SB 1261: Horse racing: state-designated fairs: allocation of revenues: gross receipts for sales and use tax.

Existing law requires a tax return filed with the California Department of Tax and Fee Administration (CDTFA) that reports gross receipts for sales and use tax purposes to segregate the gross receipts of the seller and the sales price of the property on a line or a separate form when the place of sale in this state or for use in this state is on or within the real property of a state-designated fair, as defined, or any real property of a state-designated fair that is leased to another party. Existing law requires, on or before November 1 of each year, the CDTFA to report to the Department of Finance the amount of the total gross receipts segregated on these tax returns for the prior fiscal year, and that ³/₄ of 1% of the total gross receipts be included in the next annual Governors Budget for use by the Department of Food and Agriculture for allocation to fairs and that those funds be transferred by the Controller to the Fair and Exposition Fund, which is continuously appropriated, as prescribed.

This bill would instead increase the amount of the total gross receipts required to be included in the next annual Governors Budget for use by the Department of Food and Agriculture and transferred to the Fair and Exposition Fund, as specified, from ³/₄ of 1% to 5%. 3%. The bill would make other nonsubstantive changes regarding appropriations to the department for fairs.