Ohio Board Voids Use Tax on MGQ Terminal, Finds Manufacturing Exemption Applies

• The Ohio Board of Tax Appeals voided a use tax assessment against MGQ Terminal, Inc. for 2013-2016.
• The Board ruled MGQ’s activities qualified as a “manufacturing operation” under Ohio law, making certain purchases exempt from use tax.
• MGQ’s processes—heating, straining, blending, and lab testing—were found to transform materials and create new, customer-specific products.
• The Board emphasized the actual activities performed, not business labels, and rejected the need for MGQ to own input materials or sell a final product to qualify for the exemption.

Source: salestaxinstitute.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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