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This section contains the nature of the case and procedural background.

All alcoholic beverages manufactured in Hawaii were subject to taxation under Hawaii's Liquor Tax Act. This tax was imposed to absorb increasing public service expenses precipitated by the consumption of liquor (such as increased police, medical, and social service interventions). However, this tax was inapplicable to fruit wine during 1976 through 1981 and 'okolehao' liquor during 1971 through 1981. Bacchus Imports, a liquor wholesaler, along with another wholesaler, sued Hawaii to recover taxes it paid under both the Liquor Tax Act and another state statute. The requested damages totaled $45 million. This sum represented 20% in excise taxes and an additional .50% of unspecified state tax paid during the years in question. Apparently, this sum included taxes the wholesalers had already passed onto consumer-retailers through increased purchase prices. The Petitioner contended that the Hawaii statute violated the Import-Export Clause and Commerce Clause of the United States Constitution. The Tax Appeal Court held in favor of the state. The Hawaii Supreme Court affirmed. The U.S. Supreme Court reversed in favor of the Petitioner.

The court's holding and decision will be displayed here.

Legal analysis from Dean's Law Dictionary will be displayed here.