AB 2678, as amended, Gray. State-designated fairs: funding.
Existing law establishes the Fair and Exposition Fund to, among other things, allocate moneys for the support of the network of California fairs. The balance of moneys in that fund, after appropriation by the Legislature for specified oversight and auditingbegin delete costsend deletebegin insert costs,end insert are continuously appropriated for capital outlay for specified fair projects. Existing sales and use laws impose taxes on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state measured by sales price, and
requires that revenues, less refunds, derived from a specified rate of that tax be transferred to specified funds and then the balance to the General Fund.
This bill would require a tax return filed for the purposes of the Sales and Use Tax Law to segregate the gross receipts of the seller and the sales price of the property on a form prescribed by the State Board of Equalization when the place of sale or use in this state is on or within the real property of a state-designatedbegin delete fair, as defined,end deletebegin insert fair, defined to mean the 35th District Agricultural Association Merced County Fair and the Merced County Spring Fair,end insert or any real property of a state-designated fair that is leased to another party.
The bill would require, except as specified, that 30% of all revenues, less refunds and costs of administration, derived from those segregated sales and use tax amounts that would have been deposited into the General Fund instead be deposited into the Fair and Exposition Fund and continuously appropriatedbegin insert for allocation by the Secretary of Food and Agriculture to end insertbegin insertthe 35th District Agricultural Association Merced County Fair and the Merced County Spring Fairend insert for specified fair projects.
The bill would repeal these provisions on January 1, 2022.
Vote: 2⁄3. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 19620.2 of the Business and Professions
2Code is amended to read:
(a) begin insert(1)end insertbegin insert end insert Any unallocated balance from Section
419620.1 and any revenue deposited in the Fair and Exposition
5Fund pursuant to Section 7101.4 of the Revenue and Taxation
6Code is hereby appropriated without regard to fiscal years for
7allocation by the Secretary of Food and Agriculture for capital
8outlay to California fairs for fair projects involving public health
9and safety, for fair projects involving major and deferred
10maintenance, for fair projects necessary due to any emergency,
11for projects that are required by physical changes to the fair
site,
12for projects that are required to protect the fair property or
13installation, such as fencing and flood protection, and for the
14acquisition or improvement of any property or facility that will
15serve to enhance the operation of the fair.
16
(2) Any revenues deposited into the Fair and Exposition Fund
17pursuant to Section 7101.4 of the Revenue and Taxation Code
18shall be allocated by the Secretary of Food and Agriculture only
P3 1to the 35th District Agricultural Association Merced County Fair
2and the Merced County Spring Fair for the purposes specified in
3paragraph (1) and as specified in subdivision (b).
4(b) A portion of the funds subject to allocation pursuant to
5subdivision (a) may be allocated to California fairs for
general
6operational support. It is the intent of the Legislature that these
7moneys be used primarily for those fairs whose sources of revenue
8may be limited for purposes specified in this section.
9(c) This section shall be repealed on January 1, 2022.
Section 19620.2 is added to the Business and
11Professions Code, to read:
(a) Any unallocated balance from Section 19620.1
13is hereby appropriated without regard to fiscal years for allocation
14by the Secretary of Food and Agriculture for capital outlay to
15California fairs for fair projects involving public health and safety,
16for fair projects involving major and deferred maintenance, for
17fair projects necessary due to any emergency, for projects that are
18required by physical changes to the fair site, for projects that are
19required to protect the fair property or installation, such as fencing
20and flood protection, and for the acquisition or improvement of
21any property or facility that will serve to enhance the operation of
22the fair.
23(b) A portion of the
funds subject to allocation pursuant to
24subdivision (a) may be allocated to California fairs for general
25operational support. It is the intent of the Legislature that these
26moneys be used primarily for those fairs whose sources of revenue
27may be limited for purposes specified in this section.
28(c) This section shall become operative on January 1, 2022.
Section 6453.1 is added to the Revenue and Taxation
30Code, to read:
(a) For purposes of this part only, the return shall
32segregate the gross receipts of the seller and the sales price of the
33property when the place of sale in this state or use in this state for
34purposes of this part is on or within the real property of a
35state-designated fair or any real property of a state-designated fair
36that is leased to another party.
37(b) For purposes of this section, “state-designated fair” means
38
begin delete a state designated fair as defined in Sections 19418, 19418.1, begin insert
the
3919418.2, and 19418.3 of the Business and Professions Code.end delete
P4 135th District Agricultural Association Merced County Fair and
2the Merced County Spring Fair.end insert
3(c) Notwithstanding any provision of the Bradley-Burns Uniform
4Local Sales and Use Tax Law (Part 1.5 (commencing with Section
57200)) or the Transactions and Use Tax Law (Part 1.6
6(commencing with Section 7251)), this section shall not apply with
7respect to any tax levied by a county, city, or district pursuant to,
8or in accordance with, either of those laws.
9(d) This section shall be repealed on January 1, 2022.
Section 7101.4 is added to the Revenue and Taxation
11Code, to read:
(a) Notwithstanding Section 7101 or any other law,
13except as otherwise required to be transferred pursuant to the
14California Constitution or Sections 6051.2, 6051.8, 6051.15,
156201.2, 6201.8, 6201.15, and 7101.3 or subdivision (a) of Section
167102, 30 percent of all revenues, less refunds and costs of
17administration, derived under this part that were segregated
18pursuant to Section 6453.1, upon receipt shall be transferred to the
19Fair and Exposition Fund in the State
Treasury. Any amounts
20deposited in the Fair and Exposition Fund pursuant to this section
21shall be continuously appropriated and allocated as provided in
22Section 19620.2 of the Business and Professions Code.
23(b) This section shall be repealed on January 1, 2022.
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