Anheuser-Busch, Inc. v. Tracy

R.C. 5739.02 levies an excise tax on all retail sales made in Ohio. R.C. Chapter 5739 excepts certain sales from the definition of retail sales and exempts certain retail sales from the tax. Furthermore, R.C. 5741.02(C)(2) exempts purchases of items from the use tax when the acquisition, “if made in Ohio, would be a sale not subject to the tax imposed by [R.C. Chapter 5739].”

Anheuser-Busch argues that the purchased machinery in dispute is excepted because it used the equipment directly in manufacturing under former R.C. 5739.01(E)(2) and (R)(l), or primarily in a manufacturing operation under…