HI HB365

Establishes a new tax rate of $0.23 per gallon for beer produced by small breweries and brewpubs on the first 60,000 barrels brewed annually in Hawaii.

Defines "small brewery or brewpub" as a brewery or brewpub producing not more than 2 million barrels of beer per taxable year.

Beer produced by small breweries and brewpubs exceeding 60,000 barrels in a taxable year is taxed under the standard section 244D-4(a) rate instead of the reduced rate.

Defines "barrel" as a container holding not more than 31 gallons or wine gallons of liquor for purposes of this tax.

Applies to taxable years beginning after December 31, 2010, and requires dealers to report small brewery and brewpub beer sales separately on monthly tax returns.