For Industry Professionals, Managers, Trades & Suppliers
J. NORMAN STARK, ATTORNEY and REGISTERED ARCHITECT
JURIS DOCTOR, B. ARCHITECTURE, B.F.A.
17000 St. Clair Avenue . Cleveland, Ohio 44110-2535
Tel.: (216) 531-5310 . Fax: (888) 833-5860 . E-Mail: www.Normstark@aol.com
In Florida . 6500 Midnight Pass Rd. #105 . Sarasota, FL 34242 . (941) 349-2061.
Concrete, Manufactured When
Concrete manufacture may not appear to be a subject contested in the law, unless
as the result of some defect or construction-related claim. Nevertheless, the Supreme
Court of Ohio considered, for tax purposes, when the manufacture of concrete is actually
performed as a salable product, i.e: "When does actual manufacturing or processing begin
or end." [Page 277]
The Board of Tax Appeals applied the test established by this court in the syllabus of
Youngstown Building Material & Fuel Co. v. Bowers, Tax Commr., 167 Ohio St. 363, 149 N.
E. (2d), 1, which is as follows:
"In determining whether tangible personal property is used or consumed directly in the
production of tangible personal property for sale by manufacturing or processing, and,
therefore, whether its sale or use is excepted from taxation under the provisions of
subdivision (E) (2) of Section 5739.01, or subdivision (C) (2) of Section 5741.01,
Revised Code, the test is not whether such property is essential to the operation of an
'integrated plant,' the test to be applied being, when does the actual manufacturing or
processing activity begin and end, and is the property used or consumed during and in
the manufacturing or processing period."
The Board of Tax Appeals found "that the wetting of aggregates with water, prior to
transportation by the crane and bucket to the weigh hopper or batching bin, does not
constitute the beginning of the manufacturing or processing of concrete.
The addition of the water to the aggregate does not transform or convert the aggregate
into any different product nor into a different state or form from that in which it
originally existed. We are of the opinion that the mere addition of water to gravel does
not constitute the start of processing or manufacturing of concrete and that the
processing or manufacturing of concrete did not start until after the various raw
materials were commingled in the body of the truck and dumped in the concrete mixer. It
is our further opinion that the processing or manufacturing engaged in by appellant did
not end until after the concrete was scored with the saw blades here in issue, and that
all the equipment used in the forming and spreading of the concrete was used directly in
processing concrete for sale." V. N. HOLDERMAN PAVING CO. v. BOWERS (1960), 171 Ohio
St. 275, 277.
"The definition of insanity is doing the same thing over and over and expecting a different result."
AUTHOR / EDITOR: J. NORMAN STARK is an Attorney-at-Law, a Registered Architect, (AIA, NCARB) Registered
Landscape Architect, Interior Designer, Planner and Senior Appraiser (ASA), admitted to practice law before the Bar of
Ohio, the US District Courts, Ohio and Illinois (Central Dist.), the US Court of Appeals, and the United States Supreme
Court. He is a Mediator, Arbitrator and Litigator with experience in Business, Construction Law, and Public Works, and with
additional experience in Real Estate, Construction Attorney (Legal Project and Crisis Management), and as an Expert Witness
(Forensic Architect). His office is in Cleveland, Ohio.