Frequently Asked Questions

The Ohio Department of Taxation has compiled a list of frequently asked questions covering many different categories.

To view the questions, click on the "Select Category" bar and then click on the category you are interested in. A list of questions will appear pertaining to that category. Then click on the question you are inquiring about and the answer will appear.

Are building and construction materials taxable?

Yes, items that become a part of real property are taxable unless the contractee is:

  • the State of Ohio or one of its political subdivisions;
  • the federal government;
  • a house of worship or religious education;
  • a non-profit organization operated for certain charitable purposes as defined in the sales tax law;
  • contracting for the original construction of a sports facility under section 307.696 of the Ohio Revised Code;
  • contracting for a hospital facility entitled to exemption under section 140.08 of the Ohio Revised Code;
  • contracting for real property located in another state when the materials are not subject to tax in that state; or
  • contracting for a horticulture or livestock structure for a person engaged in the business of horticulture or producing livestock.

Also, building and construction materials sold to a construction contractor for incorporation into real property outside this state are not subject to Ohio sales or use tax if such materials would be exempt from tax when sold to the contractor in the other state. The contractee’s exemption does not apply to the contractor’s tools, equipment, rentals of personal property, form lumber, temporary items such fencing, lighting, etc., and any other purchases of tangible personal property, or taxable services, not incorporated into real property.