AB 2069: Sales and Use Tax Law: exemption: fairgrounds.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing state sales and use tax laws impose a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The Sales and Use Tax Law provides various exemptions from those taxes.

This bill, the Fairground Act for Investment and Revitalization, on and after January 1, 2027, and before January 1, 2032, would exempt the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, tangible personal property for use in the construction, development, or ongoing operation of a qualified project, defined to mean a new development project, or new phase of an existing project, that is located on the land of a fairground, undertaken pursuant to a written agreement and approved by a governing body of a fairground, as provided. The bill would require a governing body of a fairground to approve a project. By requiring additional duties be performed by the governing body of a fairground, this bill would impose a state-mandated local program.

Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill also would include additional information required for any bill authorizing a new tax expenditure.

The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws.

This bill would provide that the exemption created by the bill does not apply to local sales and use taxes or transactions and use taxes.

Sponsors

Sponsors by party (alphabetical): Democratic 3 · Republican 3

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. May 14, 2026In committee: Held under submission.
2. May 14, 2026Joint Rule 62(a), file notice suspended. (Page 5030.)
3. May 13, 2026In committee: Set, first hearing. Referred to APPR. suspense file.
4. April 28, 2026From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (April 27). Re-referred to Com. on APPR.
5. April 27, 2026In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
6. April 21, 2026Re-referred to Com. on REV. & TAX.
7. April 20, 2026From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
8. March 26, 2026Coauthors revised.
9. March 26, 2026From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 8. Noes 0.) (March 25). Re-referred to Com. on REV. & TAX.
10. March 19, 2026Re-referred to Coms. on AGRI. and REV. & TAX. pursuant to Assembly Rule 96.
11. March 17, 2026Re-referred to Com. on REV. & TAX.
12. March 16, 2026From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.