Penton Publishing Co. v. Kosydar

The issue to be determined in this cause is whether the transfer of the magazines to the readers by Penton Publishing Company is a “sale” under B. C. 5739.01(B). If it is a “sale,” Penton should not be required to pay sales or use taxes on materials and machinery purchased for use in the production of the magazines during the audit period.* B. C. 5739.01(E)(2).

B. C. 5739.01(E)(2) excepts from the definition of “retail sale” and “sales at retail” those sales in which the purpose of the consumer is:

“To incorporate the thing transferred as a material or a part, into tangible personal property to…