In this matter, the taxpayer usually provided and installed traffic maintenance equipment during its projects. The taxpayer was assessed use tax on the rented equipment.

The taxpayer argued that the leases of equipment should have been exempt as "casual sales." To qualify for the casual sale exemption, the person making the sale must have acquired the tangible personal property for his own use in this state.

Upon review, the Board of Tax Appeals determined that the records showed that upon purchase, the taxpayer initially used the property for its own excavation work. But then it continued as a business that leased equipment as needed. Once the taxpayer developed this systematic recurrence of leasing, these leases ceased to be occasional, casual, or isolated and instead became a business. Accordingly, the assessment was affirmed. Karvo Paving Co., v. Tax Commissioner, Ohio Board of Tax Appeals, No. 2016-782, November 3, 2021