COLUMBUS — The Ohio Supreme Court plans to hear arguments in a dispute over promotions including bobbleheads and other items offered by the Cincinnati Reds to ticket buyers.
At issue is whether the Reds are exempt from paying tax on the purchase of the promotional items.
Attorneys for the Reds argue they don’t have to pay tax because they resell the promotional items as part of the ticket package.
The court planned oral arguments for Wednesday morning.
Ohio law exempts companies from paying tax on items they buy to resell.
The state tax commissioner says the promotional items should be taxed because the Reds bought the items as giveaways and they aren’t selling them with the tickets and that the Reds owed about $88,000 in “use tax,” as well as a penalty and interest.
The Reds appealed to the Ohio Board of Tax Appeals, arguing that the promotional items are advertised as “free” to potential ticket buyers, but that the actual costs of the items are factored into the ticket price and that the items are exempt from the sales and use tax.
The panel ruled that, because the price of a ticket for a game with a promotional item is the same as the price for a game without an item, the Reds were not reselling the items, and upheld the commissioner’s decision.