Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2013
 

Revenue and Taxation Code

Property Taxation

Part 12. Taxation of Racehorses

CHAPTER 1. General Provisions and Definitions


Part 12. Taxation of Racehorses*

* Part 12 was added by Stats. 1971, Ch. 1759, p. 3794, operative on July 1, 1972.

† The heading of Chapter 6 (commencing with Section 5801) was repealed by Stats. 1981, Ch. 714, in effect January 1, 1982. Section 401 thereof provided that that repeal shall not affect the existence or validity of the heading of Part 13 (commencing with Section 5800) of Division 1 of the Revenue and Taxation Code, as added by Stats. 1980, Ch. 285.

Chapter 1. General Provisions and Definitions

5701. Legislative finding and intent. The Legislature finds that subjecting racehorses to the general property tax has resulted in a serious lack of uniformity as between one county and another respecting the method used in arriving at an assessed value; that this has resulted in serious inequities between the owners of racehorses depending in part on the county wherein they are assessed; that a continuation of current assessment practices will result in a substantial decrease in the breeding, boarding, and training of racehorses for racing competition in California and that current assessment practices have caused racehorse owners to remove their horses from California to other major breeding states with the result that over a period of time if these assessment practices are continued, both the breeding and racing of racehorses in California will suffer in that the quality and quantity of racehorses will be reduced and impaired; that a severe loss of employment and taxes to breeding and racing will result, attendance at race meetings will decrease, and betting will be reduced with consequent substantial loss of revenue to California. It is the intent of the Legislature, in enacting this part, to establish a more equitable method of taxing racehorses and thereby provide incentives to owners of these horses to maintain their horses within the state by providing for a uniform system of in-lieu taxation for the racehorses subject to the provisions of this part. The Legislature further finds that, because Arabian horses begin racing and breeding at least one year later than other breeds, Arabian horses should be treated equitably by allowing that breed four years before they are required to begin racing or be engaged in breeding activities.

History.—Added by Stats. 1971, Ch. 1759, effective December 16, 1971, operative July 1, 1972. Stats. 1985, Ch. 1250, effective September 30, 1985, substituted "these" for "such" throughout and added the third sentence.

Note.—Stats. 1971, p. 3794, provided that a "racehorse" as defined in Section 5703 of the Revenue and Taxation Code, whether or not such racehorse is exempt under Chapter 3 (commencing with Section 5741) of Part 12 of Division 1 of the Revenue and Taxation Code, shall be exempt from property taxation on and after the lien date for the tax year 1972–1973.

Note.—Stats. 1972, p. 1231, provided that it is the intent of the Legislature that in changing the tax imposed by Part 12 of Division 1 of the Revenue and Taxation Code from a fiscal to a calendar year reporting period that such tax will continue to be in lieu of all taxes according to value beginning with the fiscal year 1972–1973.

5702. Construction. Except where the context otherwise requires, the definitions given in this chapter govern the construction of this part.

Back to top


5703. "Racehorse." "Racehorse" means each live horse, including a stallion, mare, gelding, ridgeling, colt, filly, or foal, that is or will be eligible to participate in or produce foals which will be eligible to participate in a horseracing contest in California wherein parimutuel racing is permitted under rules and regulations prescribed by the California Horse Racing Board. "Racehorse" does not mean or include any horse over three years old, or four years old in the case of an Arabian horse, that has not participated in a horserace contest on which parimutuel wagering is permitted or has not been used for breeding purposes in order to produce racehorses during the two previous calendar years.

History.—Stats. 1972, p. 1226, in effect August 10, 1972, deleted "or" between "colt" and "filly", added "or foal" after "filly", added "or will be" between "that is" and "eligible" in the first sentence, and added the second sentence. Stats. 1985, Ch. 1250, effective September 30, 1985, added ", or four years . . . horse," after "three years old" in the second sentence.

5704. "Owner." "Owner" means the owner of a racehorse or his agent. Any other person claiming, possessing or controlling a racehorse shall provide the name and address of the owner thereof or his agent upon the request of the assessor.

5705. "Annual tax." "Annual tax" means a tax that is imposed on the owner for any racehorse domiciled in the State of California.

History.—Stats. 1972, p. 1226, in effect August 10, 1972, substituted " 'Annual tax' means a tax that is imposed on the owner" for " 'Annual fee' means a fee that shall be paid by the owner" in the first sentence.

5706. "Current calendar year." "Current calendar year" means the yearly period from the first day of January to the last day of December, inclusive for which the tax is imposed.

History.—Added by Stats. 1972, p. 1226, in effect August 10, 1972.

5707. "Previous calendar year." "Previous calendar year" means the calendar year immediately preceding the calendar year for which the annual tax is imposed.

History.—Added by Stats. 1972, p. 1227, in effect August 10, 1972.

5710. "Stallion." "Stallion" means any racehorse which, during the two previous calendar years, has serviced three or more different broodmares for the purpose of producing a racehorse.

History.—Stats. 1972, p. 1227, in effect August 10, 1972, substituted ", during the two previous calendar years, has" for "has at any time" in the first sentence.

Back to top


5711. "Producing broodmare." "Producing broodmare" means a racehorse mare which, during the previous calendar year, has produced a live foal.

History.—Stats. 1972, p. 1227, in effect August 10, 1972, substituted "calendar" for "tax" in the first sentence.

5712. "Nonproducing broodmare." "Nonproducing broodmare" means a racehorse mare which has not produced a live foal during the previous calendar year.

History.—Stats. 1972, p. 1227, in effect August 10, 1972, substituted "calendar" for "tax" in the first sentence.

5713. "Stakes-winning broodmare." "Stakes-winning broodmare" means a broodmare which has won at any time during her life a race with a purse to which owners of participating horses have contributed nomination, entry, or starting fees or a recognized stakes race in which all entrants raced by invitation.

History.—Stats. 1972, p. 1227, in effect August 10, 1972, revised this section.

5714. "Stakes-producing broodmare." "Stakes-producing brood-mare" means a broodmare which has produced at any time during her life a racehorse which has won a race with a purse to which owners of participating horses have contributed nomination, entry, or starting fees or a recognized stakes race in which all entrants raced by invitation.

History.—Stats. 1972, p. 1227, in effect August 10, 1972, revised this section.

5715. "Stakes yearling", "Stakes two-year-old", or "Stakes three-year-old." "Stakes yearling", "stakes two-year-old", or "stakes three-year-old" means a racehorse of the designated age which was foaled by a stakes-winning or stakes-producing broodmare.

History.—Stats. 1972, p. 1227, in effect August 10, 1972, expanded the definition to include "two-year-olds" and "three-year-olds."

5716. "Yearling." "Yearling" means a racehorse which was foaled during the previous calendar year.

History.—Stats. 1972, p. 1227, in effect August 10, 1972, substituted "during the previous calendar year" for "prior to January 1 of the previous tax year" in the first sentence.

5716.5. "Foal." "Foal" means a racehorse which is foaled during the current calendar year.

History.—Added by Stats. 1972, p. 1227, in effect August 10, 1972.

Back to top


5717. "Active racehorse." "Active racehorse" means a racehorse which has participated in a horseracing contest on which parimutuel wagering was permitted during the previous calendar year.

History.—Stats. 1972, p. 1228, in effect August 10, 1972, substituted "calendar" for "tax" in the first sentence.

5718. "Nonactive racehorse." "Nonactive racehorse" means any racehorse which has not participated in any horseracing contest on which parimutuel wagering was permitted during the previous calendar year, except a racehorse three years of age or younger.

History.—Stats. 1972, p. 1228, in effect August 10, 1972, substituted "calendar" for "tax" and added ", except a racehorse three years of age or younger" after "year" in the first sentence.

5719. "Live foal." "Live foal" means a foal which has lived for a period of three days or more.

5720. "Stud fee." "Stud fee" is the sum of money charged by a stallion owner for the mating of his stallion to a broodmare.

5720.5. "Stud fee classification." "Stud fee classification" will be determined by the highest stud fee charged for the mating of a mare to a stallion during the previous calendar year.

History.—Stats. 1972, p. 1228, in effect August 10, 1972, substituted "previous calendar" for "prior tax" in the first sentence.

5720.6. "Domicile." "Domicile" means:

(a) The home ranch on January 1 of the current calendar year of the owner of a racehorse or other place where the horse is quartered when not racing or in training to race.

(b) The residence on January 1 of the current calendar year of the owner of any racehorse that is not quartered at a home ranch or other location when not racing or in training to race.

History.—Added by Stats. 1972, p. 1228, in effect August 10, 1972.

Back to top