HOUSE OF REPRESENTATIVES	H.B. NO.	2483
TWENTY-SEVENTH LEGISLATURE, 2014		H.D. 1
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 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, and distilled spirits produced by a small manufacturer.

     SECTION 2.  Section 244D-1, Hawaii Revised Statutes, is amended by adding three 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.

     "Small manufacturer" means a distillery that produces not more than       gallons of distilled spirits 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] 84 cents per wine gallon on cooler beverages;

     (5)  [$0.92] 92 cents per wine gallon on beer other than draft beer;

     (6)  [$0.53] 53 cents per wine gallon on draft beer;

     On July 1, 1998, and thereafter, except as otherwise provided in paragraphs (7) and (8), 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, 23 cents per wine gallon on draft beer and beer other than draft beer that is brewed or produced by a small brewery or brewpub;

     (8)  Beginning on January 1, 2015, $2.57 per wine gallon on distilled spirits produced by a small manufacturer;

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, 2112, and shall apply to taxable years beginning after December 31, 2014.

 

 

Report Title:

Liquor Tax; Small Breweries or Brewpubs; Small Manufacturers

 

Description:

Establishes a reduced per gallon tax rate on draft beer and beer other than draft beer that is brewed or produced by a small brewery or brewpub and distilled spirits produced by a small manufacturer.  Effective July 1, 2112.  (HB2483 HD1)

 

 

 

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