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Sales Tax Fund
The CATA/Ohio Sales Tax Fund was established in 1959 as a service of convenience, as it relieves dealers of much of the cumbersome procedures for collecting and submitting sales tax on the sale of motor vehicles. The fund also helps eliminate title rejections because of addition errors with your company checks.
The fund works in a manner similar to your commercial checking account. You send your title application to the Clerk of Courts of Cuyahoga County as usual, but you do not send any remittance for sales tax. You do continue to put the amount of sales tax due on the title application.
The Clerk of Courts will make out the sales tax receipt in three copies, and forward us your copy(ies). We pay the total amount in one payment for you and other fund participants. We then charge your account the amount of the tax receipts on your transactions, and together with a small service charge, send you an itemized statement of your monthly activity at the close of the month, along with your tax receipts. The statement will show the credits, debits, service charge and your balance.
All payments made by the fund on your behalf are debited against your account on the date of payment. Likewise, your account is credited for monies received on the date of receipt - not the date of the check, the date it is mailed, or the date it is given to the runner.
The fund follows these regulations:
- Participation is by written agreement.
- An initial remittance to cover approximately two weeks of your normal current requirements is necessary to open an account.
- Maintenance of a credit balance is required at all times. If a participant falls into the red, according to our records, at any time during a month, a penalty will be charged based on 1% of the highest red figure posted during that month.
- Service charges:
Each debit & credit item $ .50
Minimum monthly charge $25.00
- Payment to fund must be by company check, made payable to CATA.
- A stop order, putting a hold on all titles in process at the Clerk of Courts, may be made if participant does not clear up any deficit balance within 24 hours of notification from our office.
The fund is not complicated. Your tax monies and receipts are handled quite automatically regardless of number or frequency of deals. And, the big advantage of participation is that each transaction in a group can be completed without delay or encumbrance on account of an error in other transactions in the group covered by one check. How often has your entire day’s transactions been returned due to an addition problem in one deal? That will no longer happen.
If you’re interested in the CATA/Ohio Sales Tax Fund, please contact Dennis Rose at your Association or email drose@gcada.org.
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