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Tax Distribution
Permissive Tax FAQ
Rev. July 2019
“Vehicle registration permissive tax “(hereinafter referred to as “permissive tax”) is an optional tax that can be levied by counties, municipalities, and/or townships on vehicle registrations. It is defined in Ohio Revised Code (ORC) Chapter 4504: Local Motor Vehicle License Tax. There are eleven $5.00 levies that are available to be enacted, but only six can be in effect at any one time in any single taxing district.
Permissive tax revenue is to be used by the counties and taxing districts per ORC Chapter 4504, which includes planning, constructing, improving, maintaining and repairing public roads, highways, streets, and for the maintaining and repair of bridges and viaducts.
A taxing district is either a municipality (incorporated village or city) or a township. Municipalities can be assigned multiple taxing district numbers if the boundaries are in multiple counties.
Counties, municipalities and townships pass a resolution/ordinance per ORC. Once the resolution/ordinance has been passed, a copy is sent to the Ohio Bureau of Motor Vehicles, Tax Distribution Section, by July 1 to be effective the following registration year (ORC section 4504.08).
The current Taxing District Code Book lists all the taxing districts within each county and the current permissive tax rates. The current maximum permissive tax for registration in any single taxing district is $30.00 per registration per registration year.
Counties have the option of enacting levies under ORC sections 4504.02, 4504.15, 4504.16, and 4504.24 at any time. Collection of permissive tax under the first three levies is contingent on the respective municipal levies of 4504.06, 4504.17 and 4504.171. For example, if City X in County Y has already enacted 4504.06, then County Y now levying 4504.02 will not be able to collect permissive tax from vehicle registrations of the residents of City X under 4504.02.
Municipalities have the option of enacting levies under ORC sections 4504.06, 4504.17, 4504.171, and 4504.172. House Bill 62 created a new municipality permissive tax (ORC section 4504.173). Enacting 4504.06, 4504.17, and 4504.171 are contingent on the respective county levies 4504.02, 4504.15 and 4504.16. For example, if County X has enacted 4504.02, then City Y cannot enact 4504.06. ORC sections 4504.172 and 4504.173 are not contingent on any other levy, so a municipality can pass an ordinance at any time to enact these sections.
Townships have the option of enacting a levy under ORC section 4504.18. House Bill 62 created a new township permissive tax (ORC section 4804.181). ORC sections 4504.18 and 4504.181 are not contingent on any other levy, so a township can pass a resolution at any time to enact these sections.
The percentage each county/taxing district receives in permissive tax depends on which levies are enacted in that county/taxing district. Please refer to the following chart:
| ORC | Amount | Distribution Rules |
|---|---|---|
| County Levies | ||
| 4504.02 | $ 5.00 | 100% of the revenue collected is distributed to the county (Municipalities can request from the county a portion of this revenue, per the Ohio Revised Code) (Counties have the authority to enact this tax at any time; however, cannot collect revenue from a municipality already enacting 4504.06) |
| 4504.15 | $ 5.00 | If a municipal registration: 50% to the municipality, 50% to the county If a township registration: 30% to the township, 70% to the county. (Counties have the authority to enact this tax at any time; however, cannot collect revenue from a municipality already enacting 4504.17) |
| 4504.16* | $ 5.00 | If a municipal registration: 100% is distributed to the county If a township registration: 30% to the township, 70% to the county. (*4504.051 allows an increase or decrease in the allocation to townships by passage of a resolution and county approval.) (Counties have the authority to enact this tax at any time; however, cannot collect revenue from a municipality already enacting 4504.171) |
| 4504.24 | $ 5.00 | 100% of the revenue collected is distributed to the county (Counties have the authority to enact this tax at any time) |
| Municipal Levies | ||
| 4504.06 | $ 5.00 | 100% to the municipality (Municipalities cannot enact this tax if the County is already enacting 4504.02) |
| 4504.17 | $ 5.00 | 100% to the municipality (Municipalities cannot enact this tax if the County is already enacting 4504.15) |
| 4504.171 | $ 5.00 | 100% to the municipality (Municipalities cannot enact this tax if the County is already enacting 4504.16) |
| 4504.172 | $ 5.00 | 100% to the municipality (Municipalities have the authority to enact this tax at any time) |
| 4504.173 | $ 5.00 | 100% to the municipality (Municipalities have the authority to enact this tax at any time) |
| Township Levies | ||
| 4504.18 | $ 5.00 | 100% to the Township (Townships have the authority to enact this tax at any time) |
| 4504.181 | $ 5.00 | 100% to the Township (Townships have the authority to enact this tax at any time) |
Detailed Statements of Motor Vehicle Registrations
These reports include total registrations by county and vehicle type, total registrations taxing district breakdown for each county by vehicle type, revenue collected by county, and total revenue collected.