Cross-Border Car Sales Draw Ohio Tax, State Argues to Justices

A group of car dealerships in West Virginia owes $2 million in Ohio commercial activity tax because sales are attributable to the ultimate destination of the vehicle, Ohio’s tax commissioner told the state high court.

Commissioner Patricia Harris wants the Ohio Supreme Court to overturn a state tax tribunal’s ruling that the focus should be on where the purchase, receipt, and delivery of each car takes place. Ohio residents received their cars in West Virginia, so gross receipts from the sales can’t be taxed by Ohio, the Ohio Board of Tax Appeals had said.

But Straub Nissan LLC and five ...