Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
210.0000 DEMONSTRATION, DISPLAY AND USE OF PROPERTY HELD FOR RESALE—General—Regulation 1669
210.0593.125 Use of Stallions and Mares. The test breeding of a stallion five or six times, in a year during which it was being held for resale, with no fee being charged to the owner of the mares, is consistent with nontaxable demonstration and display. The use of a stallion as breeding stock would involve much more frequent breeding during a one year period and would, of course, produce a fee for each effort.
Similarly, the breeding of mares to demonstrate their fertility is not a taxable use. A mare sold while "in foal" or "with foal at side" does not necessarily lead to the conclusion the owner made a taxable use of the mare unless the owner has held ownership for two years or more. Other evidence of taxable use would be ownership for two years even if the mare has not foaled during that time, or the production of two foals during the period of ownership. 2/21/68.