I. EXEMPTIONS -

Resale Exemption -

Domokur Aviation Services, LLC v. McClain, Ohio BTA Case No. 2019-694 (September 15, 2020). Applying the Supreme Court’s decision in Pi in the Sky, LLC v. Testa, 155 Ohio State 113, 2018-4812, which involved parallel facts, the BTA denied the resale exemption for a $2.9 million aircraft purchase. The BTA cited the following factors to support its finding that the taxpayer was not engaged in a for-profit business operation to support the resale exemption:

• The aircraft was not openly marketed to others (outside the related party lessee).

• The rental rate was not established to be commercially reasonable.

• The taxpayer entity was not separable from the owner/lessee.