Form 51A132 is the Kentucky Sales and Use Tax Equine Breeders Supplementary Schedule used by horse farms and equine breeders to report taxable receipts from equine breeding fees and calculate the related Kentucky sales and use tax amounts. 51A132 (6-26-23) The purpose of this supplementary schedule is to provide the Kentucky Department of Revenue with information about taxes collected from the sale of horse breeding services. The form collects business identification details, reporting period information, taxable equine breeding fee receipts, applicable Kentucky sales and use tax, compensation deductions, and the final net tax amount. 51A132 (6-26-23)
Horse farms and breeders use this schedule to report taxable equine breeding receipts separately from their regular sales and use tax return. The information provided helps ensure that the tax collected from horse breeding activities is properly reported and accounted for.
Form 51A132 is a supplementary schedule and must be filed separately from, and in addition to, the company’s regular Kentucky sales and use tax return. 51A132 (6-26-23)
How To File Form 51A132
Businesses should complete Form 51A132 for each reporting period in which they file a Kentucky sales and use tax return. The completed schedule must be submitted within 20 days after the period ending date shown on the form. 51A132 (6-26-23)
Before completing the form, prepare the following information:
- Horse farm or breeder business name.
- Kentucky sales tax account number.
- Business address.
- Reporting period dates.
- Breeder name.
- Taxable equine breeding fee receipts reported on the sales tax return.
- Authorized person’s signature and contact information.
The completed schedule may be mailed, faxed, or emailed using the submission methods provided in the form instructions. 51A132 (6-26-23)
Important filing requirements:
- File this schedule separately from the regular Kentucky sales and use tax return. 51A132 (6-26-23)
- Print and keep a copy of the completed form for your records before submitting it. 51A132 (6-26-23)
How To Complete Form 51A132
Complete each section carefully and make sure all calculations are accurate.
Business And Reporting Information
Horse Farm / Breeder
Enter the legal name of the horse farm or breeder responsible for reporting the equine breeding fees.
Sales Tax Account Number
Enter the Kentucky sales tax account number assigned to the business.
Address
Provide the complete mailing address of the horse farm or breeder.
Report For
Enter the reporting period covered by the supplementary schedule.
Period Beginning
Enter the first date of the reporting period.
Period Ending
Enter the final date of the reporting period.
Name of Breeder
Enter the name of the breeder associated with the reported equine breeding fee activity.
Equine Breeding Fee Tax Calculation
This section calculates the Kentucky sales and use tax related to taxable horse breeding receipts.
Line 1: Amount of Taxable Receipts Included on Line 22 of the Sales Tax Return From the Equine Breeding Fees
Enter the total taxable receipts from equine breeding fees that were included on Line 22 of the Kentucky sales tax return.
This amount should represent taxable income received from horse breeding services during the reporting period.
Line 2: Gross Kentucky Sales and Use Tax Applicable to Taxable Horse Breeding Receipts
Calculate the gross Kentucky sales and use tax by multiplying Line 1 by 0.06.
Calculation:
Line 1 × 6% = Line 2
Enter the resulting tax amount.
Line 3: Compensation
Calculate the allowed compensation deduction from the gross Kentucky sales and use tax amount.
The compensation calculation is:
- Deduct 1.75% of the first $1,000.
- Deduct 1.5% of the amount exceeding $1,000.
The total compensation amount cannot be more than $50.
Enter the calculated compensation amount after applying the maximum limit.
Line 4: Net Kentucky Sales and Use Tax Applicable to Equine Breeding Fees
Subtract Line 3 from Line 2 to determine the final net Kentucky sales and use tax amount related to equine breeding fees.
Calculation:
Line 2 − Line 3 = Line 4
Enter the resulting net tax amount.
Declaration And Signature Section
After completing all calculations, the responsible individual must review the form and certify that the information provided is accurate.
Signature
The authorized person must sign the form to confirm that the schedule has been reviewed and that the information is true, correct, and complete to the best of their knowledge. 51A132 (6-26-23)
Date
Enter the date the form is signed.
Title
Enter the signer’s official job title or position within the business.
Phone
Provide a telephone number where the responsible person can be contacted.
Final Review Before Filing
Before submitting Form 51A132, verify the following:
- Confirm the horse farm or breeder name is correct.
- Check that the sales tax account number is accurate.
- Verify the business address and reporting period dates.
- Confirm the breeder name is entered correctly.
- Make sure Line 1 matches the taxable equine breeding receipts reported on the sales tax return.
- Verify that Line 2 correctly calculates 6% of Line 1.
- Check that Line 3 follows the required compensation calculation and does not exceed the $50 limit.
- Confirm that Line 4 correctly subtracts Line 3 from Line 2.
- Ensure the declaration section includes the required signature, date, title, and phone number.
- Submit the supplementary schedule within the required filing period.
- File this schedule separately from the regular Kentucky sales and use tax return.
- Keep a printed copy of the completed form for your records before submission. 51A132 (6-26-23)