Bill > HB1371

This bill establishes a new definition for "low alcohol by volume spirits beverage" and creates a specific tax rate for these products in Hawaii. Specifically, the bill defines a low alcohol by volume spirits beverage as an alcoholic drink containing no more than 10% alcohol by volume, which includes distilled spirits mixed with other ingredients. Currently, all beverages containing distilled spirits are taxed as if they are 100% alcohol, which the legislature finds unfair and discouraging to local distilleries. Starting July 1, 2025, the bill introduces a new tax rate of $1.10 per wine gallon specifically for these low-alcohol beverages, which is significantly lower than the $5.98 per wine gallon tax on distilled spirits. The purpose of this legislation is to encourage local production of ready-to-drink cocktails and low-alcohol beverages, create fairer market competition, and update alcohol taxation to better reflect the modern beverage marketplace. By providing a more equitable tax structure, the bill aims to support local distilleries and align Hawaii's alcohol regulations with contemporary drink trends.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1371&year=2026