Sales Tax Regulations and Exemption
California State Sales Tax applies to all horses sold at this auction, except for the following exemptions.
Horses to be used at a location outside the State of California:
Each horse for which an exemption is sought is purchased only for use outside the State of California. Each horse must be shipped via a licensed carrier directly to a location outside the State of California. The purchaser must not take possession or control of the horse prior to its arrival at the location outside the State of California.
Any purchaser seeking an exemption from sale tax who meets these requirements must complete the Pre-Sale Interstate Delivery Agreement form and provide Barretts with a completed Bill of Lading from a licensed carrier. NO SALES TAX EXEMPTION WILL BE ALLOWED IF THE “PRE-SALE INTERSTATE DELIVERY AGREEMENT" FORM IS NOT PROPERLY FILLED OUT IN ITS ENTIRETY.
Racehorse Breeding Stock Partial Exemption:
A racehorse that is capable of reproduction and for which the purchaser's sole intent is to use the racehorse for breeding purposes may be exempt from the general fund portion of the sales and use tax rate (currently 5 1/2 %). Any purchaser seeking a partial exemption form sales tax who meets these requirements must complete the Certificate for Partial Exemption form, which is available in the sales office.
Additionally, purchasers who are purchasing horses for resale may be exempt from sales tax if they provide a properly completed California State Board of Equalization Resale Certificate. Please note that sales tax will be applicable on the subsequent resale of the property.