West Virginia Car Dealer Slips Ohio Tax on Cars Sold to Ohioans

A group of car dealerships is off the hook for $2 million in Ohio commercial activity tax because they’re located and the sales were completed in West Virginia, even if they involved Ohio customers, the Ohio Board of Tax Appeals ruled Wednesday.

“The unrebutted evidence provides that the entire vehicle sales transaction (i.e., purchase, receipt, and delivery) occurs in West Virginia,” Executive Director Kathleen Crowley wrote for the board. Ohio residents received their cars in West Virginia, so gross receipts from the sales can’t be taxed by Ohio, she said.

Straub Nissan LLC and five related dealerships are located in ...