According to a story on Kentucky.com, budget shortfalls in Kentucky could lead to a re-examination of tax breaks on horses selling at Kentucky auctions

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Since 1976 sales of horses purchased for breeding and sales of horses less than two years old to non-residents and sent out of state immediately have been exempt of being taxed.

"Obviously, Kentucky is competing with other states," said Richard Dobson, sales tax expert at the state Department of Revenue. "We're not targeting out-of-state buyers in a vacuum. Kentucky-bred horses have a reputation, and this is just another piece to protect that."

Since 2003, according to state estimates, almost $3.7 billion in exempt sales of horses have cost the state more than $220 million in tax revenue.

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