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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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 www.ttrus.com or call 866.578.8193.

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