84R7781 GRM-F
	By: Murphy, King of Taylor	H.B. No. 2113

	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.