K-Mart Corp. v. Limbach

The Tax Commissioner argues that the use of the computers was preliminary to the actual making of retail sales; K-Mart claims that the computers were used directly in making retail sales. We reject the Tax Commissioner’s argument and hold that K-Mart’s pharmacy computer system was used directly in making retail sales.

R.C. 5739.01(E)(2) excepts from sales tax sales of items used directly in “making retail sales.”1 R.C. 5739.01(0) supplies the appropriate definition:

“ ‘Making retail sales’ means the effecting of transactions wherein one party is obligated to pay the price and the other party is…