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 auditing costs, 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, defined to mean the 35th District Agricultural Association Merced County Fair and the Merced County Spring Fair,end deletebegin insert fair, as defined, which excludes any fair located in the County of Los Angeles,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 appropriated for allocation by the Secretary of Food and Agriculturebegin delete to the 35th District Agricultural Association Merced County Fair and the Merced County Spring Fairend delete 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) (1) 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
P3 1shall be allocated by the Secretary of Food and Agriculture only
2to the 35th District Agricultural Association Merced County Fair
3and the Merced County Spring Fair for the purposes specified in
4paragraph (1) and as specified in subdivision (b).
5
(2) Any revenues deposited into the Fair and Exposition Fund
6pursuant to Section 7101.4 of the Revenue and Taxation Code
7shall not be
allocated to any fair located in the County of Los
8Angeles.
9(b) A portion of the funds subject to allocation pursuant to
10subdivision (a) may be allocated to California fairs for general
11operational support. It is the intent of the Legislature that these
12moneys be used primarily for those fairs whose sources of revenue
13may be limited for purposes specified in this section.
14(c) This section shall be repealed on January 1, 2022.
Section 19620.2 is added to the Business and
16Professions Code, to read:
(a) Any unallocated balance from Section 19620.1
18is hereby appropriated without regard to fiscal years for allocation
19by the Secretary of Food and Agriculture for capital outlay to
20California fairs for fair projects involving public health and safety,
21for fair projects involving major and deferred maintenance, for
22fair projects necessary due to any emergency, for projects that are
23required by physical changes to the fair site, for projects that are
24required to protect the fair property or installation, such as fencing
25and flood protection, and for the acquisition or improvement of
26any property or facility that will serve to enhance the operation of
27the fair.
28(b) A portion of the
funds subject to allocation pursuant to
29subdivision (a) may be allocated to California fairs for general
30operational support. It is the intent of the Legislature that these
31moneys be used primarily for those fairs whose sources of revenue
32may be limited for purposes specified in this section.
33(c) This section shall become operative on January 1, 2022.
Section 6453.1 is added to the Revenue and Taxation
35Code, to read:
(a) For purposes of this part only, the return shall
37segregate the gross receipts of the seller and the sales price of the
38property when the place of sale in this state or use in this state for
39purposes of this part is on or within the real property of a
P4 1state-designated fair or any real property of a state-designated fair
2that is leased to another party.
3(b) For purposes of this section, “state-designated fair” meansbegin delete4
the 35th District Agricultural Association Merced County Fair and
5the Merced County Spring Fair.end delete
6in Sections 19418, 19418.1, 19418.2, and 19418.3 of the Business
7and Professions Code, excluding any fair located in the County
8of Los Angeles.end insert
9(c) Notwithstanding any provision of the Bradley-Burns Uniform
10Local Sales and Use Tax Law (Part 1.5 (commencing with Section
117200)) or the Transactions and Use Tax Law (Part 1.6
12(commencing with Section 7251)), this section shall not apply with
13respect to any tax levied by a county, city, or district pursuant to,
14or in accordance with, either of those laws.
15(d) This section shall be repealed on January 1, 2022.
Section 7101.4 is added to the Revenue and Taxation
17Code, to read:
(a) Notwithstanding Section 7101 or any other law,
19except as otherwise required to be transferred pursuant to the
20California Constitution or Sections 6051.2, 6051.8, 6051.15,
216201.2, 6201.8, 6201.15, and 7101.3 or subdivision (a) of Section
227102, 30 percent of all revenues, less refunds and costs of
23administration, derived under this part that were segregated
24pursuant to Section 6453.1, upon receipt shall be transferred to the
25Fair and Exposition Fund in the State Treasury. Any amounts
26deposited in the Fair and Exposition Fund pursuant to this section
27shall be continuously appropriated and allocated as provided in
28Section 19620.2 of the Business and Professions Code.
29(b) This section shall be repealed on January 1, 2022.
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