Ohio Enacts Bill Exempting R&D Property for Aerospace Vehicles from Sales Tax

Ohio enacted legislation that, effective Sept. 10, creates a sales tax exemption for property related to the research and development of aerospace vehicles.

The legislation (H.B. 487) exempts from sales tax, sales of tangible personal property, including materials and other consumables, or services used or consumed in performing research and development activities with respect to aerospace vehicles.

Also exempted from tax are human performance equipment and technology associated with operating and testing aerospace vehicles. The legislation defines “aerospace vehicles” as any manned or unmanned aviation device including, but not limited to, aircraft, airplanes, helicopters, missiles, rockets, and space vehicles.

In addition, the legislation provides that telecommunications equipment used in direct marketing no longer needs to be purchased from a direct marketing vendor to be exempt from sales tax.

Dealers in intangibles are required to remit tax payments to the tax commissioner instead of the treasurer, and the commissioner, rather than the treasurer, must ascertain the difference in tax liability for an amended or final assessment that is certified.

Dealers in intangibles will no longer receive a certificate of abatement from the commissioner for a refund of overpaid taxes. Instead they must apply for a refund of overpaid taxes by filing an application for final assessment.