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.