Tax Type
Retail Sales and Use Tax
Description
Sale of Horses.
Topic
Taxability of Persons and Transactions
Date Issued
09-29-1966
This will acknowledge your letter of September 21, in which you ask a series of questions concerning transactions for the purpose of determining whether or not such transactions are subject to the sales tax. These questions are as follows:
"1. Sales of Thoroughbred Yearlings Either by Private Sale or at Public Auction These yearlings may be purchased for various reasons, two of which appear to fall within the aforementioned exemption within regulation 1-4.
"a. Purchases of yearlings to be used for breeding stock. However, to enhance their value as breeding stock they may be put to another use until maturity such as racing, showing, polo, or hunting.
"b. Purchases by individuals for resale This also could require training of the horse for another use to facilitate their resale. These purchasers would appear to be in a category similar to that of a wholesaler.
"2. Stallion Services to be Utilized by Individuals for:
"a. The raising of yearlings for resale
"b. For the development of stock to be raced or put to some other use and upon maturity to be used for breeding stock.
"3. Sales of Syndication Shares in a Stallion Where a Shareholder Receives an Absolute Undivided Interest in the Stallion Rather Than the Mere Right to Use His Services.
"4. Sales of Horses Not Suitable for Breeding to Dealers Who Would Train the Horses for Other Uses as Aforementioned, for Resale
"5. Purchases by Individuals in the Horse Industry of Feed, Veterinary Medicine, and Other Items for Them to Conduct their Businesses'
We have considered these questions and have conferred with the Honorable C. H. Morrissett, State Tax Commissioner, and, in his opinion, all of these transactions are subject to the sales tax. It does not appear that the sales in question would come within the exemption set forth in Regulation 1-4.
Attorney General's Opinion