Last Friday, the Ohio Department of Taxation finally filed the updated manufacturing sales and use tax exemption rule. The rule, which had not been updated since its inception in the 1990s, identifies the mechanics and application of ORC 5739.011: “For purposes of this rule, all purchases of tangible personal property are taxable, except those in which the purpose of the consumer is to incorporate the thing transferred as a material or a part into tangible personal property to be produced for sale by manufacturing, assembling, processing, or refining or to use the thing transferred, … primarily in a manufacturing operation to produce tangible personal property for sale.” “This means that a person who buys tangible personal property and will make it a part or constituent of something that is being manufactured for sale, or buys something that is used in a manufacturing operation, does not have to pay sales or use tax on the thing purchased.” The updated version, which the OMA actively helped craft, includes statutory updates, and clarification to examples outlined in the rule. The rule takes effect on March 24, 2019. 3/21/2019