Van Dyne Crotty Co. v. Limbach

Prior to November 15, 1981, companies that cleaned the tangible personal property of others and companies that operated a towel and linen service neither paid sales tax on purchases of items used directly in their businesses nor collected sales tax on transactions with their customers. According to former R.C. 5739.01 (E)(4), a retail sale did not include:

“* * * [S]ales * * * in which the purpose of the consumer is:

U * * *

“(4) To use or consume the thing directly in industrial cleaning of tangible personal property; to use or consume the thing directly in cleaning of the tangible personal…