Property Taxes Law Guide – Revision 2013
 

Rule 1046. Horses Subject to Ad Valorem Taxation.

Reference: Part 12, Division 1, Revenue and Taxation Code, Sections 5703, 5710, 5711, Revenue and Taxation Code, and Sections 19409, 19413.5, 19416, 19416.5, 19416.7, Business and Professions Code.

A horse over three years of age, or over four years of age in the case of an Arabian horse, that, in the two previous calendar years, has neither participated in a horserace contest on which parimutuel wagering is permitted nor been used for breeding purposes in order to produce a racehorse eligible to participate in a horserace contest on which parimutuel wagering is permitted is not a racehorse within the meaning of Part 12 of Division 1 of the Revenue and Taxation Code. Any such horse is subject to ad valorem taxation unless otherwise exempt.

(a) A horse used for breeding purposes means a registered male animal that has serviced three or more registered females for the purpose of producing a racehorse during the two previous calendar years or a registered female animal that has been bred to a registered male for the purpose of producing a racehorse during the two previous calendar years.

(b) In order to qualify as a racehorse a horse must be registered or eligible to be registered with an agency recognized by the California Horse Racing Board. Agencies currently recognized are as follows:

History: Adopted October 26, 1972, effective December 1, 1972.

Amended May 1, 1974, effective June 1, 1974.

Amended June 16, 1987, effective September 26, 1987.