RELATING TO ALCOHOL.

Taxes

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: TODD, QUINLAN
Last action: 2026-04-23
Official status: Received notice of appointment of House conferees (Hse. Com. No. 817).
Effective date: Not listed

Plain English Breakdown

The effective date mentioned in the bill text is July 1, 2025, not July 1, 3000 as stated in the summary description.

Alcohol Tax Law Changes

This bill defines a new type of low-alcohol drink, sets a tax rate for it, increases production limits for small craft producers, and ends on December 31, 2028.

What This Bill Does

Defines 'low alcohol by volume spirits beverage' as any alcoholic drink with no more than five percent alcohol content.
Adds a new tax of $0.85 per wine gallon for low alcohol by volume spirits beverages.
Increases the production limits for small craft producers who make these drinks.
The law will end on December 31, 2028.

Who It Names or Affects

People and businesses that sell or produce alcoholic drinks in Hawaii.

Terms To Know

Low alcohol by volume spirits beverage: An alcoholic drink with no more than five percent alcohol content, including mixed drinks with both non-alcoholic and alcoholic ingredients.

Limits and Unknowns

The bill does not specify how the tax revenue will be used.
It is unclear what happens after December 31, 2028 when the law ends.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment adds a new definition for 'low alcohol by volume spirits beverage' and sets a tax rate of $0.93 per wine gallon for these beverages, effective July 1, 2025.

Adds the definition of 'low alcohol by volume spirits beverage' to include any alcoholic beverage with no more than five percent alcohol by volume.
Establishes a tax rate of $0.93 per wine gallon for low alcohol by volume spirits beverages starting July 1, 2025.

The amendment specifies that the new law will be repealed on December 31, 2028.
There is a discrepancy in the effective date of the act (July 1, 3000) which seems incorrect and may need clarification.

SD1

Hawaii published version SD1

Plain English: This amendment adds a new definition for 'low alcohol by volume spirits beverage' and sets a tax rate of $0.93 per wine gallon for these beverages, effective July 1, 2025, until December 31, 2028.

Adds the definition of 'low alcohol by volume spirits beverage' to include any alcoholic beverage with no more than seven percent alcohol by volume.
Establishes a tax rate of $0.93 per wine gallon for low alcohol by volume spirits beverages starting July 1, 2025.

The effective date of July 1, 3000, is likely an error and should be disregarded in favor of the sunset provision on December 31, 2028.

SD2

Hawaii published version SD2

Plain English: The amendment defines 'low alcohol by volume spirits beverage', sets a tax rate for these beverages, and increases the production limits for small craft producers.

Defines 'low alcohol by volume spirits beverage' as any alcoholic beverage containing no more than seven percent alcohol by volume.
Establishes a new tax of $0.93 per wine gallon on low alcohol by volume spirits beverages.
Increases the production limits for small craft producer pubs to 250,000 barrels of malt beverages, 100,000 barrels of wine, and 75,000 barrels of alcohol.

The exact impact on current liquor taxes and production limits is not fully explained in the provided text.

Bill History

2026-04-23 S
Received notice of appointment of House conferees (Hse. Com. No. 817).
2026-04-23 H
House Conferees Appointed: Matayoshi, Yamashita Co-Chairs; Pierick.
2026-04-02 S
Received notice of the discharge of all House Conferees (Hse. Com. No. 457).
2026-04-01 H
House Conferee(s) discharged.
2026-03-20 H
Received notice of all Senate conferees being discharged (Sen. Com. No. 409).
2026-03-20 S
Senate Conferee(s) discharged.
2025-12-08 D
Carried over to 2026 Regular Session.
2025-04-25 S
Conference committee meeting to reconvene on 04-25-25 5:30 PM; Conference Room 224.
2025-04-25 S
Conference committee meeting to reconvene on 04-25-25 3:50 PM; Conference Room 224.
2025-04-24 H
Conference Committee Meeting will reconvene on Friday 04-25-25 2:30PM in conference room 224.
2025-04-23 H
Conference Committee Meeting will reconvene on Thursday 04-24-25 2:30PM in conference room 224.
2025-04-22 H
Conference Committee Meeting will reconvene on Wednesday 04-23-25 2:30PM in conference room 224.
2025-04-21 H
Bill scheduled for Conference Committee Meeting on Tuesday, 04-22-25 2:30PM in conference room 224.
2025-04-21 S
Received notice of appointment of House conferees (Hse. Com. No. 755).
2025-04-17 H
Received notice of Senate conferees (Sen. Com. No. 828).
2025-04-17 S
Senate Conferees Appointed: Keohokalole Chair; Wakai Co-Chair; McKelvey, Richards, Fevella.
2025-04-17 H
House Conferees Appointed: Matayoshi, Takenouchi Co-Chairs; Pierick.
2025-04-11 S
Received notice of disagreement (Hse. Com. No. 704).
2025-04-10 H
House disagrees with Senate amendment (s).
2025-04-08 H
Returned from Senate (Sen. Com. No. 691) in amended form (SD 2).
2025-04-08 S
Report Adopted; Passed Third Reading, as amended (SD 2). Ayes, 23; Aye(s) with reservations: none. Noes, 2 (Senator(s) Awa, DeCorte). Excused, 0 (none). Transmitted to House.
2025-04-04 S
48 Hrs. Notice 04-08-25.
2025-04-04 S
Reported from WAM (Stand. Com. Rep. No. 1746) with recommendation of passage on Third Reading, as amended (SD 2).
2025-04-02 S
The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.
2025-03-27 S
The committee(s) on WAM will hold a public decision making on 04-02-25 10:01AM; Conference Room 211 & Videoconference.
2025-03-21 S
Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.
2025-03-21 S
Reported from CPN (Stand. Com. Rep. No. 1338) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
2025-03-19 S
The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 3 Aye(s): Senator(s) Keohokalole, Fukunaga, McKelvey; Aye(s) with reservations: none ; 1 No(es): Senator(s) Awa; and 1 Excused: Senator(s) Richards.
2025-03-14 S
The committee(s) on CPN has scheduled a public hearing on 03-19-25 10:00AM; Conference Room 229 & Videoconference.
2025-03-04 S
Referred to CPN, WAM.
2025-03-04 S
Passed First Reading.
2025-03-04 S
Received from House (Hse. Com. No. 131).
2025-02-28 H
Passed Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Pierick, Templo, Ward excused (4). Transmitted to Senate.
2025-02-28 H
Reported from FIN (Stand. Com. Rep. No. 931), recommending passage on Third Reading.
2025-02-21 H
The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 13 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Miyake, Morikawa, Templo, Reyes Oda; Ayes with reservations: none; Noes: none; and 3 Excused: Representative(s) Lee, M., Alcos, Ward.
2025-02-19 H
Bill scheduled to be heard by FIN on Friday, 02-21-25 12:00PM in House conference room 308 VIA VIDEOCONFERENCE.
2025-02-11 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with Representative(s) Garcia voting aye with reservations; Representative(s) Amato voting no (1) and Representative(s) Cochran, Ward excused (2).
2025-02-11 H
Reported from CPC (Stand. Com. Rep. No. 421) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
2025-02-04 H
The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Matayoshi, Chun, Ilagan, Ichiyama, Marten, Tam, Pierick; Ayes with reservations: Representative(s) Iwamoto; Noes: none; and 2 Excused: Representative(s) Kong, Lowen.
2025-01-31 H
Bill scheduled to be heard by CPC on Tuesday, 02-04-25 2:00PM in House conference room 329 VIA VIDEOCONFERENCE.
2025-01-23 H
Referred to CPC, FIN, referral sheet 3
2025-01-23 H
Introduced and Pass First Reading.
2025-01-21 H
Pending introduction.

Official Summary Text

RELATING TO ALCOHOL.
Alcohol; Liquor Tax Law; Low Alcohol by Volume Spirits Beverage; Definition; Rate
Defines "low alcohol by volume spirits beverage". Establishes a tax on low alcohol by volume spirits beverages at a rate of $0.93 per wine gallon. Increases small craft producer production limits. Sunsets 12/31/2028. Effective 7/1/3000. (SD2)

Current Bill Text

Read the full stored bill text

HB939

HOUSE OF REPRESENTATIVES

H.B. NO.

939

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to alcohol
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION 1.
�
Section 244D-1, Hawaii Revised Statutes, is
amended by adding a new definition to be appropriately inserted and to read as
follows:

����
"
"Low alcohol by volume
spirits beverage" means any alcoholic beverage containing no more than
five per cent alcohol by volume.
�
"Low
alcohol by volume spirits beverage" includes distilled spirits mixed with
other ingredients, including both nonalcohol and alcohol components.
"

����
SECTION
2
.
�
Section 244D-4,
Hawaii Revised Statutes, is amended by amending subsection (a) to read as
follows:

����
"
(a)
�
Every person who
sells or uses any liquor in the State not taxable under this chapter, in
respect of the transaction by which the person or the person's vendor acquired
the liquor, shall pay a gallonage tax that is hereby imposed at the following
rates for the various liquor categories defined in section 244D-1:

����
On [
July 1, 1998,
]
July 1, 2025,

and thereafter, the tax rate shall be:

����
(1)
�
$5.98
per wine gallon on distilled spirits;

����
(2)
�
$2.12
per wine gallon on sparkling wine;

����
(3)
�
$1.38
per wine gallon on still wine;

����
(4)
�
$0.85
per wine gallon on cooler beverages;

����
(5)
�
$0.93
per wine gallon on beer other than draft beer; [
and
]

����
(6)
�
$0.54
per wine gallon on draft beer;
and

����
(7)
�
$0.85
per wine gallon on low alcohol by volume spirits beverages;

and
at a proportionate rate for any other quantity so sold or used.
"

����
SECTION
3.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 4.
�
This Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

Report Title:

Alcohol;
Low Alcohol by Volume Spirits Beverage; Liquor Tax; Liquor Law; Definition

Description:

Defines
"low alcohol by volume spirits beverage".
�
Establishes a tax on low alcohol by volume
spirits beverages at a rate of $0.85 per wine gallon.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.