KRS 139.531 — Application of taxes to horse industry

(1) Notwithstanding any other provisions of this chapter to the contrary, the taxes
imposed by this chapter shall apply to:
(a) Fees paid for breeding a stallion to a mare in this state;
(b) Sales of horses unless exempted under the provisions of subsections ( 2)(a) or
(2)(d) of this section; and
(c) The sales price of any horse claimed at any race meeting within this state.
(2) In addition to any other exemptions provided for the horse industry in this chapter,
the taxes imposed under the provisions of this cha pter shall not apply to the
following activities:
(a) The sale or use of horses, or interests or shares in horses, provided the
purchase or use is made for breeding purposes only;
(b) The use of a stallion for breeding purposes by an owner or shareholder o f the
stallion;
(c) The trading of stallion services by an owner or shareholder of the stallion;
(d) The sale of horses less than two (2) years of age at the time of sale, provided
the sale is made to a nonresident of Kentucky. For the purposes of this section,
a nonresident means a person as defined in KRS 141.010 who is not a resident
in this state as defined by KRS 141.010 or who is not commercially domiciled
in this state as defined in KRS 141.901;
(e) The boarding and training of horses within this state; and
(f) The temporary use of horses within this state for purposes of racing,
exhibiting, or performing.