SB 1232 Summary

• Establishes a $0.10 per drink surcharge on liquor taxes effective July 1, 2021, through June 30, 2024, with surcharge amounts based on 1.5 ounces of distilled spirits, 5 ounces of wine, or 12 ounces of beer and cooler beverages.

• Projected to generate $32 million annually at the 5-cent rate and $62.7 million at the 10-cent rate, with surcharge revenue deposited into the general fund.

• Cites health data showing an average of 384 alcohol-related deaths annually in Hawaii (2011-2015), with approximately 90 percent due to excessive alcohol use including binge drinking and heavy drinking.

• Finds that excessive alcohol use costs Hawaii an estimated $937.4 million annually, with the state government bearing 39.4 percent ($369.2 million) of those costs in healthcare, lost productivity, and criminal justice expenses.

• Automatically repeals June 30, 2024, restoring liquor tax rates to their previous form unless the legislature extends the surcharge.