CHAPTER 161. FIREWORKS TAX - Texas Statutes

TAX CODE

TITLE 2. STATE TAXATION

SUBTITLE E. SALES, EXCISE, AND USE TAXES

CHAPTER 161. FIREWORKS TAX

Sec. 161.001. DEFINITION. In this chapter, "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.

Added by Acts 2001, 77th Leg., ch. 1363, Sec. 2, eff. Oct. 1,

2001.

Sec. 161.002. FIREWORKS SALES TAX. (a) A tax is imposed on

each sale at retail of fireworks.

(b) The tax rate is two percent of the sale price of the

fireworks.

(c) The tax imposed under this chapter is in addition to the tax

imposed under Chapter 151. The tax imposed by this chapter does

not apply to a sale unless the tax imposed under Chapter 151

applies to the sale.

Added by Acts 2001, 77th Leg., ch. 1363, Sec. 2, eff. Oct. 1,

2001.

Sec. 161.003. EXCEPTIONS TO APPLICABILITY OF CHAPTER. This

chapter does not apply to:

(1) a toy pistol, toy cane, toy gun, or other device that uses a

paper or plastic cap;

(2) a model rocket or model rocket motor designed, sold, and

used for the purpose of propelling a recoverable aero model;

(3) a propelling or expelling charge consisting of a mixture of

sulfur, charcoal, and potassium nitrate;

(4) a novelty or trick noisemaker;

(5) a pyrotechnic signaling device or distress signal for

marine, aviation, or highway use in an emergency situation;

(6) a fusee or railway torpedo for use by a railroad;

(7) the sale of 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

(8) a pyrotechnic device for use by a military organization.

Added by Acts 2001, 77th Leg., ch. 1363, Sec. 2, eff. Oct. 1,

2001.

Sec. 161.004. APPLICATION OF OTHER PROVISIONS OF CODE. (a)

Except as provided by this chapter:

(1) the tax imposed by this chapter is administered, imposed,

collected, and enforced in the same manner as the tax under

Chapter 151 is administered, imposed, collected, and enforced;

and

(2) the provisions of Chapter 151 applicable to the sales tax

imposed under Subchapter C, Chapter 151, apply to the tax imposed

by this chapter.

(b) A change in the law relating to the taxation of the sale of

fireworks under Chapter 151 also applies to the tax imposed by

this chapter.

Added by Acts 2001, 77th Leg., ch. 1363, Sec. 2, eff. Oct. 1,

2001.

Sec. 161.005. ALLOCATION OF TAX. The comptroller shall allocate

the revenue from taxes imposed by this chapter, other than

penalties and interest, to the rural volunteer fire department

insurance fund established by Section 614.075, Government Code.

Added by Acts 2001, 77th Leg., ch. 1363, Sec. 2, eff. Oct. 1,

2001.