Bill > HB1374

This bill aims to support local alcohol manufacturers by modifying existing liquor laws in Hawaii, primarily focusing on small craft producer pub licensees. The bill introduces a new definition for "low alcohol by volume spirits beverage" as an alcoholic drink containing no more than 7% alcohol by volume, which includes distilled spirits mixed with other ingredients. It increases the production limit for small craft producer pub licensees from 70,000 to 175,000 barrels of malt beverages and establishes significantly lower tax rates for these licensees starting July 1, 2025. Specifically, the tax rates for class 18 small craft producer pub licensees will be reduced for various alcohol categories, such as lowering the tax on distilled spirits from $5.98 to $1.98 per wine gallon and on beer from $0.93 to $0.35 per wine gallon. The bill also adds a new category of low alcohol by volume spirits beverages with a tax rate of $1.28 per wine gallon. The legislative intent is to encourage local manufacturing by providing economic incentives and support for small craft alcohol producers in Hawaii, recognizing their potential contribution to the state's economic development.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1374&year=2026