Cal. Code Regs. tit. 18 § 1046

Current through Register 2024 Notice Reg. No. 50, December 13, 2024

Section 1046 - Horses Subject to AD Valorem Taxation

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 horse race 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:

	Agency	Breed
	The Jockey Club..........................	..........................Thoroughbred
	The American Quarter Horse Association..........................	..........................Quarter Horse
	The United States Trotting Association..........................	..........................Standardbred
	The Appaloosa Horse Club..........................	..........................Appaloosa Horse
	The Arabian Horse Registry of America..........................	..........................Arabian Horse

Cal. Code Regs. Tit. 18, § 1046

1. New section filed 11-1-72; effective thirtieth day thereafter (Register 72, No. 45).
2. Amendment to subsection (b) filed 5-2-74; effective thirtieth day thereafter (Register 74, No. 18).
3. Amendment filed 8-27-87; operative 9-26-87 (Register 87, No. 35).

Note: Authority cited: Section 15606, Government Code; and Section 5781, Revenue and Taxation Code. Reference: Sections 5703, 5710, 5711 and Part 12, Division 1, Revenue and Taxation Code; and Sections 19409, 19413.5, 19416, 19416.5 and 19416.7, Business and Professions Code.