HB 1991 Hawaii House · 2026 Regular Session

RELATING TO THE LIQUOR TAX.

HB 1991 changes how liquor taxes are calculated by replacing the current system of tax categories (based on drink type, like beer or wine) with tax rates based solely on alcohol-by-volume (ABV) content. This directly affects liquor businesses that sell alcoholic beverages, as they will pay taxes according to the ABV percentage of their products instead of their category. The bill also automatically adjusts tax rates annually to account for inflation, ensuring the rates keep pace with economic changes. These changes simplify the tax structure and update it to reflect modern beverage standards.

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Mar 2026

House Passage

Mar 2026

Senate Passage

Governor

Introduced Jan 23, 2026 Last action Mar 12, 2026

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What changed between versions

HB1991_HD1 → HB1991_HD2 · 4 edits

MODERATE

This bill updates the Hawaii liquor tax structure and extends the current tax rate schedule through June 30, 2026, replacing the previous open-ended 'and thereafter' clause. It introduces new tax brackets based on alcohol content, creating specific rates for beverages ranging from 0.5% to over 40% ABV. The changes also adjust the effective date notation and update administrative metadata.

Scope change

The bill expands the scope of the tax rate schedule by adding specific time limits and introducing new tax categories based on alcohol concentration levels that did not exist in the previous version.

TIMELINE

Changed the tax rate schedule duration from an indefinite period starting July 1, 1998, to a fixed period ending June 30, 2026.

REQUIREMENT

Added new tax brackets for beverages with specific alcohol-by-volume ranges (0.5-10%, 10-15%, 15-40%, and over 40%).

ELIGIBILITY

Modified the tax rate for small craft producer pub licensees to a fixed 75 cents per gallon for low-alcohol beverages.

DEFINITION

Adjusted the definition of 'liquor' to clarify the inclusion of alcohol-by-volume categories taxed under specific sections.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 12, 2026

Committee

Referred to EDT/CPN, WAM.

upper

Mar 12, 2026

Introduced

Received from House (Hse. Com. No. 337).

upper

Mar 10, 2026

Lower · Passed

Passed Third Reading as amended in HD 2 with Representative(s) Amato voting aye with reservations; Representative(s) Alcos, Garcia, Gedeon, Iwamoto, Kong, Matsumoto, Reyes Oda voting no (7) and Representative(s) Pierick excused (1). Transmitted to Senate.

lower

Mar 2, 2026

Lower · Passed

The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 14 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita; Ayes with reservations: Representative(s) Gedeon; 1 Noes: Representative(s) Reyes Oda; and 1 Excused: Representative(s) Alcos.

lower

Feb 12, 2026

Committee

Reported from CPC (Stand. Com. Rep. No. 237-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN.

lower

Feb 3, 2026

Lower · Passed

The committee on CPC recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 10 Ayes: Representative(s) Matayoshi, Grandinetti, Chun, Ilagan, Ichiyama, Lowen, Marten, Tam, Pierick; Ayes with reservations: Representative(s) Iwamoto; Noes: none; and 1 Excused: Representative(s) Kong.

lower

Jan 28, 2026

Committee

Referred to CPC, FIN, referral sheet 3

lower

Jan 26, 2026

Introduced

Introduced and Pass First Reading.

lower

Jan 23, 2026

Introduced

Pending introduction.

lower

10 primary · 1 co-sponsor