Union Carbide Corp. v. Limbach

R.C. 5739.02(B)(15) excepts from the sales tax a manufacturer’s purchases:

“ * * * of machinery [and] equipment * * * for use in packaging tangible personal property produced for sale * * *. Packages include * * * cartons, crates, boxes, * * * and other similar devices and containers and ‘packaging’ means placing therein.” (R.C. 5741.02[C][2] makes the same exception from the use tax.)

In analyzing the applicability of this exception we “ * * * focus upon the distinct function of each item of tangible personal property subject to assessment and its relationship to” the packaging process. Bird &…