Bought a season pass and premium season pass last month. How do we use them when state fair is happening? Does it allow us into fair alao?

Yes if you have a pass you can go there without paying because you have a pass

Yes

Yes it gets you in to the fair. You need to have the barcode they gave you when you bought the passes and your ID to get into the gate then they process your card with a picture when you go to Raging Waters itself.