California Senate Bill SB820

California 2021-2022 Regular Session

• Introduced: 3/3/21
• Refer: 3/11/21
• Report Pass: 3/23/21
• Refer: 3/23/21
• Report Pass: 4/26/21
• Refer: 4/27/21
• Report Pass: 5/20/21
• Engrossed: 6/1/21
• Refer: 6/10/21
• Report Pass: 6/29/21
• Refer: 6/29/21
• Report Pass: 7/6/21
• Refer: 7/6/21
• Report Pass: 8/26/21
• Enrolled: 9/10/21
• Chaptered: 9/28/21
• Passed: 9/28/21

Caption

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

Impact

The impact of SB 820 is largely administrative, simplifying the reporting requirements for businesses operating at fairs and ensuring that the allocation of revenues to state-designated fairs is transparent and efficiently managed. By mandating that the CDTFA report on the total gross receipts segregated on tax returns by November 1 each year, the bill aims to streamline revenue calculations that contribute to the funding of fairs through the Fair and Exposition Fund in the State Treasury.

Summary

Senate Bill 820 amends section 19620.15 of the Business and Professions Code concerning horse racing and state-designated fairs. The bill specifically addresses the way gross receipts are reported and allocated for sales and use tax purposes when these transactions occur on properties associated with state-designated fairs. It stipulates that tax returns must differentiate the seller's gross receipts from the sales price on a form prescribed by the California Department of Tax and Fee Administration (CDTFA). This provides clarity in the process and ensures accurate reporting for financial accountability relating to sales at fairs.

Sentiment

The general sentiment around SB 820 appears to be favorable among stakeholders invested in the management of state-designated fairs. Many view the bill as a necessary update to existing laws, eliminating outdated provisions and enhancing the operational framework for tax compliance. However, there may be nuanced concerns from those who fear that changes in revenue reporting could lead to potential impacts on funding allocations, though these concerns were not prominently featured in discussions.

Contention

While there were no significant points of contention evident within the provided discussions around SB 820, the deletion of certain requirements regarding the review of gross receipts for errors may raise questions about the integrity of the financial reporting process. Stakeholders concerned about accountability might debate whether the removal of these checks could lead to inaccuracies in revenue reporting that affect state funding for fairs.