April 26, 1996

DEPARTMENT OF TAXATION ANNOUNCEMENT

RE: INCREASE IN THE LIQUOR TAX RATES
Effective for sales or use of liquor after June 30, 1995, Act 89, Session Laws of Hawaii 1994, increases the liquor tax rates each fiscal year from July 1, 1995, to July 1, 1998, for the 6 liquor categories.

For the period beginning July 1, 1996, to June 30, 1997, the tax rate shall be:
 

Liquor Categories Tax Rate Per Wine Gallon
Distilled spirits $5.87
Sparkling wine $2.06
Still Wine $1.34
Cooler beverages $0.83
Beer, other than draft beer $0.91
Draft beer $0.52

For the period beginning July 1, 1997, to June 30, 1998, the tax rate shall be:
 

Liquor Categories Tax Rate Per Wine Gallon
Distilled spirits $5.92
Sparkling wine $2.09
Still Wine $1.36
Cooler beverages $0.84
Beer, other than draft beer $0.92
Draft beer $0.53

For the period beginning July 1, 1998, and thereafter, the tax rate shall be:
 

Liquor Categories Tax Rate Per Wine Gallon
Distilled spirits $5.98
Sparkling wine $2.12
Still Wine $1.38
Cooler beverages $0.85
Beer, other than draft beer $0.93
Draft beer $0.54

The Department of Taxation will be revising Form M-18 to incorporate the imposition of the new liquor tax rates. The Form M-18 (Rev. 1996) must be used to report the sale or use of liquor after June 30, 1996. Each year thereafter the appropriate Form M-18 must be used to reflect the correct liquor tax imposed for the particular filing period.
 
 

/s/
RAY K. KAMIKAWA
Director of Taxation