HI SB1354

Amends the definition of "cooler beverage" in Hawaii Revised Statutes Section 244D-1 to include spirits-based beverages containing distilled spirits with seven percent or less alcohol by volume.

Adds a third category of cooler beverage (spirit beverage cooler) alongside existing wine coolers and malt beverage coolers, requiring added natural or artificial blending materials such as fruit juices, flavors, or colorings.

Intended to encourage local distilleries to produce ready-to-drink cocktails by applying the cooler beverage tax rate instead of the higher distilled spirits tax rate to qualifying spirit-based beverages.

Takes effect on July 1, 2021.