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 proceeds support department operations. The current exemption is set to expire on January 1, 2026.

The measure preserves existing eligibility requirements for fire departments seeking this tax treatment: members cannot receive regular salaries (though per-incident compensation is permitted), the organization must focus on protecting lives and property within a designated area, and it must maintain tax-exempt status under specified state or federal provisions. Departments exceeding $100,000 in gross receipts from tangible personal property sales for two consecutive calendar years become ineligible for the exemption. The California Department of Tax and Fee Administration must annually calculate and report to the Legislature the revenue impact of this tax expenditure beginning January 1, 2026.

While extending the sunset date, the bill explicitly prohibits state reimbursement to local agencies for any associated sales tax revenue reductions. The measure takes immediate effect upon enactment as a tax levy under the California Constitution.