An important, but sometimes overlooked, part of the Electronic Title Application (ETA) system is Geocode validation, which ensures that every address entered into the ETA system is a real, mappable location. This process helps eliminate errors and ensures accurate tax jurisdiction assignment and collection.
What Geocode validation checks
- Proper street names and house numbers
- Valid ZIP code, city, state, and county combinations
If the address doesn’t pass validation, the system will prompt the user to correct it before continuing.
Why Geocode accuracy matters for tax collection
The sales and use tax owed by the customer is based on their residence location. Accurate address validation ensures the correct county tax rate is applied.
- State Sales Tax: 5.75%
- Use Tax: Varies by county (up to 3%)
- Maximum Combined Rate: 8.75%
Note: Tax should be calculated based on the rate in effect at the time of sale, not at the time of title issuance. Taxes are due to the Clerk of Courts when the title is issued.
Impact on dealers and clerks
- All ETA submissions must pass Geocode validation to proceed
- Incomplete or incorrect addresses will delay title issuance
Tips for smooth processing
- Always double-check addresses before submitting
- Use Ohio Department of Taxation’s “The Finder”/ USPS-verified address formats. See below for links
- For new builds or hard-to-validate addresses, contact your Clerk of Courts for assistance
Troubleshooting rejected addresses
You’ll see this error message when the Geocode validation fails.
Take these steps if Geocode validation fails:
- Verify address with Ohio Department of Taxation “The Finder” or USPS Address Lookup
- Check if the address was pulled from the customer’s ID — it may be incomplete or incorrect
- Confirm the county decoded correctly in your system
- ZIP decode will populate the county based on ZIP only — this can be edited if the address falls close to a county line or has applicable transit tax
- Review deal documents for additional address information
- Use Google to search the address
- Check the Ohio Temporary Tag — this address is typically validated.
- Contact the customer directly to verify
Address validation resources
There are two primary tools you can use to validate addresses, The Finder and USPS Address Lookup.
- The Finder – Ohio Dept. of Taxation at https://tax.ohio.gov/help-center/the-finder/the-finder
Use The Finder to verify county and tax rate. If the system does not return “Found Address,” do not rely on it alone.
- USPS Address Lookup at https://tools.usps.com/zip-code-lookup.htm
Red error messages indicate incorrect or incomplete addresses.
Ohio dealers, take note: When selling a vehicle to a nonresident, you’re still required to secure an Ohio title in the buyer’s name using their out-of-state or foreign address. This is called a nonresident title, and it follows the same process as any original title application.
There’s no shortcut here — you cannot hand over the MCO or title the vehicle in the buyer’s home state. Every out-of-state transaction must include a completed STEC-NR affidavit, (R.C. 5739.029, 5739.027, and OAC 5703-9-10) and no memorandum titles are issued for these deals.
This rule applies across the board, including for heavy-duty trucks. Staying compliant protects your dealership and ensures a smooth process for your buyers.
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