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Seal of the Senate of the State of Texas Welcome to the Official Website for the Texas Senate
Seal of the Senate of the State of Texas
Welcome to the official website for the
Texas Senate
 
Senator Brandon Creighton: District 4
 
News Release
FOR IMMEDIATE RELEASE
May 22, 2015
Contact: Eliza Vielma
eliza.vielma@senate.state.tx.us
Fireworks Double Taxation Repealed
Senate Bill 761 will save Taxpayers over $1.5 million

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.

SENATOR BRANDON CREIGHTON represents District 4, which encompasses Chambers, Jefferson and parts of Montgomery, Harris, and Galveston Counties. He currently serves on the Senate Committee on Agriculture, Water and Rural Affairs, the Senate Committee on Criminal Justice, the Senate Committee on State Affairs, and as the Vice-Chairman of the Senate Committee on Business and Commerce.

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