New registration requirements for Consumer Fireworks Tax accounts
New fireworks facility licensees must register for a Consumer Fireworks Tax account through the Pennsylvania Department of Revenue's myPATH's "Pennsylvania Online Business Tax Registration" service to register a business entity with the department.
Newly licensed fireworks facilities and direct wine shippers should visit mypath.pa.gov, scroll down on the homepage, and select "Register New Entity" to begin the application.
On October 30, 2017, Governor Tom Wolf signed into law Act 43 of 2017, establishing a consumer fireworks tax on each separate sale at retail of consumer fireworks within the Commonwealth of Pennsylvania.
Effective October 1, 2022, in accordance with Act 74 of 2022, the consumer fireworks tax rate of 12% and the sales tax rate of 6% apply to the purchase price of consumer fireworks, independent of each other.
Example:
| Consumer Fireworks Tax Example | PA Sales Tax Example | Totals |
|---|---|---|
| Consumer Grade Fireworks Purchase Price $10.00 | Consumer Grade Fireworks Purchase Price $10.00 | Total Purchase Price = $10.00 |
| X 12% Consumer Fireworks Tax = $1.20 | X 6% PA Sales Tax = $ .60 | Total Tax Paid = $1.80 |
Retailer Information
What you need to know: Effective October 30, 2017, retail sales of consumer fireworks, as defined in Act 43, are subject to the 12% consumer fireworks tax. If you have sold a product at retail considered a consumer firework under the law, you are required to charge, collect and remit the 12% consumer fireworks tax even if you are not yet licensed under the new law.
License: Sellers of consumer fireworks are required to apply for a Consumer Fireworks Facility License with the Pennsylvania Department of Agriculture, Bureau of Ride and Measurement Standards. You can find more information by visiting the Department of Agriculture’s website at www.agriculture.pa.gov.
Licensees must submit a quarterly consumer fireworks tax return with the Pennsylvania Department of Revenue, even for periods where no taxable retail fireworks sales occurred.
Filing and Paying Taxes
Licensees must register their consumer fireworks tax account with myPATH, the department’s online portal for electronically filing returns, making payments, and renewing licenses, available at mypath.pa.gov. Once licensed, consumer fireworks tax returns must be filed electronically on myPATH.
Paper tax returns are not available or permissible for this tax type.
If your Point-of-Sale system cannot handle charging two different taxes on one transaction, you can use one composite tax rate, per sales transaction.
However, when your tax returns are filed with the Department of Revenue, the collection of the sales tax and fireworks tax must be reported separately on the respective return. Licensees are still required to file a Sales and Use Tax return according to their assigned sales tax account filing frequency, which may differ from the quarterly Consumer Fireworks Tax return.
Frequently Asked Questions
Sellers of consumer fireworks are required to apply for a Consumer Fireworks Facility License with the Pennsylvania Department of Agriculture, Bureau of Ride and Measurement Standards. You can find more information by visiting the Department of Agriculture’s website at www.agriculture.pa.gov.
Licensees must submit a quarterly consumer fireworks tax return with the Pennsylvania Department of Revenue, even for periods where no taxable retail fireworks sales occurred.
Licensees are still required to file a Sales and Use Tax return according to their assigned sales tax account filing frequency, which may differ from the quarterly Consumer Fireworks Tax return.
Licensees must register their consumer fireworks tax account with myPATH, the department’s online portal for electronically filing returns, making payments, and renewing licenses, available at mypath.pa.gov. Once licensed, consumer fireworks tax returns must be filed electronically on myPATH.
Paper tax returns are not available or permissible for this tax type.
Consumer grade fireworks (Class C) include firecrackers, Roman candles and bottle rockets.
Display fireworks (Class B) are the type seen at community celebrations on the Fourth of July and New Year's Eve. They are only legal for professional pyro- technicians use. In addition, M-80s, M-100s, quarter- sticks, half-sticks and cherry bombs, which are illegal in most of the U.S., will remain illegal in Pennsylvania.
The American Pyrotechnics Association maintains a document, APA Standard 87-1, that contains definitions, standards and other helpful information related to fireworks. For a list of consumer fireworks that are subject to the consumer fireworks tax, please refer to Chapter 3.
Yes, you can use one composite tax rate, per sales transaction. However, when your tax returns are filed with the Department of Revenue, the collection of the sales tax and fireworks tax must be reported separately.
- Counties with 6% sales and use tax rate would use a composite rate of 18.00%.
- Counties with 7% sales and use tax rate would use a composite rate of 19.00%.
- Counties with 8% sales and use tax rate would use a composite rate of 20.00%.
Chart below shows the calculation of the PA sales tax, the county sales tax and consumer fireworks tax; and the various tax remittance percentages.
| State | Philadelphia | Allegheny | ||||
|---|---|---|---|---|---|---|
| Consumer Grade Firework Cost | $10.00 | | $10.00 | | $10.00 | |
| 12% Consumer Fireworks Tax | $1.20 | 12% | $1.20 | 12% | $1.20 | 12% |
| 6% PA Sales Tax | $0.60 | 6% | $0.60 | 6% | $0.60 | 6% |
| County Sales Tax | | $0.20 | 2% | $0.10 | 1% | |
| Total Paid by the Consumer: | $11.80 | | $12.00 | | $11.90 | |
| Composite Tax Rate | | 18.00% | | 20.00% | | 19.00% |
Tax Remittance Break Out | ||||||
| Total Tax paid on purchase | $1.80 | | $2.00 | | $1.90 | |
| PA Sales Tax break out % | $0.60 | 33.33% | $0.60 | 30.00% | $0.60 | 31.58% |
| County Sales Tax break out % | - | 0.00% | $0.20 | 10.00% | $0.10 | 5.26% |
| Fireworks Tax break out % | $1.20 | 66.67% | $1.20 | 60.00% | $1.20 | 63.16% |
| | | 100% | | 100% | | 100% |