McConville

Plaintiff, J. C. McConville, appeals from a judgment of the Superior Court of Sacramento County entered in favor of the defendant State Board of Equalization (Board). Plaintiff challenged a ruling made by the Board denying a refund of a use tax.

Since 1968, plaintiff has engaged in the business of buying, breeding, and selling quarter horses and holds a State of California seller’s permit.

The dispute in this case centers around the use tax liability of plaintiff with respect to 20 horses held for sale during the period of July 1, 1969, to December 31, 1971, inclusive. One of these horses, “Three Seas,” was a “teasing stallion.” The remainder were mares, apparently bred while being held for sale and were either in foal or with foals at their sides. Upon sale of the mares, the foals were either sold or retained for breeding.

I

Plaintiff contends that breeding the mares to get them in foal while being held for sale was not a use subjecting them to liability under the Use Tax Law.

California Revenue and Taxation Code section 6094, subdivision (a), provides in pertinent part: “(a) If á purchaser who gives a resale certificate makes any use of the property other than…