The legislation seeks to amend the existing liquor tax laws (as outlined in Section 244D-4 of the Hawaii Revised Statutes) and focuses on reducing the adverse effects associated with high rates of alcohol consumption, which includes reliance on medical services, law enforcement, and other societal costs linked with health issues stemming from alcohol abuse. With the implementation of the surcharge aimed primarily at habitual drinkers, the bill emphasizes a dual approach: generating state revenue while also potentially mitigating the public health crisis associated with excessive alcohol use. This is particularly relevant as statutory estimates indicate over 300 alcohol-related deaths annually in Hawaii, with many resulting from excessive use.
House Bill 898 aims to introduce a three-year surcharge on liquor tax in Hawaii, addressing the critical issue of excessive alcohol consumption that results in significant public health concerns. The bill proposes an additional surcharge on every drink sold, allowing the State to raise funds while discouraging excessive drinking behaviors. Specifically, the legislation states that the surcharge will be implemented at a rate of 10 cents per drink for various categories of liquor, with projected revenue estimates suggesting that this could generate approximately $62,700,000 during the surcharge period from 2023 to 2026. This revenue is intended to support initiatives related to public health and safety.
Notably, the bill does face criticism as various stakeholders argue it might unfairly target moderate drinkers while generating minimal impact on heavy consumers who could easily absorb the additional costs. Detractors also raise concerns about the effectiveness of a financial surcharge in changing drinking behavior, questioning whether such approaches can genuinely curb excessive use rather than only increase state revenue. Additionally, there are apprehensions about how funds raised will be allocated and whether they will effectively address the underlying causes of alcohol abuse, such as access to treatment and prevention programs.