Ford Motor Co. v. Limbach

The issue presented in the case sub judice concerns the tax status of a conveyor system which transports a scrap metal by-product of appellee’s stamping operation to a baling facility which, in turn, prepares the scrap material for sale to industrial customers. The BTA rationalized the exemption of this equipment under R.C. 5739.01(E)(2) as follows:

“In the present situation, Ford Motor’s excess metal is in the form of chips which result after a product is pressed out from the sheet metal. The metal chips are not waste materials, but rather, are materials which are further processed into a…