The .3 would be 3 inches.
If a horse is 17.3 calculate - 17 x 4 that's 68 inches or 5' 6" plus 3" so 5' 9" or 71"
I'm not sure why the value is different on your horse tape versus your regular tape measure. I got my horse tape out and compared it to my regular tape and the value is the same. 1 hand is 4 inches.
If your tape measure reads 71" do it in reverse. 71 divided by 4 is 17.75... .75 X 4 = 3 so 17.3hh
You may be mistakenly calculating the .3 as 3/10 of an inch. Which its not. Does that make sense ? Its just the way hands are written. Its 17.3hh not a regular 17.3 where the value of 3 is 3/10 of an inch. Geesh now I'm confussing myself I better stop.