Bill > HB535

This bill establishes a three-year surcharge on liquor taxes in Hawaii from July 1, 2025 to June 30, 2028, with the goal of addressing the significant health and economic impacts of excessive alcohol consumption. The surcharge will be applied at a rate of cents per "drink," defined as 1.50 ounces of distilled spirits, five ounces of wine, or twelve ounces of beer, with the proceeds deposited into the state's general fund. The bill is motivated by data showing that alcohol contributes to approximately 384 alcohol-attributable deaths per year in Hawaii, with 90% of these deaths related to excessive drinking, which can cause numerous short-term and long-term health risks including injuries, chronic diseases, and social problems. The legislature notes that a 10-cent-per-drink surcharge would result in projected revenues of $62.7 million, with minimal impact on individual consumers - an excessive drinker would pay about $27 per year, a non-excessive drinker less than $5, and those who abstain from alcohol would pay nothing. After the three-year period, the liquor tax will revert to its previous form, effectively making this a temporary measure aimed at generating revenue while discouraging excessive alcohol consumption.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=535&year=2026