Ohio Denies Exemption for Vehicle Used Primarily to Transport Construction Waste

Monday, October 27th, 2014

Photo of a truck.

The Ohio Board of Tax Appeals ("Board") affirmed that a taxpayer's truck was not exempt from sales tax under the highway transport for hire exemption.

The taxpayer bought a 2013 truck without paying sales tax. The taxpayer claimed the purchase was exempt because he used it to transport personal property belonging to other people over highways. The taxpayer used the truck to transport construction waste.

Ohio use tax does not apply to the sale of a motor vehicle primarily used for transporting tangible personal property by a person engaged in transportation for hire. "Highway transportation for hire" is the transportation of tangible personal property belonging to others.

The Board ruled that waste being transported for disposal does not qualify as the personal property of others. The previous owner of the waste has given up its ownership. As waste does not qualify as another's personal property, using a vehicle primarily to transport waste cannot qualify for the highway transportation for hire exemption.


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