Ohio § 5739.011

§ 5739.011.

(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.