The Houston Livestock Show and Rodeo™ has established a schedule of Guaranteed Premiums to be paid to all eligible junior market show and school art exhibitors. In return for the Guaranteed Premium, all animals and art become the property of the Houston Livestock Show and Rodeo at the time the awards are presented.
These animals/works of art are then sold by the Houston Livestock Show and Rodeo in their respective junior auction. This way, exhibitors know in advance the amount of money they will receive for animals/works of art sold at auction through this program.
Also, in accordance with tax legislation, the Houston Livestock Show and Rodeo (a nonprofit charitable organization) provides each auction buyer with a record of the animal he or she purchased from the Show. This disclosure informs buyers of the fair market value of an animal, and allows buyers to determine what amount of the excess payment above fair market value is a charitable contribution.