N.J. Admin. Code § 18:24-28.3

Current through Register Vol. 56, No. 11, June 3, 2024

Section 18:24-28.3 - Claiming races

(a) A sale of a race horse is deemed to have occurred when it is claimed in a claiming race within New Jersey.

(b) A claim or purchase of a horse is made when a person acquires a horse as a result of a successful bid placed prior to a claiming race. Title is passed once the race begins.

(c) For purposes of computing the sales tax due, if no previous purchases have been made within the calendar year, the full purchase price is subject to sales tax. If previous purchases have been made in the calendar year, the sales tax is imposed only on the portion of the total purchase price that exceeds the highest of any prior purchase prices paid for the same horse within the State in the same calendar year. The sales tax is collected at the track at the time the claim is paid.

Example 1: Horse X is entered in a $ 10,000 claiming race at Monmouth Park. ABC Farms claims the horse. Horse X has not been previously claimed in the same calendar year. A taxable transaction has taken place and the tax due is $ 700.00.

Example 2: Same facts as Example 1, but Horse X had previously been claimed twice in the same calendar year for $ 3,000 and $ 5,000. A taxable transaction has taken place and the tax due is $ 350.00 ($ 10,000 - $ 5,000 = $ 5,000; $ 5,000 x.07 = $ 350.00).

N.J. Admin. Code § 18:24-28.3

Amended by 48 N.J.R. 824(a), effective 5/16/2016