A History of the OCLC Tax-Exemption Status

One of the baffling elements I’ve found in discussions of the history of OCLC is that of its tax exempt status under Ohio law. The latest example of this comes from documents filed in the SkyRiver/Innovative-vs.-OCLC case that make disparaging remarks about how OCLC got its state tax-advantaged status. (The text of the remarks in those documents are included below.) I was curious about this a while back and so did some research on the topic. I had set it aside and forgotten about it until this latest lawsuit brought it up again. So, to set the record straight, here is at least one version — hopefully written from a neutral perspective — of what happened nearly three decades ago.