Ohio Updates Manufacturing Sales Tax Rule

Ohio has expanded the definition of things transferred for use in a manufacturing operation. Machinery, equipment, and supplies included in this definition are considered not taxable as part of a continuous manufacturing process. The expanded definition now includes:

• Machinery and equipment, detergents, supplies, solvents, and any other tangible personal property located at a manufacturing facility that are used in the process of removing soil, dirt, or other contaminants from, or otherwise preparing in a suitable condition for use, towels, linens, articles of clothing, floor mats, mop heads or other similar items, to be supplied to a consumer as part of laundry and dry cleaning services only when the towels, linens, articles of clothing, floor mats, mop heads, or other similar items belong to the provider of the services.
• Equipment and supplies used to clean processing equipment that is part of a continuous manufacturing operation to produce milk, ice cream, yogurt, cheese, and similar dairy products for human consumption.

(OAC5703-9-21, Ohio Department of Taxation, effective March 24, 2019)