Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
570.0000 USE OF PROPERTY IN STATE AND USE TAX GENERALLY
570.1170 Race Horses. The training of a horse is a use. Therefore, when training occurs outside the state for more than three months, there has been a substantial out-of-state use of the horse preventing the application of use tax even if the horse is first raced in California.
If the horse trains out of state, comes into California in less than 90 days, and is first raced here and then removed from the state and it does not return for a year, use tax also would not apply. This is the case both when the owner is an out-of-state resident or in-state resident who does not maintain any stables in California. 1/21/66.