SB 1006 Summary

• Expands the definition of "cooler beverage" to include spirits-based beverages containing distilled spirits with less than five percent alcohol by volume and added natural or artificial blending materials, allowing local distilleries to produce ready-to-drink cocktails at the lower cooler beverage tax rate.

• Eliminates the distinction between draft beer (previously defined as beer in containers of seven gallons or more) and other beer by removing the "draft beer" definition from Hawaii Revised Statutes.

• Applies a single, unified tax rate to all beer regardless of container size or packaging type, replacing the previous two-tier system that taxed draft beer at a lower rate than other beer.

• Removes references to "draft beer" from the definitions of "distilled spirits" and "liquor" in Section 244D-1 and establishes a new unified beer tax category effective July 1, 2019.

• Effective July 1, 2112 (note: effective date appears to contain a typographical error).