The proposed surcharge would amount to a 5 to 10 cent increase per drink based on standard measures of liquor, promising projected revenues that could range between $32 million to $62.7 million over the three-year period. The surcharge is expected to only minimally affect moderate drinkers, with excessive drinkers estimated to pay about $27 annually due to the increase. Conversely, individuals who abstain from alcohol would incur no costs. This approach aims to raise funds while also potentially discouraging excessive drinking through economic disincentives.
House Bill 2589 proposes a three-year surcharge on the existing liquor tax in Hawaii as a measure to generate additional revenue and address public health concerns related to excessive alcohol consumption. The bill highlights that alcohol-related deaths in Hawaii average approximately 384 per year, with 90% linked to excessive alcohol use, including binge and heavy drinking behaviors. The legislature underscores the various health risks associated with excessive alcohol consumption, which not only impact individual health but also incur significant economic costs to the state, including healthcare and criminal justice expenses.
While the bill aims to improve public health and generate revenue, it may also face opposition from sectors concerned about the economic impact on businesses, particularly those in the hospitality industry. Critics may argue that imposing additional taxes could deter consumers or unfairly penalize responsible drinkers while seeking to address broader public health challenges. Additionally, the temporary nature of the surcharge, set to expire on June 30, 2027, means it may be viewed by some as a stopgap rather than a comprehensive solution to alcohol-related issues.