Bill > SB87

This bill extends an existing tax provision that allows all-volunteer fire departments to be considered consumers rather than retailers when selling tangible personal property, effectively exempting them from sales tax, with the sunset date extended from January 1, 2026 to January 1, 2031. To qualify for this designation, the fire department must be an all-volunteer organization where members are not paid a regular salary, have a purpose of protecting lives and property, and have official government recognition. The exemption does not apply if the department's gross receipts from selling tangible personal property exceed $100,000 in either of the two preceding calendar years. The bill also requires the California Department of Tax and Fee Administration to annually estimate and report the revenue loss associated with this tax expenditure, with specific goals including ensuring fundraiser proceeds remain with volunteer fire departments, helping them through critical times, and enabling them to afford necessary equipment during fire season. Additionally, the bill specifies that the state will not reimburse local agencies for any sales and use tax revenues lost due to this provision, and it takes effect immediately as a tax levy.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB87