The service of boarding horses is subject to sales tax, including charges for feed.* Taxable services include the boarding of horses used for racing, pleasure riding, or show. The person providing the boarding service may purchase without tax, for resale, the feed for the horses that are boarded by providing the seller of the feed with a fully completed exemption certificate (Form S-211 or
S-211E) claiming resale.
Horse training, however, is a nontaxable service. If there are separate and optional charges for the boarding and training, only the charge for boarding is taxable. If the products are not separate and optional from each other, the entire charge for boarding and training is taxable.
The tax treatment of other services that may be provided is as follows:
- Riding lessons are not taxable.
- Hourly horse rental fees are taxable.
- Grooming, including shoeing of horses, is taxable.*
- Medical services and drugs provided to horses by veterinarians are not taxable.
- Horses used for racing, pleasure riding, or show are taxable.
- Hauling horses to and from a stable is not a taxable service, unless the service is provided with a taxable service, such as boarding. A charge for transportation, by itself or when provided with a nontaxable product or service, is not taxable.
*Boarding or grooming services for horses that are used in the business of farming are exempt from tax. In order to claim the exemption, the purchaser must provide the seller with a fully completed exemption certificate (Form S-211 or
S-211E) claiming the farming exemption.
May 6, 2019