HI HB1371

Establishes a new definition of "low alcohol by volume spirits beverage" as any alcoholic beverage containing not more than 10% alcohol by volume, including distilled spirits mixed with other ingredients.

Creates a new tax rate of $1.10 per wine gallon for low alcohol by volume spirits beverages, effective July 1, 2025.

Addresses inequitable tax treatment where low-alcohol beverages were previously taxed at the same rate as high-proof distilled spirits ($5.98 per wine gallon) regardless of actual alcohol content.

Aims to encourage local distilleries to produce ready-to-drink cocktails and enable fairer competition in the marketplace.

Takes effect June 30, 2025.