HB 1554 Summary

• Establishes reduced liquor tax rates for beer manufactured in Hawaii, effective July 1, 2011, to support the local small brewery industry which employs approximately 300 residents.

• Sets tax rate at $0.35 per wine gallon for non-draft beer manufactured in-state and $0.20 per wine gallon for draft beer manufactured in-state (compared to $0.93 and $0.54 respectively for out-of-state beer).

• Maintains existing tax rates for distilled spirits ($5.98), sparkling wine ($2.12), still wine ($1.38), and cooler beverages ($0.85) per wine gallon.

• Aims to align Hawaii's liquor tax policy with federal law, which provides approximately 61% lower tax rates for small brewery operations.