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A tax bang for fireworks bucks

July 4, 2007

When we Texans buy our Black Cats or sparklers this Independence Day, part of our payment goes to cover a special fireworks tax.

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Since Oct. 1, 2001, Lone Star State fireworks retailers have been collecting a 2 percent tax, in addition to existing state and local sales taxes, on "small fireworks in the U.S. Department of Transportation’s 1.4G category that may legally be sold to the general public each year in Texas from June 24 to July 4 and from December 20 to January 1."

All that official categorization gobbledygook means the tax applies to such products as firecrackers, rockets, Roman candles and fountains.

A bit of good news here is that we save on some taxes since the roadside stands routinely offer specials like "Buy 1, Get 10 Free!"

But Fourth of July celebrants really shouldn’t complain about the fireworks tax. It’s not that big and the revenue goes to a very good cause — a program to assist rural fire departments.

This day in history: On July 4, 1776, the Continental Congress approved the U.S. Declaration of Independence from Great Britain.

The formal document, signed by 56 delegates, was crafted by the Committee of Five: Benjamin Franklin of Pennsylvania, John Adams of Massachusetts, Robert Livingston of New York, Robert Morris of Pennsylvania, and Thomas Jefferson of Virginia.

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The birth of the United States came on the heels of a measure, introduced two days earlier by Delegate Richard Henry Lee of Virginia, that declared "That these United Colonies are, and, of right, ought to be, Free and Independent States; that they are absolved from all allegiance to the British crown, and that all political connexion between them, and the state of Great Britain, is and ought to be, totally dissolved."

Happy 231st Birthday, America!

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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