HI HB1187

Increases liquor tax rates effective July 1, 2011, by amending Section 244D-4 of Hawaii Revised Statutes (specific dollar amounts left blank in the legislation).

Establishes a general excise tax exemption for wholesalers on gross income or gross proceeds from the sale of liquor subject to the liquor gallonage tax under Chapter 237.

Creates a reduced tax rate of 23 cents per gallon for small breweries and brewpubs on the first 60,000 barrels of beer brewed or produced annually, with excess production taxed at standard rates.

Defines a small brewery or brewpub as an entity producing not more than 2 million barrels of beer per taxable year and a barrel as containing not more than 31 gallons or wine gallons.

Amends liquor tax return, record-keeping, and exemption provisions to account for the new small brewery and brewpub tax classification.