HB 1374 Summary

• Establishes a new liquor category called "low alcohol by volume spirits beverage" defined as any alcoholic beverage containing not more than 7% alcohol by volume, including distilled spirits mixed with other ingredients.

• Reduces tax rates for class 18 small craft producer pub licensees effective July 1, 2025, including $1.98 per wine gallon on distilled spirits (down from $5.98), $1.38 per wine gallon on sparkling wine (down from $2.12), and $0.35 per wine gallon on beer (down from $0.93).

• Applies new tax rate of $1.28 per wine gallon specifically to low alcohol by volume spirits beverages for class 18 small craft producer pub licensees.

• Increases production limits for class 18 small craft producer pub licensees from 70,000 barrels to 175,000 barrels of malt beverages per license year.

• Takes effect on July 1, 2025.