Ohio: Resale Exemption Does Not Apply to Property Substantially Enhanced After Original Purchase

• Ohio BTA held that a business that purchased and substantially enhanced three automobiles owed Ohio use tax on the purchases.
• The resale exemption did not apply because the cars were fundamentally altered before resale. State law states that an original purchase is not a retail sale and not subject to sales tax if the intent is to resell without changing the goods or services.
• The business owner testified that he substantially changed the cars before reselling them and that his business purpose was to buy, enhance, and resell vehicles.

Source Deloitte

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