Bill > HB1370

This bill amends Hawaii's liquor tax laws by changing the definition of "draft beer" from beer in containers of seven gallons or more to beer in containers of five gallons or more. The legislative findings indicate that the existing tax scheme was problematic because most restaurants, bars, and small brewers use kegs smaller than seven gallons due to limited space and production capabilities. This created a taxation system that was considered confusing, burdensome, and unfairly discriminatory, as no other alcoholic beverages were taxed based on container size. By lowering the container size threshold from seven to five gallons, the bill aims to align the tax definition with current industry practices and provide a more equitable approach to taxing draft beer. The bill will take effect on January 1, 2026, giving businesses and tax authorities time to prepare for the change.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1370&year=2025