Click here to view Steve’s January 17, 2013 report which was presented to the Taxation Section of the Ohio State Bar Association as Chair of the Sales/Use Tax Subcommittee. The Bay Mechanical Supreme Court decision provides a useful summary of the necessary evidence to support the one-year permanent assignment exemption from an otherwise taxable employment service. Although “permanent assignment” language or its equivalent is strongly suggested, arguably a taxpayer can prevail as long as the contract language is not inconsistent with permanent assignment, while performance is consistent with permanent assignment.

Also, the BTA recognized that penalty abatement can be pursued via a refund claim outside a Petition for Reassessment. See Smedley.