Ohio Supreme Court Upholds CAT on Out-of-State Manufacturer for Goods Temporarily Transported in State

The Ohio Supreme Court reversed the Board of Tax Appeals’ decision, ruling that gross receipts from products shipped to an Ohio distribution center were properly subject to Ohio’s commercial activity tax (CAT). The taxpayer, an out-of-state manufacturer, sold personal care products that were shipped to a distribution center in Ohio, though the purchaser later transported these products to retailers outside the state. The taxpayer requested a refund on CAT paid, claiming that the Ohio Tax Commissioner didn’t have the authority to tax the transported goods because they were ultimately delivered out of the state, and, thus, lacked an Ohio situs. ...