The bill also addresses the taxation scheme for small breweries, recognizing that the current tax rates can be overly burdensome for these smaller operators compared to larger brewing companies. It proposes a separate, more equitable tax rate specifically for qualified small brewers, which is intended to support the sustainability and growth of these businesses. The proposed tax structure will allow smaller brewers to have a lower financial burden, thereby promoting a more vigorous market for craft beers.
Summary
SB2096, relating to intoxicating liquor, aims to amend the definition of 'cooler beverage' in Hawaiian law to include spirits-based drinks. This change is intended to encourage local distilleries to diversify their offerings by producing ready-to-drink cocktails that contain distilled spirits. Previously, only wine-based and beer-based beverages were classified under the cooler beverage category, which contributed to a disparity in taxation against local distilleries that create mixed spirit-based products. By updating the legal definition, the bill seeks to create a more inclusive framework for these products.
Contention
Some potential points of contention regarding SB2096 may revolve around the implications of changing the alcohol tax structure and its impact on revenue generation for the state. Opponents of the bill may argue that reducing taxes for small brewers could lead to decreased state revenue or criticism over the management of alcohol regulations in light of public health concerns. Additionally, the inclusion of spirits in the cooler beverage category might raise concerns regarding the potential increase in consumption of these products and the consequent outcomes on public health and safety.