fbpx

< Back to Thought Leadership

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?.

Tax Reform Resource Center

Read More Thought Leadership Articles Like what you read? Subscribe to our newsletter. Click Here.

Blue & Co., LLC acquires Alerding CPA Group

Blue & Co., LLC acquires Alerding CPA Group

Carmel, Ind. (November 23, 2022) – The accounting and consulting firms of Alerding CPA Group (Indianapolis, Ind.) and Blue & Co., LLC (Carmel, Ind.) have announced their merger. The combined firm will operate as Blue & Co., LLC (Blue & Co.), effective December 1, 2022. This acquisition will provide Blue & Co. with greater market […]

Learn More

Not-for-Profit Single Audit Requirements – Evaluation of Revenue Sources

By: Holly Fields, CPA, Senior Manager Not-for-profit organizations (NFPs) that receive federal financial assistance over certain levels, either directly from a federal agency or indirectly through state or local agencies, may be required to have a single audit performed under Federal Uniform Guidance. Single Audit Requirements A single audit includes not only an audit of […]

Learn More

Occupational Mix Survey: What You Need to Know

Every three years, the Centers for Medicare and Medicaid Services (CMS) requires any Hospital that is subject to the Inpatient Prospective Payment System (IPPS) to complete an Occupational Mix Survey (OMS). This data is then used to calculate an Occupational Mix Adjustment Factor (OMAF). The occupational mix adjustment impacts a hospital’s average hourly wage and […]

Learn More