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, and that ¾ of 1% of the total gross receipts be included in the next annual Governor's 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 in the State Treasury, as prescribed. Existing law requires, that for the 2019–20 fiscal year and all subsequent fiscal years, the total gross receipts be subject to review by the CDTFA for errors. Existing law requires the CDTFA to note any identified errors and the approximate impact of those errors on the total gross receipts in its report to the Department of Finance to allow an adjusted total gross receipt amount to be determined for the purpose of calculating the amount to be included in the Governor's Budget for use by the Department of Food and Agriculture for allocation to fairs. This bill would require, 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 filed for the prior fiscal year. The bill would delete the requirement that, for the 2019–20 fiscal year and all subsequent fiscal years, the review by the CDTFA for errors to allow an adjusted total gross receipt amount to be determined, be for the purpose of calculating the amount to be included in the Governor's Budget for use by the Department of Food and Agriculture for allocation to fairs. The bill would also make clarifying changes and delete obsolete provisions.