Souped-Up-Car Reseller Must Pay Sales Tax, Ohio Tribunal Says

A vehicle salesman couldn’t be exempted from nearly $46,000 in taxes for used cars he bought because he enhanced them for resale, which triggers use taxes, the Ohio Board of Tax Appeals said Tuesday.

In general, excise taxes are imposed on all retail sales or use of tangible personal property. In this instance, the salesman modified and stored the cars, he used the vehicles, and he had to pay state sales and use taxes, the opinion said.

David Kim partly owned a car-enhancing company to make them faster and started a new side business to purchase, modify, and resell automobiles, ...