Plain English Breakdown
The bill text states it takes effect immediately as a tax levy, but the exemption period does not begin until January 1, 2027.
Tax Exemption for Fairground Projects
Starting January 1, 2027, and ending before January 1, 2032, this bill removes state sales tax on items used to build or run new projects at fairgrounds.
What This Bill Does
- Exempts gross receipts from the sale of tangible personal property for qualified fairground projects.
- Removes state sales and use taxes on storing or using items purchased for these construction, development, or operation tasks.
- Requires a written agreement approved by a fairground governing body to qualify for the exemption.
- Limits initial project approval periods to no more than 20 years with an option to extend by another 20 years.
- Includes specific goals and data collection requirements as required for new tax expenditures.
Who It Names or Affects
- Retailers selling items used in qualified fairground projects.
- Fairgrounds undertaking new development or construction phases on their land.
- Governing bodies of fairgrounds that must approve and manage these project agreements.
- Local agencies if the Commission on State Mandates determines costs are mandated by this bill.
Terms To Know
- Tangible personal property
- Physical items or goods that can be touched, such as building materials or equipment.
- Qualified project
- A new development project or a new phase of an existing project located on fairground land and approved by the governing body via written agreement.
- Tax expenditure
- Revenue lost to the government because of a tax exemption, deduction, or credit provided by law.
Limits and Unknowns
- The exemption does not apply to local sales and use taxes collected by cities or counties.
- The exemption does not cover state tax rates dedicated specifically for local government funding, such as the Local Revenue Fund 2011.
- Reimbursement costs depend on a future determination by the Commission on State Mandates.