Tax Applied to Caustic Solution Used to Clean Manufacturing Dies in Ohio

Wednesday, September 3rd, 2014

Manufacturing machinery.

The Ohio Board of Tax Appeals ("Board") recently ruled that a taxpayer had to pay tax on a caustic solution used to clean dies.

The taxpayer purchased a caustic solution to use on dies used in manufacturing. The solution removed aluminum residual that collected in the die during a manufacturing run. If left in the die, the residual could create problems in later manufacturing runs. The taxpayer applied the solution to the dies between manufacturing runs. Sometimes, if a problem occurred during a manufacturing run, the taxpayer would stop that run to apply the solution.

Ohio exempts purchases of certain tangible personal property used during manufacturing operations. This exemption applies to items that control, physically support, produce power for, lubricate, or are otherwise necessary for production machinery to function and for the manufacturing operation to continue.

The Board ruled that the caustic solution was taxable. The solution was not necessary to continue the manufacturing operation. In fact, the taxpayer only used the solution when the dies were taken out of the manufacturing operation - when a manufacturing run had finished or had been stopped. Because the solution was only used when the manufacturing process had stopped, it was not necessary to continue the manufacturing operation.

About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at or call 866.578.8193.

Texas Exempts Boats and Motors Temporarily Used in the...

Wednesday, June 26th, 2019 -Texas has recently passed a bill creating an exemption for boats and motors purchased for use outside of the s...

Data Survey Services Not Taxable in South Carolina

Monday, June 24th, 2019 -The South Carolina Department of Revenue recently ruled that business data survey services were non-taxable pr...

Senior Center Cafeterias are Taxable in Missouri

Friday, June 21st, 2019 -Missouri's Director of Revenue recently issued a letter ruling taxing the sale of cafeteria food by a 501(c)(3...

Hot-Air Balloon Rides in Missouri are Taxable When...

Wednesday, June 19th, 2019 -Missouri recently released a letter ruling addressing the taxation of hot-air balloon rides. The taxpayer was ...

Nevada Exempts Certain Medical Equipment

Monday, June 17th, 2019 -Effective July 1, 2019, Nevada will exempt durable medical equipment, oxygen delivery equipment, and mobility ...

Participatory Sports are Taxable in New York

Friday, June 14th, 2019 -The New York Division of Tax Appeals recently denied a refund claim made by an instructor-led indoor spin clas...