Accommodation sales

From the 2024 DOR Tax Exemption Study

Home Education Industry Guides Auto Dealers Dealer Trades Print Dealer trades What are dealer trades? Automobile dealers often sell or trade inventory to other dealers for various reasons. Sometimes a vehicle is traded for another vehicle and sometimes it is merely sold to another dealership. Often these "trades" are booked as inventory transfers rather than as sales. Dealer trades differ from accommodation sales . Taxability of dealer trades Dealer trades are generally taxable as wholesale sales. However, an exemption is allowed under certain conditions. The wholesale sale of a new motor vehicle is exempt from the B&O tax when the sale occurs between new car dealers selling the same make of vehicle. New car dealers will, in most cases, find the requirements of this exemption to be less restrictive than those of the accommodations sales. There is no restriction on the amount that the selling dealer can charge the buying dealer, nor is there any requirement that the sale be made to fill an existing order from a customer. While these circumstances may be present in a particular transaction, there is no need to rely upon the accommodation sales exemption when the requirements for the