SB978

Hawaii SB978 amends the definition of "draft beer" to lower the tax rate for smaller kegs.

Hawaii SB978 seeks to amend the definition of "draft beer" in the Hawaii Revised Statutes to address a discrepancy in the taxation scheme. Currently, draft beer is defined as beer in an individual container of seven gallons or more, which does not align with industry practices where smaller kegs are commonly used. The bill proposes to redefine "draft beer" as beer in an individual container of five gallons or more, thereby applying a lower tax rate to these smaller kegs. This change aims to make the taxation scheme less confusing, burdensome, and discriminatory.