Sales and Use Tax Law: consumer designation: all-volunteer fire departments.

Senator Seyarto's legislation extends California's sales tax exemption for all-volunteer fire departments through January 1, 2031, maintaining their classification as consumers rather than retailers for tangible personal property sales when profits support department operations.

The bill preserves existing qualification criteria for departments seeking the tax exemption: members must be compensated only hourly or per incident rather than through regular salaries, the organization must focus on protecting lives and property through fire prevention and emergency response, and the department must maintain tax-exempt status with official local government recognition. Departments exceeding $100,000 in annual sales for two consecutive years remain ineligible. The California Department of Tax and Fee Administration must provide annual estimates to the Legislature regarding associated revenue impacts starting in 2026.

Local agencies will not receive state reimbursement for sales tax revenue reductions resulting from this exemption, as the bill explicitly overrides standard reimbursement requirements. The measure takes immediate effect as a tax levy under California's Constitution.