Bill Text: HI SB644 | 2012 | Regular Session | Amended

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Bill Title: Liquor Tax; Small Breweries and Brewpubs

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [SB644 Detail]

Download: Hawaii-2012-SB644-Amended.html

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STAND. COM. REP. NO. 247

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 644

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 644 entitled:

 

"A BILL FOR AN ACT RELATING TO LIQUOR TAX LAW,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to reduce the gallonage tax paid each year by small brewers and brewpubs located in the State for the purpose of promoting the development of this small business-based industry within the State.

 

     Your Committee received testimony in support of this measure from Hawai‘i Nui Brewing and Kona Brewing Company.  Your Committee received testimony in opposition to this measure from Anheuser Busch Companies.  Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

 

     Your Committee finds that the cost of brewing beer in the State is significantly higher than elsewhere in the nation; in fact it is less costly to produce and package beer on the mainland then ship the finished product to Hawaii.  Your Committee further finds that developing a robust craft beer and brewpub industry will create jobs in the production of a product for consumption within the State and for export.  Your Committee also finds that tax incentives for craft brewing in other states have created thriving industries composed of multiple small businesses that employ workers in production and bottling operations and contribute directly to state coffers through tax payments.  Finally, your Committee finds that the development of a local craft beer and brewpub industry will help to diversify Hawaii's economy and create opportunities to develop a production-based industry while complementing the State's existing service- and tourism-based economy.

 

     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 644, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 644, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

 

		____________________________ ROSALYN H. BAKER, Chair