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AB-1499 Horse racing: state-designated fairs: allocation of revenues: gross receipts for sales and use tax. (2017-2018)

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Date Published: 02/17/2017 09:00 PM
AB1499:v99#DOCUMENT

Revised  April 27, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1499


Introduced by Assembly Member Gray
(Coauthors: Assembly Members Acosta, Aguiar-Curry, Bigelow, Bocanegra, Bonta, Brough, Cooper, Daly, Gallagher, Eduardo Garcia, Gipson, Gloria, Jones-Sawyer, Kiley, Levine, Low, Rubio, Salas, and Waldron)

February 17, 2017


An act to add Section 19620.15 to the Business and Professions Code, relating to horse racing, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 1499, as introduced, Gray. Horse racing: state-designated fairs: allocation of revenues: gross receipts for sales and use tax.
(1) The Horse Racing Law provides that any unallocated balance from the total revenue received by the Department of Food and Agriculture pursuant to that law, except as specified, is hereby appropriated without regard to fiscal years for allocation by the Secretary of Food and Agriculture for capital outlay to California fairs, including state-designated fairs, for among other things, fair projects involving public health and safety, and projects that are required to protect fair property. That law also provides that a portion of these funds may be allocated to California fairs for general operational support.
This bill would require a return filed with the State Board of Equalization to report 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 form prescribed by the state board 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. The bill would require the state board to report the amount of the total gross receipts segregated on the returns filed pursuant to these provisions to the Department of Finance on or before April 30 of each year.
The bill would require that an amount equal to 3/4 of 1% of the total amount of gross receipts reported to the Department of Finance be included in the next annual Governor’s Budget for the Department of Food and Agriculture for allocation to fairs pursuant to the provisions described above. The bill would require, upon the enactment of the annual Budget Act, that this amount be transferred by the Controller to the Fair and Exposition Fund, which is continuously appropriated, and would allocate these moneys to state-designated fairs, as specified. The bill would provide that the state board be paid the actual cost for administering those provisions, as specified.
(2) By creating a new source of revenue to be deposited into a continuously appropriated fund, the bill would make an appropriation.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 19620.15 is added to the Business and Professions Code, to read:

19620.15.
 (a) Notwithstanding any other law, a return filed with the State Board of Equalization to report gross receipts for sales and use tax purposes shall 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 in this state or for use in this state is on or within the real property of a state-designated fair or any real property of a state-designated fair that is leased to another party.
(b) For purposes of this section, “state-designated fair” means a state-designated fair as defined in Sections 19418, 19418.1, 19418.2, and 19418.3.
(c) The State Board of Equalization shall designate a separate line on the existing form, or develop a form for purposes of this section.
(d) The State Board of Equalization shall report the amount of the total gross receipts segregated on the returns filed pursuant to subdivision (a) to the Department of Finance on or before April 30 of each year.
(e) An amount equal to three-quarters of 1 percent of the total amount of gross receipts reported to the Department of Finance specified in subdivision (d) shall be included in the next annual Governor’s Budget for the Department of Food and Agriculture for allocation to fairs pursuant to Section 19620.2. Upon the enactment of the annual Budget Act, the amount appropriated by the Legislature to the Department of Food and Agriculture pursuant to this section shall be transferred by the Controller to the Fair and Exposition Fund in the State Treasury, and shall be continuously appropriated and allocated pursuant to Section 19620.2.
(f) The State Board of Equalization shall be paid the actual cost for administering the provisions of this section from the funds appropriated pursuant to subdivision (e) before any allocation is made to fairs in accordance with Section 19620.2.

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REVISIONS:
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