Sales tax on boarding??

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disneyhorse

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I bought a horse from Wisconsin and got a bill for board for the month while I arranged for shipping.

There is itemized description of costs, and one is sales tax on board.

I have never heard of this...

Anyone?

Andrea
 
I can believe it... States are coming up with more and more things to tax. If I sell a horse in CT, I need to charge sales tax - or at least I must report the sale and submit the appropriate tax. Sounds like you are dealing with someone who operates their farm using proper/legal business practices.
 
Hmmm Seems weird...... Board is not really a sale, it's a service.

Maine has sales tax and I don't recall ever being taxed for a service.......
 
In Oklahoma, horses are considered personal property if not used in a farming business and therefore are exempt from Sales Tax as they would be for Ag purposes also. Boarding is a service and is not taxable under the law.

Some states may be different. Call your State Tax Commission and ask, they can usually tell you about other states as well.
 
I'm trying to remember if I've ever paid a tax for a professiona SERVICE... I cannot think of a case and darn sure not on horse boarding.
 
CT taxes a TON of services - be thankful you don't live here. You would need to check the WI tax laws.
 
I'm with the others. I think of boarding as a service and therefore not taxed.
 
OK, I was curious so I looked it up under "horses":

What is subject to Wisconsin sales and use tax?

* The sale of horses for use in racing, pleasure riding, or show is taxable, unless an exemption applies.

* The boarding and maintenance, including exercise, of horses used for racing, pleasure riding, or show are services subject to Wisconsin sales and use tax, unless an exemption applies. However, the retailer may purchase the feed for the animals without tax by supplying a fully completed exemption certificate claiming an exemption for resale.

* The charge for mare care services for horses used for racing, pleasure riding, or show, excluding charges for veterinary services and separately stated charges for foal training, is subject to Wisconsin sales tax, unless an exemption applies.

* The furnishing of horse trail rides is a service subject to Wisconsin sales tax.

* Persons operating riding stables are selling taxable admissions to customer participation events, and are subject to Wisconsin sales tax. In addition persons operating riding stables must pay tax on the purchase of feed, unless an exemption applies (e.g., they also sell feed and purchase it for resale).
 
Interesting. Maybe I won't be shopping in Wisconsin in the future :/

Not like it's a huge deal, just unexpected.
 
Depends on the state. Some say yes, others say no. But as an out of state person, you should be exempt.

In KY breeding fees, sale fees, etc are subject to tax, but services are not (currently).
 
In Ontario, we are charged sales tax on the purchase of horses as well as their board.
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The tax on board is new, just within this year.
 
I would think that unless you clearly purchased a horse for showing, that the Wisconsin law clearly indicates there should be no sales tax. Sales tax would ONLY apply for horses as they stated: for racing, pleasure riding and show. For miniatures, clearly unless it is a 'show' horse it would NOT quality for state sales tax.

For example, if you purchased a broodmare -- there should be NO tax. Sounds like someone is counting on you not knowing the 'rules'

I would certainly question the person for the inclusion of sales tax on your bill.

JMHO -- Diane at Castle Rock
I understood her to say the tax was on the boarding which is a service and many "services" are taxable in Wisconsin. For instance if you buy a washing machine and have the delivery people install it, there is a tax on that but not on the delivery. Go figure.
 
Yes, the tax is on board. I paid it, of course, but just had never heard such a thing.

There was no sales tax on the horse itself.

Andrea
 
I have several friends here in Wisconsin who board and some are charged tax and others are not. It probably depends on if they are doing it as a business or a hobby. jennifer
 
I have a friend with a boarding facility in NY that also sell horses and provides lessons. She has always charged sales tax on her boarding fees, but not on sale horses or lessons. She has always done this because she felt someday the state government would see the potential tax revenue involved with all of the facilities in the state that might not be paying proper taxes or under reporting what they earn. I also had a farrier who would charge sales tax if I paid by check, but would otherwise just pocket the money and not claim as income. I think it is just good business and they are being very honest when the sales tax is listed on the receipt.
 
We have a Bed and Breakfast and have to apply the "H.S.T." (harmonized sales tax is our Govt.'s glamorous name for the sales tax) to the rental fee and remit to Government.

We have to apply it to all sales, horses, tack etc.

On the other hand, when we pay sales tax we get it back on our Income Tax return when we claim our income and expenses.
 
Ive ben boarding and living in wisconsin my whole life ive never had to pay taxes on boarding or even on purchasing fees ( I JUST bought a colt in august)

Disney if you dont mind me asking what farm did you buy your new one from?
 
It is a hackney pony. He was living at his trainer's place in Sheboygan.
 

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