HI HB718

Defines "barrel beer" as beer in containers of 30.5 to 31.5 gallons and distinguishes it from draft beer.

Establishes a reduced tax rate of $0.27 per wine gallon on barrel beer for the first 1,860,000 gallons sold annually (approximately 60,000 barrels).

Applies the standard draft beer rate of $0.54 per wine gallon to barrel beer sales exceeding 1,860,000 gallons in a calendar year.

Designed to support Hawaii's craft beverage industry by providing tax incentives for barrel beer sales while mitigating legal challenges to discriminatory tax rates.

Takes effect January 1, 2016, and applies to taxable years beginning after December 31, 2015.