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The previous State Theatre in Red Bluff burned down in 1944. The San Francisco architectural firm of Cantin and Cantin designed this small venue as well others throughout Northern CA. Construction began on the State Theatre #2 in 04/1945 and concluded on 05/24/1946, its progress slowed by post-war building materials shortages. Because the previous theatre burned, this new building was produced in more fire-resistant reinforced concrete. A more elaborate facade with a grand marquee were not realized to Cantin and Cantin's specifications. The elements that were completed have a Streamline Moderne aesthetic--seen especially well in the marquee's contours, lobby canopy and side parapet--that remained popular for theatres until about 1950.

Since 1998, the building has been known as the State Theatre for the Arts, owned by a private foundation. The foundation has had funding problems. The facility accommodated 730 patrons for various types of events in 2013, down from its original capacity of 1,160 seats. The proscenium measured 24 feet wide; the stage extended 40 feet in width and 16 feet in depth. Basements were originally constructed for storage under the lobby and stage.

The auditorium was subdivided twice, once in 1980 (from one to two screens) and 1992. In 2008, the multiple walls sub-dividing the theatre were removed.