LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6691 NOTE PREPARED: Dec 27, 2023
BILL NUMBER: HB 1107 BILL AMENDED:
SUBJECT: Local Regulation of Consumer Fireworks.
FIRST AUTHOR: Rep. Schaibley BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: This bill prohibits a county or municipality (unit) from limiting the use of
consumer fireworks between certain hours on July 4, December 31, and January 1. (Current law prohibits
a unit from limiting the use of consumer fireworks between certain hours on June 29, June 30, July 1, July
2, July 3, July 5, July 6, July 7, July 8, and July 9.)
Effective Date: Upon passage.
Explanation of State Expenditures:
Explanation of State Revenues: Sales Tax – This bill could impact sales tax revenue if limiting the use of
fireworks results in reduced sales of fireworks. The revenue decrease would likely be minor. Sales taxes
collected from fireworks sales have averaged approximately $5.4 M annually from FY 2019 through FY
2023. Sales tax revenue is deposited in the General Fund (99.838%), Commuter Rail Service Fund (0.131%),
and Industrial Rail Service Fund (0.031%).
Public Safety Fees – In addition to sales tax, individuals who acquire fireworks in a retail transaction are
liable for a 5% public safety fee which is deposited in the General Fund. The bill could affect public safety
fee revenue if limiting the use of fireworks results in reduced sales of fireworks. Public safety fees collected
from fireworks sales have averaged approximately $3.9 M annually from FY 2019 through FY 2023. The
first $2 M in public safety fees collected on an annual basis are transferred to the Regional Public Safety
Training Fund. The remainder of the funds collected in that year is split evenly between the State Disaster
Relief Fund and the Regional Public Safety Training Fund, both of which are nonreverting, dedicated funds
administered by the Department of Homeland Security.
HB 1107 1 Additional Information – This bill will reduce the number of days on which counties and municipalities are
prohibited from limiting the use of fireworks. Current law protects use of consumer fireworks on 10 days
surrounding Independence Day. This bill reduces the window of protected use to July 3 and July 5. There
is no change to the window of protected use for July 4, December 31, and January 1.
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Department of Homeland Security.
Local Agencies Affected:
Information Sources: Legislative Services Agency, Indiana Handbook of Taxes, Revenues, and
Appropriations, FY 2023.
Fiscal Analyst: Alexander Raggio, 317-234-9485.
HB 1107 2