HB535 would create a temporary surcharge on Hawaii’s liquor tax beginning July 1, 2025, and ending June 30, 2028. The bill applies the surcharge to liquor sold in standard drink amounts: 1.5 ounces of distilled spirits, 5 ounces of wine or sparkling wine, and 12 ounces of beer, cooler beverages, or draft beer. The bill does not specify the surcharge amount in the text provided, leaving a blank to be filled in, but it states that the surcharge would be collected in addition to the existing gallonage tax on liquor.
The measure is framed as a public health and revenue bill. Its findings cite alcohol-related deaths, injuries, chronic disease, and other harms associated with excessive alcohol use, as well as substantial state costs tied to health care, lost productivity, and criminal justice. The bill states that surcharge proceeds would be deposited into the general fund and that the existing liquor tax statute would be reenacted after the surcharge sunsets on June 30, 2028.
Impact
HB535 would amend section 244D-4 of the Hawaii Revised Statutes to add a temporary surcharge to the state liquor tax system for a three-year period. It would affect liquor sellers and users subject to the tax, while preserving existing exemptions for certain transactions, including sacramental use and alcohol sold for non-beverage purposes under existing law. After the sunset date, the bill would repeal the surcharge provision and restore the prior version of the statute.
Sentiment
The bill’s framing suggests generally supportive sentiment around using taxation to address alcohol-related harms and generate state revenue. The findings emphasize public health costs and the relatively small per-person cost of the surcharge, indicating the measure is intended to be seen as modest for most consumers while targeting heavier drinkers more directly. No committee transcript or recorded votes were provided, so there is no documented opposition or support beyond the bill text itself.
Contention
The main potential point of contention is the policy choice to raise the cost of alcohol through a surcharge, which may be viewed by opponents as a tax increase on consumers and businesses in the liquor industry. Supporters are likely to emphasize public health benefits, reduced excessive drinking, and new general fund revenue. Because the bill text leaves the surcharge amount blank, the exact fiscal and consumer impact is unresolved in the version provided, which could also be a point of legislative negotiation.
A resolution to direct the Clerk of the House of Representatives to only present to the Governor enrolled House bills finally passed by both houses of the One Hundred Third Legislature.
Relating to nonsubstantive additions to, revisions of, and corrections in enacted codes, to the nonsubstantive codification or disposition of various laws omitted from enacted codes, and to conforming codifications enacted by the 88th Legislature to other Acts of that legislature.