LaFarge wins tax battle with Ohio - WFMJ.com News weather sports for Youngstown-Warren Ohio

LaFarge wins tax battle with Ohio

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LORDSTOWN, Ohio -

A Lordstown company that turns a steel manufacturing byproduct into construction materials has won a legal battle with the state of Ohio over taxes.

The Ohio Supreme Court has ruled in favor of LaFarge North America, which challenged the Department of Taxation's levy of nearly $700,000 in assessments, penalties, and interest against the companies slag-making operation in Lordstown.

The use tax was levied on fuel and parts used by machinery used to crush and transport slag from a large “slag mountain” that's been created since 1926 by local steel companies.

State officials said they could levy the tax, arguing that gathering the slag was conducted prior to the manufacturing process in which the material is crushed into smaller pieces used for construction, often as a base for roads.

However, LaFarge successfully argued in court that equipment such as a bulldozer, dump trucks, and front-end loaders used at the slag mountain are used to begin the process of crushing the material and should not be subject to the use tax.

The Supreme Court sent the issue back to the Ohio Board of Tax Appeals to come up with a solution in favor of LaFarge.

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