An “off-road vehicle” is a vehicle that is not designed or licensed to be used on public streets or highways. Examples include:

• All-terrain vehicles (ATVs)
• Boats and personal watercraft
• Dirt bikes
• Dune buggies and sand-rails
• Rock crawlers
• Snowmobiles

For off-road vehicles, the purchase price is determined by subtracting any trade-in allowance from the sales price as shown below.

Note: Rebates can reduce the purchase price, be used as a down payment, or be refunded to the customer. A rebate must have a fixed value. If a third party entered into an agreement with a vehicle manufacturer to offer rebates, the rebate can reduce the vehicle’s sales price.

The sales price includes:

• Price of the off-road vehicle
• Charges for labor performed (for example, rustproofing, undercoating, dealer preparation, and transportation)
• Charges for accessories (for example, running boards and mud flaps)

• A trade-in allowance reduces the purchase price when an off-road vehicle is taken in trade by the seller.
• A trade-in allowance does not reduce the purchase price when an off-road vehicle is taken in trade by a third party. (For example, a dealer sells an off-road vehicle to a customer, but the customer sells their off-road vehicle to a third party. The proceeds received from the third party do not reduce the purchase price of the vehicle.)

Do not charge sales tax on:

• Registration, license, and document fees
• Extended warranties