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THE SENATE |
S.B. NO. |
2238 |
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TWENTY-FIFTH LEGISLATURE, 2010 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to general excise taxes on sweetened beverages.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Adult Americans have often struggled with weight gain, unhealthy eating and drinking, and at curbing their desire to consume sweetened beverages for many decades. Consequently, according to an article in Forbes Magazine, that has led to the United States being the ninth most obese country in the world for adults aged fifteen years and older.
According to statistics from the sixth annual F as in Fat: How Obesity Policies are Failing in America, 2009 Report, the rate of adult obesity, which is typically defined as a person having a body mass index score of thirty or more, in the United States has surpassed twenty-five per cent in thirty-one states and exceeded twenty per cent in forty-nine states. This compares to no states having an adult obesity rate above twenty per cent as recently as 1991.
In examining the change in drinking habits that have occurred in the United States since 1991, there has been an explosion of sweetened beverages onto the market that are available for American consumers. Sweetened beverages include harmful or unhealthy additives or ingredients that include, but are not limited to, processed sugar, high fructose corn syrup, dextrose, aspartame, sucralose, molasses, or honey. These sweetened beverages include almost all colas, sports drinks, such as Gatorade and Powerade, and energy drinks, such as Red Bull and Monster, which have become a staple in the liquid consumption of American adults and children of very young ages.
The purpose of this Act is to attempt to deter the purchase of sweetened beverages through tax reform. Specifically, to adopt tax reform that would require an additional imposition of general excise tax on purchases of sweetened beverages.
SECTION 2. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§237- Additional imposition of tax. (a) Upon every person engaging or continuing within the State in the business of selling sweetened beverages, there is hereby levied and shall be assessed and collected the following privilege taxes:
(1) A rate equal to per cent of the gross proceeds on the sale of sweetened beverages that are less than or equal to gallon; and
(2) A rate equal to per cent of the gross proceeds on the sale of sweetened beverages that are more than gallon;
provided that the rate of privilege taxes levied, assessed, and collected under this section are in addition to the privilege taxes levied, assessed, and collected under section 237-13 and the county surcharge on state tax that is levied, assessed, and collected under section 237-8.6.
(b) For purposes of this section:
"Energy drinks" means a beverage designed to increase a user's mental alertness and physical performance by the addition of caffeine, vitamins, and herbal supplements that interact in a manner that stimulates the user's energy level.
"Sports drinks" means a beverage designed to enhance rehydration, as well as restore electrolytes, carbohydrates, and other nutrients which are depleted after training or competition.
"Sweetened beverages" means any nonalcoholic beverage containing processed sugar, high fructose corn syrup, dextrose, aspartame, sucralose, molasses, or honey that is sold for human consumption. "Sweetened beverages" includes, but is not limited to, soda, juices containing less than one hundred per cent fruit juice, sports drinks, energy drinks, and flavored teas. "Sweetened beverages" does not include water, milk, coffee, and drinks that are labeled as one hundred per cent fruit juice.
(c) All revenues collected pursuant to this section shall be remitted to the department of education and deposited to the credit of programs that fund K-12 education."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on January 1, 2011.
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INTRODUCED BY: |
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Report Title:
General Excise Tax; Sweetened Beverages
Description:
Levies, assesses, and collects an additional imposition of general excise tax on sweetened beverages that is in addition to the existing 4% rate and the county surcharge of .5%. Requires the additional revenues to be remitted to the department of education and deposited to the credit of programs that fund K-12 education.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.