Ormet Corp. v. Lindley

Appellant, the Tax Commissioner (hereinafter “commissioner”), contends that when a direct pay permit is issued exempting tangible personal property from taxation, and, subsequently, the statutory provision for the exemption is repealed, then the direct pay permit is automatically canceled.

In support of this contention, appellant relies on former R. C. 5739.02(B)(17).2 This provision, commonly referred to as the “use on use” exemption, created “a tax exemption for machinery being used, not to transform raw materials into a part of the product produced for sale, but rather to produce still…