CA AB1499

Returns filed with the California Department of Tax and Fee Administration must segregate gross receipts from sales occurring on or within state-designated fair property, effective July 1, 2018.

The CDTFA must report total segregated gross receipts to the Department of Finance by November 1 each year, with an initial estimate due by January 31, 2019 based on third quarter 2018 data.

An amount equal to three-quarters of 1% of reported gross receipts shall be allocated annually to the Fair and Exposition Fund for distribution to state-designated fairs for capital outlay and operational support projects.

Funds can only be allocated to state-designated fairs that provide nonmanagement employees with specified working conditions including meal periods, overtime compensation at 1.5x and 2x regular rates for hours exceeding 8 or 12 hours daily, and seventh-day premium pay.

The CDTFA's administrative costs for implementing these provisions shall be paid from the appropriated funds before any allocation to fairs.