Bill > HB939

This bill introduces several changes to Hawaii's alcohol regulations, primarily focusing on defining and taxing "low alcohol by volume spirits beverages" and expanding production limits for small craft producers. The bill defines low alcohol by volume spirits beverages as alcoholic drinks containing no more than 7% alcohol by volume, which can include distilled spirits mixed with other ingredients. It establishes a new tax rate of $0.93 per wine gallon specifically for these low alcohol beverages, alongside existing tax rates for other alcohol types. The bill also significantly increases production limits for small craft producers, raising the annual production caps from 70,000 to 250,000 barrels for malt beverages, from 20,000 to 100,000 barrels for wine, and from 7,500 to 75,000 barrels for alcohol. These changes are set to take effect on July 1, 3000, and will automatically sunset (be repealed) on December 31, 2028, reverting the relevant statutes to their previous form. The bill aims to provide more flexibility for small alcohol producers and create a new tax category for low-alcohol spirit beverages.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=939&year=2026