Ohio § 5701.08

§ 5701.08.

As used in Title LVII of the Revised Code: (A) Personal property is “ used ” within the meaning of “ used in business ” when employed or utilized in connection with ordinary or special operations, when

acquired or held as means or instruments for carrying on the business, when kept and

maintained as a part of a plant capable of operation, whether actually in operation

or not, or when stored or kept on hand as material, parts, products, or merchandise.  Machinery and equipment classifiable upon completion as personal property while

under construction or installation to become part of a new or existing plant or other

facility is not considered to be “used” by the owner of such plant or other facility

within the meaning of “used in business” until such machinery and equipment is installed

and in operation or capable of operation in the business for which acquired.  Agricultural products in storage in a grain elevator, a warehouse, or a place of

storage which products are subject to control of the United States government and

are to be shipped on order of the United States government are not used in business

in this state. (B) Merchandise or agricultural products shipped from outside this state and held in

this state in a warehouse or a place of storage without further manufacturing or processing

and for storage only and for shipment outside this state are not used in business

in this state.  Such property qualifies for this exception if division (B)(1) or (2) of this section

applies: (1) During any period that a person owns such property in this state: (a) The property is to be shipped from a warehouse or place of storage in this state

to the owner of the property or persons other than customers at locations outside

this state for use, processing, or sale;  or (b) The property is located in public or private warehousing facilities in this state

which are not subject to the control of or under the supervision of the owner of the

property or manned by its employees and from which the property is to be shipped to

any person, including a customer, outside this state. (2) During the first twenty-four calendar months that a person first owns such property

in this state, the property is held in a warehouse or place of storage in this state

located within one mile of the closest boundary of an airport, and is shipped to any

person, including a customer, outside this state. For the purposes of division (B)(2) of this section, “ airport ” means any airport, as defined in division (C) of section 4561.01 of the Revised Code , which is approved by the department of transportation under section 4561.11 of the Revised Code to be used for commercial purposes, is regularly served by only one air carrier authorized

to do so under 14 C.F.R., and is not a public airport as defined in 49 U.S.C. Appx.

2202(a)(17) as existing on July 26, 1991. (3) For property that may meet the condition for the exception provided in division (B)(2)

of this section, if it is not known at the conclusion of a reporting period whether

the property yet qualifies for such exception, the owner of such property shall return

it for taxation.  If it is later determined that the returned property does so qualify, the owner

may apply for a final assessment and refund on the property as provided in section 5711.26 of the Revised Code . (C) Leased property used by the lessee exclusively for agricultural purposes and new

or used machinery and equipment and accessories therefor that are designed and built

for agricultural use and owned by a merchant as defined in section 5711.15 of the Revised Code are not considered to be “used” within the meaning of “used in business.” (D) Moneys, deposits, investments, accounts receivable, and prepaid items, and other

taxable intangibles are “used” when they or the avails thereof are being applied,

or are intended to be applied, in the conduct of the business, whether in this state

or elsewhere. (E) “ Business ” includes all enterprises, except agriculture, conducted for gain, profit, or income

and extends to personal service occupations.