Upcoming Events

Open Modal

Prediction Of Revenues From Firework Sales Falls Short

The Iowa Department of Revenue (IDR) has conducted a review of the first round of fireworks sales in the state and has found the revenues fell well short of the predictions. The IDR had originally estimated that sales would reach $17.8 million and result in $1.1 million in General Fund revenue. The reality, however, is that actual year-to-date sales were reported at $9.9 million, generating around $600,000 in revenue. One of the biggest obstacles the department identifies in accurately estimating the total value of fireworks sold is that existing retailers do not report what share of their total sales were newly legalized fireworks. Median taxable sales reported by 31-firework-exclusive retailers was $26,500, resulting in a tax remittance of $1,590. The 25th percentile of sellers made $11,033 in sales with a tax remittance of $662. The remainder of the revenue is based on the assumption that each existing retailer had sales equal to that 25th percentile.

Recommended Posts

Loading...