HI HB840

Increases liquor excise tax rates effective July 1, 2011, including distilled spirits from $5.98 to $7.18 per wine gallon, sparkling wine from $2.12 to $2.54, still wine from $1.38 to $1.66, cooler beverages from $0.85 to $1.02, beer from $0.93 to $1.12 per wine gallon, and draft beer from $0.54 to $0.65 per wine gallon.

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

Defines "small brewery or brewpub" as operations producing not more than 2 million barrels per taxable year and "barrel" as containing not more than 31 gallons.

Permits consumers to receive discounts, coupons, and mail-in rebates on combined purchases of alcoholic beverages and other merchandise, removing the prior prohibition on such promotional offers.

Effective date is July 1, 2011.