Silver Oil Co. v. Limbach

Under R.C. 5739.01 (E)(2), transactions in which the purpose of the consumer is to “* * * use or consume the thing transferred * * * directly in making retail sales * * *” are excepted from the definition of “retail sale” and, thus, from the sales tax.

During the audit period, “making retail sales” was defined in R.C. 5739.01(P) (now [0]) as:

“* * * [T]he effecting of transactions wherein one party is obligated to pay the price and the other party is obligated to transfer title to or possession of the item sold, but it does not include the delivery of items thereafter nor the preliminary acts…