THE SENATE	S.B. NO.	3041
TWENTY-SEVENTH LEGISLATURE, 2014		S.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO LIQUOR TAX LAW.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The purpose of this Act is to support the growing craft beverage industry in Hawaii by applying a reduced gallonage tax on draft beer and beer other than draft beer brewed or produced by a small brewery or brewpub.

     SECTION 2.  Section 244D-1, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows:

     ""Barrel" means a barrel containing not more than thirty-one gallons or wine gallons of liquor.

     "Small brewery or brewpub" means a brewery or brewpub that brews or produces not more than sixty thousand barrels of beer per taxable year."

     SECTION 3.  Section 244D-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Every person who sells or uses any liquor in the State not taxable under this chapter, in respect of the transaction by which the person or the person's vendor acquired the liquor, shall pay a gallonage tax which is hereby imposed at the following rates for the various liquor categories defined in section 244D-1:

     [For the period July 1, 1997, to June 30, 1998, the tax rate shall be:

     (1)  $5.92 per wine gallon on distilled spirits;

     (2)  $2.09 per wine gallon on sparkling wine;

     (3)  $1.36 per wine gallon on still wine;

     (4)  $0.84 per wine gallon on cooler beverages;

     (5)  $0.92 per wine gallon on beer other than draft beer;

     (6)  $0.53 per wine gallon on draft beer;]

     On July 1, 1998, and thereafter, except as otherwise provided in paragraph (7), the tax rate shall be:

     (1)  $5.98 per wine gallon on distilled spirits;

     (2)  $2.12 per wine gallon on sparkling wine;

     (3)  $1.38 per wine gallon on still wine;

     (4)  [$0.85] 85 cents per wine gallon on cooler beverages;

     (5)  [$0.93] 93 cents per wine gallon on beer other than draft beer;

     (6)  [$0.54] 54 cents per wine gallon on draft beer;

     (7)  Beginning on January 1, 2015,          cents per wine gallon on draft beer and beer other than draft beer that are brewed or produced by a small brewery or brewpub;

and at a proportionate rate for any other quantity so sold or used."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2050, and shall apply to taxable periods beginning after December 31, 2014.

 

 

Report Title:

Liquor Tax; Small Breweries or Brewpubs

 

Description:

Defines "barrel" and "small brewery or brewpub".  Establishes an unspecified tax rate on draft beer and beer other than draft beer that are brewed or produced by a small brewery or brewpub.  Effective 7/1/2050.  (SD2)

 

 

 

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