The Washington Department of Revenue has issued an industry guide on the application of excise tax to sales of fireworks.
Fireworks display businesses provide, set up, and discharge fireworks for their customers. Income from fireworks displays is subject to business and occupation (B&O) tax under the service and other activities classification.
Sales by independent retails are subject to retailing B&O tax and retail sales tax. The sales tax rate is based on the location of the fireworks store.
An agent selling fireworks for a fireworks distributor must report gross sales under the retailing B&O tax and retail sales tax and claim a "consignment sales" B&O tax deduction.
A fireworks distributor that sells to independent retailers who provide a reseller permit must report sales under the wholesaling B&O tax classification. If the sale is to a customer who does not provide a reseller permit, the sale is reported under the retailing B&O tax and sales tax classifications. A distributor that sells fireworks through an agent should report the sale under retailing B&O and retail sales tax classifications and claim a "gross sales collected by facilitator" deduction.
A nonprofit selling fireworks as an independent retailer for a qualifying fundraiser may be exempt from retail sales tax and retailing B&O tax. Nonprofits purchasing fireworks to sell to customers must provide a reseller permit to the distributor. If a nonprofit sells fireworks as an agent of a distributor, it must collect retail sales tax on sales to the public. The nonprofit must (i) report the gross sales under retailing B&O tax; (ii) take a "consignment sales" B&O tax deduction; and (iii) collect and submit retail sales tax. Fireworks Sales, Washington Department of Revenue, August 27, 2025