Is equipment tax exempt in Ohio?

No, equipment is not automatically tax exempt in Ohio; most business equipment is subject to sales and use tax unless it qualifies for a specific exemption, most commonly the manufacturing exemption.

Ohio treats tangible personal property, including machinery and equipment, as taxable by default. The main exception is equipment used primarily (more than 50% of the time) in a qualifying manufacturing operation, such as production machinery that acts directly on a product, materials handling equipment used in continuous manufacturing, and certain consumables and utilities tied to production. Equipment used mainly for administrative, security, billing, or inventory control functions generally does not qualify, even if it sits on a factory floor. To claim the exemption, the buyer typically provides the seller a completed Ohio exemption certificate (STEC B for recurring purchases, STEC U for a one-time sale) describing the exempt use.

This distinction matters most when you're selling business equipment, since a buyer's exemption claim, or lack of one, affects the transaction but not the equipment's underlying market value. If you're selling machinery in Ohio and need documentation of fair market value for the sale, a tax return, or a lender, a professional appraisal establishes that value independently of any tax exemption question.

Because exemption eligibility depends on specific facts (how the equipment is actually used, what percentage of the time, and in what type of operation), it's worth confirming your situation with the Ohio Department of Taxation or a tax advisor before assuming an exemption applies. If you need a defensible valuation of your equipment for a sale, estate, or financing decision, Ohio Equipment Appraisers can prepare a USPAP-compliant report covering construction, agricultural, manufacturing, medical, and other equipment types across the state.