Basic Distribution Corp. v. Ohio Department of Taxation

Appellee Basic Distribution Corporation sells and distributes electrical supplies to construction contractors, manufacturers, and maintenance firms, for resale or for incorporation into real property. In April 1994, Ohio Department of Taxation agent Jenny Gleich telephoned Basic’s vice president of finance, Aurel Balcarcel, to inform him that appellant, the Ohio Department of Taxation, was going to conduct a tax audit of Basic’s sales and purchases for the period from October 1, 1990 to March 31, 1994.1 Due to the large number of potentially exempt sales, Gleich told Balcarcel that she…