HB 887 Summary

• Expands the definition of "cooler beverage" to include spirits-based coolers (distilled spirits mixed with natural or artificial blending materials) with less than 12% alcohol by volume, to encourage local distilleries to produce ready-to-drink cocktails.

• Eliminates the separate "draft beer" category by repealing its definition (beer in containers of 7 gallons or more) and applies a uniform tax rate to all beer.

• Reduces the beer tax rate from $0.54 per wine gallon on draft beer and $0.93 per wine gallon on other beer to a single rate of $0.54 per wine gallon on all beer, effective July 1, 2019.

• Removes references to "draft beer" from the definitions of "distilled spirits" and "liquor" in Hawaii Revised Statutes section 244D-1.

• Takes effect January 1, 2020.