Ohio Rev. Code » Chapter 5739
Ohio Revised Code

Ohio Rev. Code § 5739.011 (2026)

Exemptions for manufacturing

✓ current as of May 2026
Find cases: SyfertCases citing this section ORCcodes.ohio.gov (official) Justiaon Justia CornellLII Search CasesGoogle Scholar
Effective:
March 27, 2020
Latest Legislation:
House Bill 197 - 133rd General Assembly
PDF:
Download Authenticated PDF
 

(A) As used in this section:

(1) "Manufacturer" means a person who is engaged in manufacturing, processing, assembling, or refining a product for sale and, solely for the purposes of division (B)(12) of this section, a person who meets all the qualifications of that division.

(2) "Manufacturing facility" means a single location where a manufacturing operation is conducted, including locations consisting of one or more buildings or structures in a contiguous area owned or controlled by the manufacturer.

(3) "Materials handling" means the movement of the product being or to be manufactured, during which movement the product is not undergoing any substantial change or alteration in its state or form.

(4) "Testing" means a process or procedure to identify the properties or assure the quality of a material or product.

(5) "Completed product" means a manufactured item that is in the form and condition as it will be sold by the manufacturer. An item is completed when all processes that change or alter its state or form or enhance its value are finished, even though the item subsequently will be tested to ensure its quality or be packaged for storage or shipment.

(6) "Continuous manufacturing operation" means the process in which raw materials or components are moved through the steps whereby manufacturing occurs. Materials handling of raw materials or parts from the point of receipt or preproduction storage or of a completed product, to or from storage, to or from packaging, or to the place from which the completed product will be shipped, is not a part of a continuous manufacturing operation.

(7) "Food" has the same meaning as in section 3717.01 of the Revised Code.

(B) For purposes of division (B)(42)(g) of section 5739.02 of the Revised Code, the "thing transferred" includes, but is not limited to, any of the following:

(1) Production machinery and equipment that act upon the product or machinery and equipment that treat the materials or parts in preparation for the manufacturing operation;

(2) Materials handling equipment that moves the product through a continuous manufacturing operation; equipment that temporarily stores the product during the manufacturing operation; or, excluding motor vehicles licensed to operate on public highways, equipment used in intraplant or interplant transfers of work in process where the plant or plants between which such transfers occur are manufacturing facilities operated by the same person;

(3) Catalysts, solvents, water, acids, oil, and similar consumables that interact with the product and that are an integral part of the manufacturing operation;

(4) Machinery, equipment, and other tangible personal property used during the manufacturing operation that control, physically support, produce power for, lubricate, or are otherwise necessary for the functioning of production machinery and equipment and the continuation of the manufacturing operation;

(5) Machinery, equipment, fuel, power, material, parts, and other tangible personal property used to manufacture machinery, equipment, or other tangible personal property used in manufacturing a product for sale;

(6) Machinery, equipment, and other tangible personal property used by a manufacturer to test raw materials, the product being manufactured, or the completed product;

(7) Machinery and equipment used to handle or temporarily store scrap that is intended to be reused in the manufacturing operation at the same manufacturing facility;

(8) Coke, gas, water, steam, and similar substances used in the manufacturing operation; machinery and equipment used for, and fuel consumed in, producing or extracting those substances; machinery, equipment, and other tangible personal property used to treat, filter, pump, or otherwise make the substance suitable for use in the manufacturing operation; and machinery and equipment used for, and fuel consumed in, producing electricity for use in the manufacturing operation;

(9) Machinery, equipment, and other tangible personal property used to transport or transmit electricity, coke, gas, water, steam, or similar substances used in the manufacturing operation from the point of generation, if produced by the manufacturer, or from the point where the substance enters the manufacturing facility, if purchased by the manufacturer, to the manufacturing operation;

(10) Machinery, equipment, and other tangible personal property that treats, filters, cools, refines, or otherwise renders water, steam, acid, oil, solvents, or similar substances used in the manufacturing operation reusable, provided that the substances are intended for reuse and not for disposal, sale, or transportation from the manufacturing facility;

(11) Parts, components, and repair and installation services for items described in division (B) of this section;

(12) 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;

(13) Equipment and supplies used to clean processing equipment that is part of a continuous manufacturing operation to produce food for human consumption.

(C) For purposes of division (B)(42)(g) of section 5739.02 of the Revised Code, the "thing transferred" does not include any of the following:

(1) Tangible personal property used in administrative, personnel, security, inventory control, record-keeping, ordering, billing, or similar functions;

(2) Tangible personal property used in storing raw materials or parts prior to the commencement of the manufacturing operation or used to handle or store a completed product, including storage that actively maintains a completed product in a marketable state or form;

(3) Tangible personal property used to handle or store scrap or waste intended for disposal, sale, or other disposition, other than reuse in the manufacturing operation at the same manufacturing facility;

(4) Tangible personal property that is or is to be incorporated into realty;

(5) Machinery, equipment, and other tangible personal property used for ventilation, dust or gas collection, humidity or temperature regulation, or similar environmental control, except machinery, equipment, and other tangible personal property that totally regulates the environment in a special and limited area of the manufacturing facility where the regulation is essential for production to occur;

(6) Tangible personal property used for the protection and safety of workers, unless the property is attached to or incorporated into machinery and equipment used in a continuous manufacturing operation;

(7) Tangible personal property used to store fuel, water, solvents, acid, oil, or similar items consumed in the manufacturing operation;

(8) Except as provided in division (B)(13) of this section, machinery, equipment, and other tangible personal property used to clean, repair, or maintain real or personal property in the manufacturing facility;

(9) Motor vehicles registered for operation on public highways.

(D) For purposes of division (B)(42)(g) of section 5739.02 of the Revised Code, if the "thing transferred" is a machine used by a manufacturer in both a taxable and an exempt manner, it shall be totally taxable or totally exempt from taxation based upon its quantified primary use. If the "things transferred" are fungibles, they shall be taxed based upon the proportion of the fungibles used in a taxable manner.
Notes of Decisions
Cited in 13 cases, 1998–2019 · leading case: Ellwood Engineered Castings Co. v. Zaino, 98 Ohio St. 3d 424 (Ohio 2003).
Sort: Relevance Newest Treatment
Ellwood Engineered Castings Co. v. Zaino, 98 Ohio St. 3d 424 (Ohio 2003). · cites it 43× “” {¶ 30} R.C. 5739.011 delineates various items and then classifies them as either included or not included in the term “thing transferred” for purposes of R.”
E. Mfg. Corp. v. Testa (Slip Opinion), 2018 Ohio 2923 (Ohio 2018). · cites it 42× “Thus, East bears the burden of proving that it is entitled to an exemption under R.C. 5739.011. {¶ 11} R.C. 5739.02(B)(42)(g) states that the use tax does not apply "where the purpose of the purchaser is * * * [t]o use the thing transferred, as described in section 5739.”
Bellemar Parts Indus., Inc. v. Tracy, 725 N.E.2d 1132 (Ohio 2000). · cites it 7× “This conclusion is supported by R.C. 5739.011, which provides guidance as to the full term “thing transferred” for purposes of the manufacturing exception.”
In re Allied Consol. Indus., Inc., 602 B.R. 645 (Bankr. N.D. Ohio 2019). · cites it 10× “Under O.R.C. § 5739.011(B)(11), repairs on, and fuel used by, equipment found exempt from use tax under the Manufacturing Exemption are also exempt.”
Lafarge N. Am., Inc. v. Testa (Slip Opinion), 2018 Ohio 2047 (Ohio 2018). · cites it 4× “See R.C. 5739.011(A)(6) (defining "continuous manufacturing operation" as "the process in which raw materials or components are moved through the steps whereby manufacturing occurs").”
Q3 Stamped Metal, Inc. v. Zaino, 751 N.E.2d 1001 (Ohio 2001). · cites it 18× “01(E)(9) excepts sales from taxation when the purpose of the consumer is “[t]o use the thing transferred, as described in section 5739.011 of the Revised Code, primarily in a manufacturing operation to produce tangible personal property for sale.”
Gen. Motors Corp. v. Wilkins, 806 N.E.2d 517 (Ohio 2004). “{¶ 27} In addition, R.C. 5739.011(C)(9) provides that a motor vehicle “registered for operation on public highways” is not a “thing transferred” for the purposes of the manufacturing exception; as a result, motor vehicles are not excepted from sales tax under the manufacturing…”
Sims Bros. v. Tracy, 699 N.E.2d 50 (Ohio 1998). “02(B)(16) or current R.C. 5739.011(B)(2), as materials handling equipment.”
Anheuser-Busch, Inc. v. Tracy, 709 N.E.2d 834 (Ohio 1999). · cites it 5× “01(E)(9) and (S) and R.C. 5739.011. Alternatively, Anheuser-Busch contends that the disputed equipment purchases qualify for the packaging exemption in former R.”
Q3 Stamped Metal, Inc. v. Zaino, 2001 Ohio 1270 (Ohio 2001). · cites it 20× “01(E)(9) excepts sales from taxation when the purpose of the consumer is “[t]o use the thing transferred, as described in section 5739.011 of the Revised Code, primarily in a manufacturing operation to produce tangible personal property for sale.”
Bellemar Parts Indus., Inc. v. Tracy, 2000 Ohio 343 (Ohio 2000). · cites it 7× “6 January Term, 2000 {¶ 17} This conclusion is supported by R.C. 5739.011, which provides guidance as to the full term “thing transferred” for purposes of the manufacturing exception.”
Sims Bros., Inc. v. Tracy, 1998 Ohio 116 (Ohio 1998). “02(B)(16) or current R.C. 5739.011(B)(2), as materials handling equipment.”
Show all 13 citing cases →
— Ohio Rev. Code § 5739.011(A)(6) — 1 case
Lafarge N. Am., Inc. v. Testa (Slip Opinion), 2018 Ohio 2047 (Ohio 2018). “See R.C. 5739.011(A)(6) (defining "continuous manufacturing operation" as "the process in which raw materials or components are moved through the steps whereby manufacturing occurs").”
— Ohio Rev. Code § 5739.011(B) — 2 cases
Ellwood Engineered Castings Co. v. Zaino, 98 Ohio St. 3d 424 (Ohio 2003). “” {¶ 30} R.C. 5739.011 delineates various items and then classifies them as either included or not included in the term “thing transferred” for purposes of R.”
E. Mfg. Corp. v. Testa (Slip Opinion), 2018 Ohio 2923 (Ohio 2018). “Thus, East bears the burden of proving that it is entitled to an exemption under R.C. 5739.011. {¶ 11} R.C. 5739.02(B)(42)(g) states that the use tax does not apply "where the purpose of the purchaser is * * * [t]o use the thing transferred, as described in section 5739.”
— Ohio Rev. Code § 5739.011(B)(1) — 3 cases
Lafarge N. Am., Inc. v. Testa (Slip Opinion), 2018 Ohio 2047 (Ohio 2018). “See R.C. 5739.011(A)(6) (defining "continuous manufacturing operation" as "the process in which raw materials or components are moved through the steps whereby manufacturing occurs").”
Anheuser-Busch, Inc. v. Tracy, 709 N.E.2d 834 (Ohio 1999). “01(E)(9) and (S) and R.C. 5739.011. Alternatively, Anheuser-Busch contends that the disputed equipment purchases qualify for the packaging exemption in former R.”
Anheuser-Busch, Inc. v. Tracy, 1999 Ohio 284 (Ohio 1999).
— Ohio Rev. Code § 5739.011(B)(11) — 1 case
In re Allied Consol. Indus., Inc., 602 B.R. 645 (Bankr. N.D. Ohio 2019). “Under O.R.C. § 5739.011(B)(11), repairs on, and fuel used by, equipment found exempt from use tax under the Manufacturing Exemption are also exempt.”
— Ohio Rev. Code § 5739.011(B)(2) — 2 cases
Sims Bros. v. Tracy, 699 N.E.2d 50 (Ohio 1998). “02(B)(16) or current R.C. 5739.011(B)(2), as materials handling equipment.”
Sims Bros., Inc. v. Tracy, 1998 Ohio 116 (Ohio 1998). “02(B)(16) or current R.C. 5739.011(B)(2), as materials handling equipment.”
— Ohio Rev. Code § 5739.011(B)(4) — 4 cases
Ellwood Engineered Castings Co. v. Zaino, 98 Ohio St. 3d 424 (Ohio 2003). “” {¶ 30} R.C. 5739.011 delineates various items and then classifies them as either included or not included in the term “thing transferred” for purposes of R.”
E. Mfg. Corp. v. Testa (Slip Opinion), 2018 Ohio 2923 (Ohio 2018). “Thus, East bears the burden of proving that it is entitled to an exemption under R.C. 5739.011. {¶ 11} R.C. 5739.02(B)(42)(g) states that the use tax does not apply "where the purpose of the purchaser is * * * [t]o use the thing transferred, as described in section 5739.”
Q3 Stamped Metal, Inc. v. Zaino, 751 N.E.2d 1001 (Ohio 2001). “01(E)(9) excepts sales from taxation when the purpose of the consumer is “[t]o use the thing transferred, as described in section 5739.011 of the Revised Code, primarily in a manufacturing operation to produce tangible personal property for sale.”
Q3 Stamped Metal, Inc. v. Zaino, 2001 Ohio 1270 (Ohio 2001). “01(E)(9) excepts sales from taxation when the purpose of the consumer is “[t]o use the thing transferred, as described in section 5739.011 of the Revised Code, primarily in a manufacturing operation to produce tangible personal property for sale.”
— Ohio Rev. Code § 5739.011(B)(5) — 1 case
Ellwood Engineered Castings Co. v. Zaino, 98 Ohio St. 3d 424 (Ohio 2003). “” {¶ 30} R.C. 5739.011 delineates various items and then classifies them as either included or not included in the term “thing transferred” for purposes of R.”
— Ohio Rev. Code § 5739.011(B)(8) — 1 case
E. Mfg. Corp. v. Testa (Slip Opinion), 2018 Ohio 2923 (Ohio 2018). “Thus, East bears the burden of proving that it is entitled to an exemption under R.C. 5739.011. {¶ 11} R.C. 5739.02(B)(42)(g) states that the use tax does not apply "where the purpose of the purchaser is * * * [t]o use the thing transferred, as described in section 5739.”
— Ohio Rev. Code § 5739.011(C) — 5 cases
Ellwood Engineered Castings Co. v. Zaino, 98 Ohio St. 3d 424 (Ohio 2003). “” {¶ 30} R.C. 5739.011 delineates various items and then classifies them as either included or not included in the term “thing transferred” for purposes of R.”
Bellemar Parts Indus., Inc. v. Tracy, 725 N.E.2d 1132 (Ohio 2000). “This conclusion is supported by R.C. 5739.011, which provides guidance as to the full term “thing transferred” for purposes of the manufacturing exception.”
Q3 Stamped Metal, Inc. v. Zaino, 751 N.E.2d 1001 (Ohio 2001). “01(E)(9) excepts sales from taxation when the purpose of the consumer is “[t]o use the thing transferred, as described in section 5739.011 of the Revised Code, primarily in a manufacturing operation to produce tangible personal property for sale.”
Q3 Stamped Metal, Inc. v. Zaino, 2001 Ohio 1270 (Ohio 2001). “01(E)(9) excepts sales from taxation when the purpose of the consumer is “[t]o use the thing transferred, as described in section 5739.011 of the Revised Code, primarily in a manufacturing operation to produce tangible personal property for sale.”
Bellemar Parts Indus., Inc. v. Tracy, 2000 Ohio 343 (Ohio 2000). “6 January Term, 2000 {¶ 17} This conclusion is supported by R.C. 5739.011, which provides guidance as to the full term “thing transferred” for purposes of the manufacturing exception.”
— Ohio Rev. Code § 5739.011(C)(5) — 2 cases
Ellwood Engineered Castings Co. v. Zaino, 98 Ohio St. 3d 424 (Ohio 2003). “” {¶ 30} R.C. 5739.011 delineates various items and then classifies them as either included or not included in the term “thing transferred” for purposes of R.”
E. Mfg. Corp. v. Testa (Slip Opinion), 2018 Ohio 2923 (Ohio 2018). “Thus, East bears the burden of proving that it is entitled to an exemption under R.C. 5739.011. {¶ 11} R.C. 5739.02(B)(42)(g) states that the use tax does not apply "where the purpose of the purchaser is * * * [t]o use the thing transferred, as described in section 5739.”
— Ohio Rev. Code § 5739.011(C)(6) — 4 cases
In re Allied Consol. Indus., Inc., 602 B.R. 645 (Bankr. N.D. Ohio 2019). “Under O.R.C. § 5739.011(B)(11), repairs on, and fuel used by, equipment found exempt from use tax under the Manufacturing Exemption are also exempt.”
E. Mfg. Corp. v. Testa (Slip Opinion), 2018 Ohio 2923 (Ohio 2018). “Thus, East bears the burden of proving that it is entitled to an exemption under R.C. 5739.011. {¶ 11} R.C. 5739.02(B)(42)(g) states that the use tax does not apply "where the purpose of the purchaser is * * * [t]o use the thing transferred, as described in section 5739.”
Q3 Stamped Metal, Inc. v. Zaino, 751 N.E.2d 1001 (Ohio 2001). “01(E)(9) excepts sales from taxation when the purpose of the consumer is “[t]o use the thing transferred, as described in section 5739.011 of the Revised Code, primarily in a manufacturing operation to produce tangible personal property for sale.”
Q3 Stamped Metal, Inc. v. Zaino, 2001 Ohio 1270 (Ohio 2001). “01(E)(9) excepts sales from taxation when the purpose of the consumer is “[t]o use the thing transferred, as described in section 5739.011 of the Revised Code, primarily in a manufacturing operation to produce tangible personal property for sale.”
— Ohio Rev. Code § 5739.011(C)(9) — 1 case
Gen. Motors Corp. v. Wilkins, 806 N.E.2d 517 (Ohio 2004). “{¶ 27} In addition, R.C. 5739.011(C)(9) provides that a motor vehicle “registered for operation on public highways” is not a “thing transferred” for the purposes of the manufacturing exception; as a result, motor vehicles are not excepted from sales tax under the manufacturing…”
— Ohio Rev. Code § 5739.011(D) — 3 cases
Ellwood Engineered Castings Co. v. Zaino, 98 Ohio St. 3d 424 (Ohio 2003). “” {¶ 30} R.C. 5739.011 delineates various items and then classifies them as either included or not included in the term “thing transferred” for purposes of R.”
Lafarge N. Am., Inc. v. Testa (Slip Opinion), 2018 Ohio 2047 (Ohio 2018). “See R.C. 5739.011(A)(6) (defining "continuous manufacturing operation" as "the process in which raw materials or components are moved through the steps whereby manufacturing occurs").”
In re Allied Consol. Indus., Inc., 602 B.R. 645 (Bankr. N.D. Ohio 2019). “Under O.R.C. § 5739.011(B)(11), repairs on, and fuel used by, equipment found exempt from use tax under the Manufacturing Exemption are also exempt.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.