AUSTIN — Senate Bill 761, authored by Senator Brandon Creighton (R-Conroe) and sponsored by Representative Jim Murphy (R-Houston), passed the Texas House and is on its way to the governor's desk. This bill repeals the additional two percent tax on almost 1,500 businesses that sell fireworks in the state of Texas.

"I am excited that Representative Murphy were able to successfully provide a tax repeal for small businesses across the state," said Senator Creighton. "By eliminating the Fireworks Tax, we are both reducing the tax burden placed on the shoulders of fireworks vendors and making our tax collection more efficient."

"I am pleased to work with Senator Creighton to help eliminate this unnecessary tax," added Representative Murphy.

Currently, there is an additional 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, Senate Bill 761 redirects a portion of the regular sales tax on fireworks to account for the void.

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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