Interactive Information Systems, Inc. v. Limbach

The sole issue presented by this case is whether the appellee’s computer hardware qualified for the statutory exemptions from sales and use taxes by virtue of its use in the production of computer software. Although R.C. 5739.02 and 5741.02 respectively impose a sales and use tax on “each retail sale” and the use of “tangible personal property” in this state, the appellee contends that its computer hardware is excepted from sales tax pursuant to R.C. 5739.01(E)(2) and, therefore, from use tax pursuant to R.C. 5741.02(C)(2).1

R.C. 5739.01(E)(2) provides, in relevant part:

“(E) ‘Retail sale’ and…