AUSTIN — Today, Senator Brandon Creighton passed his first bill as a state senator, Senate Bill 761. This bill repeals the additional two percent tax on almost 1,500 businesses that sell fireworks in the state of Texas.

Currently, there is an extra two percent tax on the sale of fireworks dedicated for the purpose of funding the Rural Volunteer Fire Department Insurance Fund. In order to protect the RVFDIF while cutting taxes for small business owners, Senator Creighton's legislation redirects a portion of the regular sales tax on fireworks to account for the void. Senator Creighton is working with Comptroller Glenn Hegar on this effort.

"I am excited to start my tenure as state senator with a tax repeal for small businesses," said Senator Creighton. "The Fireworks Tax is a tax on top of state and local sales tax. By eliminating it, we are simultaneously reducing the tax burden placed on the shoulders of firework vendors and making our tax collection more efficient. I will work to continue to find ways to eliminate taxes on small businesses in our state."

The two percent Fireworks Tax was enacted in 2001 as an addition to state and local sales and use taxes imposed on fireworks. In 2014, the tax generated $1,698,000 paid by 1,343 active taxpayers.

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