USA, HI: New bill intends to slash beer taxes by more than half

Hawaii residents may be more incentivized to patron the many new breweries opening in Honolulu if a bill to cut beer taxes passes during the next legislative session, the Pacific Business News reported on September 26.

Hawaii Rep. Kaniela Ing will introduce the bill, which would slash taxes that Hawaii residents pay for beer by more than half, from 93 cents per gallon to 42 cents per gallon.

In a statement on September 25, Ing said the goal of the bill is not to encourage drinking, but to level out the taxes between beer and wine or spirits.

“While it may appear that beer is taxed at a lower rate per gallon when compared to wine or spirits, if you break down the amount of alcohol per average gallon of beer versus wine or spirits, beer drinkers are taxed at a much higher rate,” Ing said in a statement, adding that the proposal is a matter of class fairness.

“Working people tend to drink beer more often than other types of alcoholic beverages. But today they are taxed more per ounce of alcohol than someone drinking wine,” Ing said. When you look at it that way, the current system is incredibly unjust.”

Ing believes this proposal will help bolster small businesses in Hawaii, and support the growing local beer industry.

“Hawaii’s beer industry is growing and has resulted in hundreds of new jobs, diversified tourism, and a stronger economy,” Ing said. “If you look at other states, this local industry has a lot of room to grow. We should encourage the growth of local business to allow them to compete in the national marketplace.”