STAND. COM. REP. NO.  524-10

Honolulu, Hawaii

                , 2010

RE:   H.B. No. 2850

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2850 entitled:

"A BILL FOR AN ACT RELATING TO THE LIQUOR TAX,"

begs leave to report as follows:

     The purpose of this bill is to temporarily increase the liquor tax rates during the period from July 1, 2010, to June 30, 2015.

     The Distilled Spirits Council of the United States, Anheuser Busch Companies, Hawaii Liquor Wholesalers Association, Wine Institute, and Kona Brewing Company testified in opposition to this bill.  The Tax Foundation of Hawaii submitted comments.

     Your Committee has amended this bill by:

     (1)  Blanking out the tax amounts;

     (2)  Changing the effective date to July 1, 2020, to facilitate further discussion; and

     (3)  Making technical, nonsubstantive amendments for purposes of consistency, clarity, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2850, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2850, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair