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Taxes still part of Independence Day 248 years later

July 4, 2024
Photo by Rene Bernal on Unsplash

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Happy Independence Day, America!

Or as we call it at our house, the July 3 Until Whenever Our Neighbors’ Fireworks Stash Is Fully Exploded holiday.

Yep, residents of our suburban enclave started celebrating last night. It’s an annual dress rehearsal for the full array of pyrotechnics today. And it continues for days.

I’m sure the hubby and I are not alone. In 49 states and the District of Columbia, private display of certain types of fireworks are legal.

Which jurisdiction is the outlier? Massachusetts is the only U.S. state where it is illegal to sell, use, or otherwise possess fireworks of any kind as a private citizen.

Why? Because they are dangerous,” say Bay State officials.

I suspect the ban doesn’t stop some Massachusetts residents from setting off few firecrackers. It’s the same here in our part of Central Texas, where my fireworks fanatic neighbors scoff at the city and county restrictions on the seasonal explosives.

Tax tradeoff: The minimal consolation for all the too-close fireworks’ noise (and potential fire in this dry season) is that their purchases add to the Texas treasury. Texas sales tax is due on all fireworks sales in Texas.

That’s 6.25 percent at the state level, along with as much as 2 percent tacked on by Texas’ myriad local taxing jurisdictions, such as cities, counties, special purpose districts, and transit authorities. That means at some fireworks stands, the price is bumped up by a total combined sales tax rate of 8.25 percent.

The revenue potential for fireworks is the same in other states. In addition to sales taxes, some also impose excise taxes and licensing fees, as well as fees on fireworks sellers.

I’ll be reminding myself of the overall financial benefit of fireworks as the nearby explosions continue.

Follow fireworks safety guidelines: Wherever you’re celebrating this July 4th, enjoy. And be safe.

The U.S. Consumer Product Safety Commission (CPSC) reports that 9,700 people were treated last year by emergency room medical staff for fireworks related injuries. Eight people died from their injuries.

Forty-two percent of the injuries were burns. The most-injured body parts were hands and fingers (35 percent); head, face, and ears (22 percent); and eyes (19 percent).

The CPSC and National Safety Council (NSC) offer these fireworks safety tips:

  • Never allow young children to play with, light, or otherwise handle fireworks. Even sparklers can be dangerous. Older children should use them only under close adult supervision.
  • Never hold lighted fireworks in your hands. Never light them indoors. Only use them away from people, houses, and flammable material.
  • Never point or throw fireworks at another person. (My cousins ignored this when we were children.)
  • Only light one device at a time. Once ignited, move back quickly, and maintain a safe distance.
  • Anyone using fireworks or standing nearby should wear protective eyewear.
  • Never ignite devices in a container. (Yep, it’s an old wives tale that using a Coke bottle will protect you from the so-named bottle rocket injuries. Just ask one of my aforementioned cousins.)
  • Do not try to re-light or handle malfunctioning fireworks.
  • Soak both spent and unused fireworks in water for a few hours before discarding
  • Keep a bucket of water nearby to fully extinguish fireworks that don’t go off or in case of fire.
  • Never use fireworks while impaired by drugs or alcohol. (Again, too many in family did not follow this advice. I’m amazed they’re still around for family reunions!)

But this is my favorite safety tip: Grab a blanket or lawn chair, kick back at a safe distance for a full, panoramic view, and let the experts put on the fireworks show.

You also might find these items of interest:

 

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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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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