Asphalt Supplier’s Natural Gas Is Tax-Exempt, Ohio Board Rules

A company that processes asphalt to customer specifications doesn’t owe use tax on its natural gas purchases because the fuel was used in manufacturing operations, the Ohio Board of Tax Appeals ruled Tuesday.

Tax Commissioner Patricia Harris assessed use tax on MGQ Terminal Inc. for 2013 to 2016 after determining that the company was in the business of storage. But the board held that the company’s business qualifies as tax-exempt manufacturing because it uses the natural gas to blend and homogenize refinery waste.

• Under state law, manufacturing operations fall under the exemption when materials are changed into a different form; ...