Sin taxes on tap in Hawaii - alcohol tax - Brief Article

Modern Brewery Age, March 8, 2004

Hawaiian beer drinkers would have to pony up an extra 14 cents a six-pack to help raise money to combat the state's crystal methamphetamine, or ice, addiction epidemic under a bill moving in the Hawaii state House.

The bill setting up a Substance Abuse Prevention, Education and Treatment Special Fund recommended by the House Judiciary Committee was given preliminary House approval and is now before the House Finance Committee.

The Tax Department said that adding a 25-cent surcharge to the tax rates on all types of liquor would generate about $9 million in new revenues while a 25-cent surcharge on a pack of cigarettes would generate another $15 million, based on current sales.

The surcharge tax would add 2.3 cents to the current 8.7 cents per bottle tax on beer, or nearly 14 cents more a six-pack. The 25-cent surcharge would also be added to the other types of alcoholic beverages which are taxed per gallon at rates from 54 cents for draft beer to $5.98 for hard liquors like whiskey, rum and vodka.

It represents a 27 percent increase in the tax on beer, but only a 4 percent increase in the tax on distilled spirits.