From the LRC: http://www.lrc.ky.gov/record/06RS/HB113.htm
BR 464 - Representative Steven Rudy (12/01/05)
AN ACT relating to sales and use tax.
Amend KRS 139.470 to delete gross receipts from sales of water used in equine businesses from exempt transactions; amend KRS 139.531 to exempt from sales and use tax the sale of feed, seed, commercial fertilizer, machinery, machinery repair parts, horse embyros and semen, fuel, and on-farm facilities to persons engaged in raising equine as a business; provide that the Act takes effect August 1, 2006.
The only thing I see there is that you receive the tax break if you're "engaged in raising equine as a business".
I believe you may be referring to this bill: http://www.lrc.ky.gov/record/06RS/HB109.htm
BR 473 - Representative Mike Denham (11/28/05)
AN ACT relating to sales tax.
Amend KRS 139.480 to exempt from sales and use tax straw, wood shavings, and sawdust used in agricultural or equine pursuits; ACT takes effect August 1, 2006.
Or perhaps: http://www.lrc.ky.gov/record/06RS/HB29.htm
BR 173 - Representative Sheldon E Baugh (07/26/05)
AN ACT relating to sales and use tax.
Amend KRS 139.480 to exempt from sales and use tax LP gas and natural gas purchased for use in a commercial greenhouse or nursery.
PS. Sorry for the anonymous post before. I forgot to log in.