Cincinnati Golf Mgmt., Inc. v. Testa
Annotate this CaseIn this case, Appellants, Cincinnati Golf Management, Inc. (CGMI) and the City of Cincinnati, challenged a consumer's use-tax assessment issued by the tax commissioner against CGMI. The commissioner assessed tax with respect to purchases that the commissioner deemed to be taxable under the sales and use tax laws of Ohio. Appellants asserted that because CGMI made the purchases as an agent for the City, the purchases were exempt as sales to a political subdivision pursuant to Ohio Rev. Code 5739.02(B)(1). Both the commissioner and the Board of Tax Appeals (BTA) found that CGMI, acting in its capacity as an independent contractor under the management agreement between it and the City, did not qualify as an agent of the City with respect to the sales at issue. Accordingly, the BTA upheld the assessment. The Supreme Court affirmed, holding (1) Appellants' arrangements did not satisfy the elements of agency for purposes of section 5739.02(B)(1); and (2) purchases by CGMI did not constitute sales to the City under the sales tax law's definition of a sale.
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