Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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110.0000 ANIMAL LIFE AND FEED—Regulation 1587

Annotation 110.0200


110.0200 Race Horses—General Rules of Application of Tax.

1. The sales or use tax, as the case may be, applies with respect to sales of, and the storage, use, or other consumption of race horses in this state to the same extent as to other tangible personal property the sale, storage, use, or other consumption of which is not specifically exempted from the tax.

2. Entering a horse in a race for which a purse is offered is a "use" other than retention, demonstration, or display for the purpose of sale and is subject to the use tax in a proper case, regardless of the subsequent sale of the horse.

3. Section 6015 of the Sales and Use Tax Law provides that a person conducting a claiming race is the retailer of horses claimed. 9/15/50; 10/08/02. (Am. 2003–2).

(Note: Revenue and Taxation Code section 6358.5, operative September 1, 2001, provides a partial exemption from the state portion of the sales and use tax for sale or use of racehorse breeding stock under specified circumstances.)