ST 1979-02 - Mobile Concrete Mixers - May 21, 1979
We have been requested to determine the taxability or
non-taxability of a new type combination truck and concrete
The new mobile truck-mixing equipment differs from other such
equipment, previously ruled on, in that raw materials such as
gravel, sand, cement and water are stored separately in bins
and/or tanks while the unit is being transported to the
customer's site, and the actual mixing takes place at the job
The new mobile unit may be self contained on a truck chassis
or may be mounted on a trailer, complete with its own motor,
which is moved to the job site by a truck tractor.
A review of the K & J Steele of Cincinnati, Inc. vs.
Kosydar decision by the BTA shows clearly that the concrete
mixers involved therein were processing units producing
concrete for sale and that production was not completed until
after the unit had arrived at the job site.
It is our position that the new unit's primary function is
that of processing concrete at the job site, and if such unit
is used primarily to produce concrete for sale such unit will
be considered exempt from sales and use tax.
The trailer mounted unit would be exempt under the above
conditions, however truck tractors used to move the trailer
unit are subject to the tax. Transportation equipment such as
trucks and bins or tanks used to haul to or to load raw
materials into either type of unit, would be subject to
taxation since they would not be involved directly in
The sales tax due on the transfer of the processed concrete
to the purchaser would be based on the total selling price
including, but not limited to, all transportation costs
involved in transferring any of the equipment, supplies or
materials to the place where the concrete is discharged from
If you have any questions regarding this matter, you should
call us at 1-888-405-4039.
OHIO RELAY SERVICES FOR
THE HEARING OR SPEECH IMPAIRED