Thomas Steel Strip Corp. v. Limbach

The consumer pays the sales tax to the vendor. R.C. 5739.03. Under R.C. 5739.01(B)(5), the consumer in a construction contract is the construction contractor, because a construction contract is not a sale of tangible personal property to the owner of the real property. The contractor must pay the tax on his purchase of the materials.

The commissioner argues that the property installed here did not benefit the land but supported machinery and equipment. Thus, according to the commissioner, the property did not become real property. Thomas answers that the property was incorporated into its…