Inland Refuse Transfer Co. v. Limbach

R.C. 5739.01(E)(2) excepts from the sales tax (and R.C. 5741.02[C][2] correspondingly excepts from the use tax) purchases of items used “* * * directly in the rendition of a public utility service * *

In Manfredi Motor Transit Co. v. Limbach (1988), 35 Ohio St. 3d 73, 76, 518 N.E. 2d 936, 939, we set forth the conditions necessary to meet the public utility exception. First, the taxpayer must be a regulated public utility. Second, it must render a public utility service when the items are purchased. Third, it must use the items directly in rendering the public utility service.

In this case, the…