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HB 2851

Education; Education Reform Act of 2025; effective date.

2025 Regular Session Introduced by Toni Hasenbeck

Imposes a 6% excise tax on purchases of ground-based sparklers, with retailers collecting, reporting, and funding firefighter benefits and general revenue.

Second Reading referred to Rules
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Bill Summary · HB 2851

HB 2851 — Ground‑Based Sparkler Purchaser Excise Tax Act (overview)

Note: the legislative packet provided contains material from multiple states. This summary focuses on the “Ground‑Based Sparkler Purchaser Excise Tax Act” (the sparkler excise tax provisions) as introduced and reported in the Illinois bill text.

Purpose

Impose a targeted excise tax on purchases of ground‑based sparklers (consumer fireworks such as fountains, cones, showers of sparks, etc.) to raise state revenue and regulate retail sale/use of these devices.

Key provisions

  • Tax rate and base

    • Imposes a 6% excise tax on purchasers for the privilege of using ground‑based sparklers (not for resale).
    • “Purchase price” includes monetary consideration (cash, gift cards, credits, property) with limited exclusions (e.g., returned payment fees, finance charges).
    • The tax is in addition to other state or local occupation/privilege taxes.

  • Definitions

    • “Ground‑based sparkler” defined as non‑explosive, non‑aerial devices (including fountains, cones, showers) with up to 75 grams pyrotechnic composition per tube or 500 grams total for multi‑tube items.
    • Anti‑evasion terms defined: “automated sales suppression device” (zappers), “phantom‑ware,” “affirmative act in furtherance of evasion,” and “transaction data/transaction report.”

  • Retailer obligations & administration

    • Retailers who must collect the tax must register with the Department of Revenue and make periodic returns.
    • Retailers are liable to the Department for the tax due even if the retailer fails to collect it from purchasers; unpaid tax constitutes a state debt.
    • Recordkeeping and transaction reporting requirements (to detect evasion).
    • Prohibits bundling taxable ground‑based sparklers with untaxed items in retail combinations designed to avoid the tax.

  • Revenue distribution

    • Collected revenue is allocated: 25% to the Fireman’s Annuity and Benefit Fund, 25% to the Firefighters’ Pension Investment Fund, and 50% to the State General Revenue Fund.

  • Enforcement and penalties

    • Department of Revenue empowered to administer and enforce the Act, adopt rules, audit, and require records.
    • Establishes penalties for violations and anti‑evasion conduct.
    • Provides for seizure of ground‑based sparklers and inspection of business premises; the bill text (as introduced) describes broad enforcement tools including arrest and searches/seizures (the text indicates warrantless search/seizure authority and post‑seizure hearing requirements — see enacted language for final limits).

  • Other restrictions/amendments

    • Prohibits sale of ground‑based sparklers to persons under age 18.
    • Allows municipalities to prohibit sale and use of ground‑based sparklers on public property.
    • Amends related fireworks/pyrotechnic statutes (Fireworks Regulation Act, Pyrotechnic Use Act) to incorporate age and local authority provisions.

Who is affected

  • Consumers/purchasers of ground‑based sparklers (6% tax added).
  • Retailers who sell ground‑based sparklers (registration, collection, reporting, recordkeeping, potential liability).
  • Municipalities (ability to restrict sale/use on public property).
  • Firefighter pension/annuity funds (receive dedicated shares of revenue).
  • Department of Revenue (administration and enforcement burden).

Timeline / procedural status

  • Introduced (Illinois): February 6, 2025 (Rep. Robert “Bob” Rita).
  • Bill passed and enrolled; reported actions indicate passage in late May 2025.
  • Signed by Governor: June 20, 2025.
  • Statute text sets the tax to begin July 1, 2025; legislative enrollments record an effective date of September 1, 2025. (Check the enacted law for the operative effective date and any transitional rules.)

Potential impacts / considerations

  • Revenue: creates a new revenue stream, with half directed to general revenue and half to firefighter pension/benefit funds.
  • Compliance costs: additional administrative burden on retailers (registration, transaction reporting, anti‑evasion compliance).
  • Public safety / access: tighter regulation on who may buy sparklers (minimum age 18) and local authority to ban sales/uses on public property.
  • Enforcement: strong enforcement tools and anti‑evasion provisions, including measures against “zappers” and phantom‑ware.

For specific statutory text, enforcement limits (search/seizure/arrest), and exact effective dates, refer to the enacted bill as enrolled by the legislature and the official published statute.

Compiled from official sources — confirm details with the bill’s official record.

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