Category Archives: Liquor (HRS 244D)

HB 2412; SB 2712 (Identical)

SUBJECT:  LIQUOR, Broaden Cooler Beverage Definition, Harmonize Tax Rate on Beer

BILL NUMBER:  HB 2412; SB 2712 (Identical)

INTRODUCED BY:  HB by YAMASHITA, CULLEN, FUKUMOTO, HASHEM, ICHIYAMA, JOHANSON, KONG, C. LEE, LUKE, MCKELVEY, MIZUNO, MORIKAWA, NISHIMOTO, SAIKI, SAY, TAKAYAMA, TAKUMI, TOKIOKA, YAMANE, Ito, San Buenaventura; SB by WAKAI, Baker, Dela Cruz, K. Kahele, Nishihara, Riviere

EXECUTIVE SUMMARY:  Includes distilled beverages containing spirits and added blending materials that contain less than twelve per cent of alcohol by volume in the cooler beverage definition. Deletes definition of draft beer. Applies the tax rate on draft beer to all beer.  The bill appears reasonable to align the tax system to current industry practices.

Continue reading HB 2412; SB 2712 (Identical)

HB 1527, HD-1

SUBJECT:  INCOME, GENERAL EXCISE, PUBLIC SERVICE COMPANY, FRANCHISE, LIQUOR, Periodic Review of Exemptions and Credits

BILL NUMBER:  HB 1527, HD-1

INTRODUCED BY:  House Committee on Finance

EXECUTIVE SUMMARY:  This bill would require the Department of Taxation to periodically review exemptions and credits now provided under various tax chapters.  This type of review, however, should already be within the purview of the Tax Review Commission that is provided for in our constitution and is supposed to be appointed this year (given that it wasn’t appointed last year when it was supposed to happen).

Continue reading HB 1527, HD-1

HB 1527

SUBJECT:  INCOME, GENERAL EXCISE, PUBLIC SERVICE COMPANY, FRANCHISE, LIQUOR, Periodic Review of Exemptions and Credits

BILL NUMBER:  HB 1527

INTRODUCED BY:  LOWEN, BROWER, ICHIYAMA, ING, JORDAN, KEOHOKALOLE, KOBAYASHI, C. LEE, LOPRESTI, LUKE, MORIKAWA, NAKASHIMA, NISHIMOTO, OHNO, ONISHI, SAIKI, YAMANE, YAMASHITA, Johanson, McKelvey

EXECUTIVE SUMMARY:  This bill would require the Department of Taxation to periodically review exemptions and credits now provided under various tax chapters.  This type of review, however, should already be within the purview of the Tax Review Commission that is provided for in our constitution and is supposed to be appointed this year (given that it wasn’t appointed last year when it was supposed to happen).

Continue reading HB 1527

SB 3041, SD-1

SUBJECT: LIQUOR, Small breweries and brewpubsBILL

INTRODUCED BY: Senate Committee on Commerce and Consumer Protection

BRIEF SUMMARY: Amends HRS section 244D-4 to provide that effective January 1, 2015 draft beer and beer produced by a small brewery or brewpub shall be taxed at 47 cents per wine gallon.

Amends HRS section 244D-1 to define “barrel” as a barrel containing not more than thirty-one gallons or wine gallons of liquor. Defines “small brewery or brewpub” as a brewery or brewpub that brews or produces not more than sixty thousand barrels of beer per taxable year.

EFFECTIVE DATE: July 1, 2050; applicable to tax years beginning after December 31, 2014

STAFF COMMENTS: Currently, beer is subject to a state tax of $0.93 cents per wine gallon while draft beer is subject to a tax of $0.54, still wine is taxed at $1.38 per wine gallon; sparkling wine is taxed at $2.12 per wine gallon and distilled spirits are taxed at $5.98 per wine gallon.

The proposed measure would merely establish a reduced liquor tax rate for draft beer and beer produced by a small brewery or brewpub.

 

 

SB 3041; HB 2483 (Identical)

SUBJECT: LIQUOR, Small breweries and brewpubs

INTRODUCED BY: SB by Baker and 4 Democrats; HB by McKelvey

BRIEF SUMMARY: Amends HRS section 244D-4 to provide that effective January 1, 2015: (1) draft beer and beer produced by a small brewery or brewpub shall be taxed at 23 cents per wine gallon; (2) still wine and sparkling wine produced by a small winery shall be taxed at 59 cents per wine gallon; and (3) distilled spirits produced by a small manufacturer shall be taxed at $2.57 per wine gallon.

Amends HRS section 244D-1 to define “barrel” as a barrel containing not more than thirty-one gallons or wine gallons of liquor. Defines “small brewery or brewpub” as a brewery or brewpub that brews or produces not more than sixty thousand barrels of beer per taxable year; “small manufacturer” as a distillery that produces not more than _____ gallons of distilled spirits per taxable year; and “small brewery or brewpub” as a brewery or brewpub that brews or produces not more than two million barrels of beer per taxable year.

EFFECTIVE DATE: July 1, 2014; applicable to tax years beginning after December 31, 2014

STAFF COMMENTS: Currently, beer is subject to a state tax of $0.93 cents per wine gallon while draft beer is subject to a tax of $0.54, still wine is taxed at $1.38 per wine gallon; sparkling wine is taxed at $2.12 per win gallon and distilled spirits are taxed at $5.98 per wine gallon.

While the proposed measure would establish a reduced liquor tax rate for draft beer, beer, still wine, sparkling wine, and distilled spirits produced by a small brewery or brewpub, it is questionable whether the preferential rates proposed in this measure for will be construed as discriminatory as they would favor “locally brewers and brewpubs” as compared to products that are imported. If nothing else, lawmakers should secure a legal opinion as to the constitutionality of conferring a preferential rate for brewers and brewpubs located “in the state.”