HI SB741

Increases liquor gallonage tax rates effective July 1, 2011: 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.

Establishes 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 beer produced beyond that threshold taxed at standard rates.

Defines "small brewery or brewpub" as a facility producing not more than two million barrels of beer per taxable year and defines "barrel" as containing not more than 31 gallons.

Permits retailers and manufacturers to provide consumer discounts on alcoholic beverages when purchased in combination with other merchandise through coupons or mail-in rebates, removing prior restrictions on premiums and free goods.

Takes effect July 1, 2011.