SB 641: RELATING TO ALCOHOL.

A BILL FOR AN ACT

RELATING TO ALCOHOL.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 244D-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Low alcohol by volume spirits beverage" means any alcoholic beverage containing no more than five per cent alcohol by volume.  "Low alcohol by volume spirits beverage" includes distilled spirits mixed with other ingredients, including both nonalcohol and alcohol components."

     SECTION 2.  Section 244D-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Every person who sells or uses any liquor in the State not taxable under this chapter, in respect of the transaction by which the person or the person's vendor acquired the liquor, shall pay a gallonage tax that is hereby imposed at the following rates for the various liquor categories defined in section 244D-1:

     On [July 1, 1998,] July 1, 2025, and thereafter, the tax rate shall be:

     (1)  $5.98 per wine gallon on distilled spirits;

     (2)  $2.12 per wine gallon on sparkling wine;

     (3)  $1.38 per wine gallon on still wine;

     (4)  $0.85 per wine gallon on cooler beverages;

     (5)  $0.93 per wine gallon on beer other than draft beer; [and]

     (6)  $0.54 per wine gallon on draft beer; and

     (7)  $0.85 per wine gallon on low alcohol by volume spirits beverages;

and at a proportionate rate for any other quantity so sold or used."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2050.

Report Title:

Alcohol; Low Alcohol by Volume Spirits Beverage; Liquor Tax; Liquor Law; Definition

Description:

Defines "low alcohol by volume spirits beverage".  Establishes a tax on low alcohol by volume spirits beverages at a rate of $0.85 per wine gallon.  Effective 7/1/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to alcohol.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 244D-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Low alcohol by volume spirits beverage" means any alcoholic beverage containing no more than five per cent alcohol by volume.  "Low alcohol by volume spirits beverage" includes distilled spirits mixed with other ingredients, including both nonalcohol and alcohol components."

     SECTION 2.  Section 244D-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Every person who sells or uses any liquor in the State not taxable under this chapter, in respect of the transaction by which the person or the person's vendor acquired the liquor, shall pay a gallonage tax that is hereby imposed at the following rates for the various liquor categories defined in section 244D-1:

     On [July 1, 1998,] July 1, 2025, and thereafter, the tax rate shall be:

     (1)  $5.98 per wine gallon on distilled spirits;

     (2)  $2.12 per wine gallon on sparkling wine;

     (3)  $1.38 per wine gallon on still wine;

     (4)  $0.85 per wine gallon on cooler beverages;

     (5)  $0.93 per wine gallon on beer other than draft beer; [and]

     (6)  $0.54 per wine gallon on draft beer; and

     (7)  $0.85 per wine gallon on low alcohol by volume spirits beverages;

and at a proportionate rate for any other quantity so sold or used."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2025.

Report Title:

Alcohol; Low Alcohol by Volume Spirits Beverage; Liquor Tax; Liquor Law; Definition

Description:

Defines "low alcohol by volume spirits beverage".  Establishes a tax on low alcohol by volume spirits beverages at a rate of $0.85 per wine gallon.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 512

Honolulu, Hawaii

RE:    S.B. No. 641

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 641 entitled:

"A BILL FOR AN ACT RELATING TO ALCOHOL,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Define "low alcohol by volume spirits beverage"; and

     (2)  Establish a tax on low alcohol by volume spirits at a rate of $0.85 per wine gallon.

     Your Committee received testimony in support of this measure from Maui Wine, Napali Brewing Company, and one individual.

     Your Committee received testimony in opposition to this measure from the Beer Institute and Wine Institute.

     Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

     Your Committee finds that it is necessary to define the concept of a "low alcohol by volume spirits beverage" in the Hawaii Revised Statutes governing Liquor Tax Law and to apply an appropriate tax on this new category of product when it is sold in the State.  This definition is needed to fill gaps in existing law and address the popular, growing industry of craft beverages, which comprises drinks such as canned alcoholic cocktails and alcoholic seltzers. 

     Your Committee has amended this measure by inserting an effective date of July 1, 2050, to encourage further discussion.

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 641, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 641, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,