Editorials

Despite the noise, firework revenues yet to cause a bang

You never would have known there was a law against it in Morgantown.
But what’s more surprising is that firework sales and the revenues from them have fallen way short of projections.
We’re not going to opine here on the impossibility of enforcing a ban on setting off fireworks — especially on the 4th of July — in our city, let alone go on a rant.
Yes, we know that aside from panicking many dogs for miles, possibly starting a brush fire and annoying some, there’s an inherent danger in big and small explosions.
However, we have to wonder what happened to the estimates about revenues from firework sales since June 2016 when the state Legislature legalized their sale.
At that time, the Tax Department projected revenues from a 12% fireworks safety fee and the 6% sales tax on firework sales would total about $2.8 million in annual revenue.
It appears, according to a January 2019 Fireworks Safety Fee Report, that estimate missed the mark by nearly 65%. The safety fee raised about $644,000 in 2018. When the sales tax is added, total revenues for fireworks sales in 2018 hit $966,000.
In all, fireworks’ sales raised a total of about $2.1 million from July 1, 2016 to Dec. 31, 2018 — the first 30 months. (Due to the administrative lag taxes and fees collected in one month are not remitted to the state until the following month.)
The report points out several reason why these revenues have yet to lift-off including:
Many neighboring state charge lower fees and taxes or none (Ohio and Kentucky only collect sales tax) at all.
Those states’ fireworks vendors have an already established customer base across state lines.
And those fireworks retailers in most border states have permanent, year-round sites, unlike our state’s seasonal and transient tent outlets.
Some might be disappointed, even discouraged, about fireworks sales revenues. We’re not.
For those that are annoyed by the noise they might take some consolation that since fireworks were legalized sales have trended downward.
Still, everyone can take some heart in knowing that that $2.1 million that was collected is doing a world of good.
The legislation legalizing fireworks — HB 2852 — sets aside 75% of that revenue for the state veterans’ nursing homes and 25% for volunteer fire departments.
No, that $2.1 million is not even close to the $4.725 million that was projected over these first 30 months.
But if last week’s fireworks displays — legal and illegal — things might be looking up or down, depending on your perspective.