City and County of Denver, Colorado
Topic No. 40
The sales and purchases of horses are taxable unless they can be used for breeding purposes, or unless they are purchased for resale.
1 Leisure Time Stables purchased 10 geldings and 10 mules for their clients to ride on guided tours. Geldings and mules cannot reproduce so they do not qualify for the breeding-purposes exemption. This transaction is subject to sales or use tax.
2. Leisure Time Stables purchased one stallion and five mares for future breeding of their own stock. Since these horses will be used for breeding purposes, this transaction is specifically exempt from sales or use tax.
* DRMC Section 53-25(1). Imposition of tax.
* DRMC Section 53-26(5). Exemptions.
* DRMC Section 53-96(1). Imposition of tax.
* DRMC Section 53-97(5). Exemptions
THE ABOVE INFORMATION IS A SUMMARY IN LAYMAN'S TERMS OF THE RELEVANT DENVER TAX LAW FOR THIS INDUSTRY OR BUSINESS SEGMENT. IT IS NOT INTENDED FOR LEGAL PURPOSES TO BE SUBSTITUTED FOR THE FULL TEXT OF THE DRMC AND APPLICABLE RULES AND REGULATIONS.