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Are You Taking Full Advantage Of Ohio Manufacturing Sales Tax Exemptions

Most manufacturers know they are allowed to purchase tangible property for use in the manufacturing process free from Ohio sales and use tax, but are you taking full advantage of all of your Ohio sales tax exemption benefits? And what does for use in the manufacturing process really mean?

For use in the manufacturing process is referring to tangible personal property to be used or consumed in the manufacturing process. Such as;

  • Property resold in the form it is received.
  • Tangible property used or consumed in a manufacturing operation.
  • Materials used for manufacturing, assembling, processing or refining to produce tangible personal property.
  • Items used in packaging property such as material, machinery and equipment.

In addition to the purchase of tangible assets, distributions and sales to customers outside of Ohio may also be free from Ohio sales taxes. Examples of a qualified transaction may include the following:

  • Inventory shipped to a commonly controlled warehouse.
  • Property manufactured in Ohio that is sold and shipped to an out of state customer.

These are just a few examples that could result in tax exemptions. Other exemptions may exist based on who the seller/buyer is, what is being sold, or what the property will be used for. If you have questions, please contact your local Blue & Co. representative, or email Paul Roth at proth@blueandco.com.


This is the final part of a three-part newsletter series on sales tax. Check out part one: 3 Types of Sales Tax Exemptions You Need to Know About in KY, and part two: States Are Aggressively Pursuing Sales Tax: Are you ready?.

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