or.................. Thanks for any help. Bob

39deluxe · January 11, 2009, 09:26:47 PM

If I remember right when you trade cars you pay sales tax on the difference of value between the 2. If you trade in a $3000. car for a $5000. car you pay tax on $2000. Using that example there would be no difference to pay tax on in an even trade. Just call your local BMV to verify this. They will answer you quickly and maybe even correctly.

Tom

teal32 · January 11, 2009, 10:35:26 PM

I tried calling the local and state BMV and received 5 different answers. I even sent an email to the state to see what that response will be. It appears to be different when dealing with an individual rather than a dealer. Thanks for the advice.

Uncle Bob · January 12, 2009, 09:03:31 AM

We have a similar thing here in Wa. but it does apply across the board. If two private parties do the swap there's an affidavit form they have where each swears to the "facts" of the terms. You might want to check if such a form exists there, that might be the best way to get a correct answer.

enjenjo · January 12, 2009, 09:45:52 AM

I am going to the BMV today, I'll ask how they do it.

GPster · January 12, 2009, 10:19:08 AM

Are both titles from the saame state? In the past on something strange like this I've found it best to go to their office and talk directly to their leader. He (she?) is the one that certifies the change and his understanding of the situation may be different than others. If both cars are from Ohio but different counties maybe the other county has a different understanding. IIt might also be easier if you both appear at the Registror's office and let them notorize the transaction there rather than them having to rely on your explanation. GPster

enjenjo · January 13, 2009, 10:41:30 AM

I was up at the BMV yesterday for some title work, and asked about this situation. What they told me was the owners have to place a value on the vehicles, and that is what you will pay tax on. This is in Fulton county Ohio

teal32 · January 13, 2009, 01:27:23 PM

Thanks for checking. I went out early this AM to the Hancock Title office. They told me just what you said. That was only the 2nd time that I heard it that way out of several trys. It appears that the State and the Counties are looking for ways to get additional revenue, so they are going back a few years and matching up titles. BEWARE IF YOU DID ANY SWAPPING OR TRADING OVER THE PAST FEW YEARS. At least I was honest, so this probably won't bite me in the *.

enjenjo · January 13, 2009, 02:37:03 PM

I got off with ) tax on this one.

This was the car that had the owner pass away during the build three years ago. The court awarded me the car to settle the estate, and listed the purchase price as 0. The BMV could not modify a court order. They did get me for $5 for not transfering it within 30 days, even though I just got the paper work friday, but I thought it was best to pay it and walk away.