By: Creighton S.B. No. 761
A BILL TO BE ENTITLED
AN ACT
relating to the taxation of fireworks.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.801, Tax Code, is amended by
amending Subsections (a) and (d) and adding Subsection (c-2) to
read as follows:
(a) Except for the amounts allocated under Subsections (b),
[and] (c), and (c-2), all proceeds from the collection of the taxes
imposed by this chapter shall be deposited to the credit of the
general revenue fund.
(c-2) An amount equal to the revenue derived from the
collection of taxes at the rate of two percent on each sale at
retail of fireworks shall be deposited to the credit of the rural
volunteer fire department insurance fund established under Section
614.075, Government Code.
(d) The comptroller shall determine the amount to be
deposited to the highway fund under Subsection (b) according to
available statistical data indicating the estimated average or
actual consumption or sales of lubricants used to propel motor
vehicles over the public roadways. The comptroller shall determine
the amounts to be deposited to the funds or accounts under
Subsection (c) according to available statistical data indicating
the estimated or actual total receipts in this state from taxable
sales of sporting goods. The comptroller shall determine the
amount to be deposited to the fund under Subsection (c-2) according
to available statistical data indicating the estimated or actual
total receipts in this state from taxes imposed on sales at retail
of fireworks. If satisfactory data are not available, the
comptroller may require taxpayers who make taxable sales or uses of
those lubricants, [or] of sporting goods, or of fireworks to report
to the comptroller as necessary to make the allocation required by
Subsection (b), [or] (c), or (c-2).
SECTION 2. Section 151.801(e), Tax Code, is amended by
adding Subdivision (3) to read as follows:
(3) "Fireworks" means any composition or device that
is designed to produce a visible or audible effect by combustion,
explosion, deflagration, or detonation that is classified as
Division 1.4G explosives by the United States Department of
Transportation in 49 C.F.R. Part 173 as of September 1, 1999. The
term does not include:
(A) a toy pistol, toy cane, toy gun, or other
device that uses a paper or plastic cap;
(B) a model rocket or model rocket motor
designed, sold, and used for the purpose of propelling a
recoverable aero model;
(C) a propelling or expelling charge consisting
of a mixture of sulfur, charcoal, and potassium nitrate;
(D) a novelty or trick noisemaker;
(E) a pyrotechnic signaling device or distress
signal for marine, aviation, or highway use in an emergency
situation;
(F) a fusee or railway torpedo for use by a
railroad;
(G) a blank cartridge for use in a radio,
television, film, or theater production, for signal or ceremonial
purposes in athletic events, or for industrial purposes; or
(H) a pyrotechnic device for use by a military
organization.
SECTION 3. Section 614.072(h), Government Code, is amended
to read as follows:
(h) Administration costs associated with the program during
a state fiscal year may not exceed seven percent of the total
deposited to the credit of the fund as required by Section
151.801(c-2) [revenue collected from the tax imposed under Chapter
161], Tax Code, during the previous fiscal year.
SECTION 4. Section 614.075(a), Government Code, is amended
to read as follows:
(a) The rural volunteer fire department insurance fund is an
account in the general revenue fund and is composed of money
deposited as required by Section 151.801(c-2) [collected under
Chapter 161], Tax Code, and contributions to the fund from any other
source.
SECTION 5. Chapter 161, Tax Code, is repealed.
SECTION 6. The changes in law made by this Act do not affect
tax liability accruing before the effective date of this Act. That
liability continues in effect as if this Act had not been enacted,
and the former law is continued in effect for the collection of
taxes due and for civil and criminal enforcement of the liability
for those taxes.
SECTION 7. This Act takes effect September 1, 2015.