Lafarge North America, Inc. v. Testa

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At issue was whether the Ohio use tax applied to Lafarge North America, Inc.’s purchases of fuel and repair parts for equipment used to break up and transport solidified slag, a by-product from molten ore during steelmaking, from the “slag mountain," a large slag mass. Whether the tax applied depended on whether the activity was part of Lafarge’s “manufacturing operation” under Ohio Rev. Code 5739.02(B)(42)(g).The Department of Taxation assessed a use tax and penalty against Lafarge for purchases for the equipment at issue. Lafarge challenged the assessment. The tax commissioner determined that the breaking up and transport of slag from the slag mountain preceded Lafarge’s manufacturing operation and that equipment used to move raw materials prior to the start of the manufacturing process was taxable. The Board of Tax Appeals affirmed the tax assessment and penalty. The Supreme Court reversed, holding that Lafarge’s manufacturing operation began once Lafarge cut slag from the mountain and continued as the material was crushed, placed in dump trucks, and transported to a screening plant. View "Lafarge North America, Inc. v. Testa" on Justia Law