THE BILL ITSELF
CS/HB 1137
Deductions for Certain Losses of Alcoholic Beverages
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An act relating to deductions for certain losses of
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alcoholic beverages; creating s. 561.1215, F.S.;
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authorizing a distributor of vinous, spirituous, or
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malt beverages to make an excise tax deduction in its
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monthly tax report for alcoholic beverages that have
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become unsellable through warehouse breakage,
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spoliation, evaporation, or expiration or that have
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become unfit for human consumption; specifying the
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percentage a distributor may deduct for such alcoholic
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beverages; requiring that the method of determining
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breakage for malt beverages be elected annually;
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providing that the method is effective for a specified
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timeframe; providing an exception; requiring
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distributors that distribute more than one type of
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alcoholic beverage to deduct their gross taxes for
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products according to those specified in a specified
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manner; excluding extraordinary losses of vinous,
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spirituous, or malt beverages from such deductions;
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defining the term "extraordinary loss"; requiring a
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distributor to immediately notify the Division of
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Alcoholic Beverages and Tobacco when an extraordinary
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loss occurs; authorizing a distributor to deduct the
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actual gallonage of the extraordinary loss; requiring
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such distributors to show proof of the extraordinary
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loss before recovering or crediting any excise tax due
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to the unsellable alcoholic beverages; specifying the
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manner in which a distributor may show such proof;
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requiring a distributor to show proof of the
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destruction, dumping, or recycling of the alcoholic
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beverages involved in the extraordinary loss;
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specifying the manner in which to show such proof;
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requiring the division to inspect any remaining
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undamaged invoiced inventory intended to be
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distributed upon being notified by the distributor;
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requiring a distributor reporting extraordinary losses
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to furnish proof that the excise tax has not been
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recovered from any other source; requiring the
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distributor to provide the division with copies of all
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insurance claims and receipts of payment upon request;
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requiring distributors to record certain information
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on forms prescribed by the division; requiring the
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division to retain such forms for a specified
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timeframe; authorizing the division to adopt rules and
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forms; providing retroactive application; providing an
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effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Section 561.1215, Florida Statutes, is created
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to read:
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561.1215 Deductions for breakage, spoliation, evaporation,
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expiration, and extraordinary losses.—
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(1)(a) Distributors of vinous, spirituous, or malt
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beverages may make deductions against any excise tax due under
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s. 563.05, s. 564.06, or s. 565.12 on their monthly tax report
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for alcoholic beverages that have become unsellable through
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warehouse breakage, spoliation, evaporation, or expiration or
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that have become unfit for human consumption, in an amount equal
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to the following:
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1. For vinous beverage sales, 0.49 percent of gross tax.
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2. For spirituous beverage sales, 0.15 percent of gross
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tax.
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3. For malt beverage sales, 0.20 percent of gross tax or
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the actual breakage or spoliation.
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(b) The method of determining breakage for malt beverages,
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either percentage or actual gallonage, must be elected annually
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and will be effective for 1 calendar year unless the license is
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transferred or 100 percent of the stock is sold to a new owner.
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(c) Distributors that distribute more than one type of
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alcoholic beverage shall deduct the gross taxes for their
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products as prescribed in this subsection for vinous,
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spirituous, or malt beverages.
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(2)(a) Extraordinary losses of vinous, spirituous, or malt
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beverages are excluded from the deductions in subsection (1).
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For purposes of this section, the term "extraordinary loss"
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means an unusual loss resulting from acts of God or nature which
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are not expected to recur; accidents that occur during
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interstate or intrastate shipment from manufacturer to
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distributor, from distributor to distributor, or from
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distributor to retailer; or products being recalled by a
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manufacturer and destroyed by a distributor. The term does not
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include a loss from evaporation, breakage, or spoliation
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incurred on the licensed premises in the normal course of
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business which exceeds the standard deductions prescribed in
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subsection (1).
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(b) A distributor shall immediately notify the division
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when an extraordinary loss occurs. A distributor may deduct the
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actual gallonage of the extraordinary loss. The distributor
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shall show proof of the extraordinary loss before recovering or
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crediting any excise tax due to the unsellable alcoholic
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beverages by:
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1. Providing a copy of a traffic accident investigation
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report or an incident report from the investigating agency when
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the loss occurs in transit;
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2. Having the extraordinary loss witnessed or documented
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by an authorized division employee when the extraordinary loss
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occurs on the premises of the distributor; or
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3. Clearly and objectively establishing the extraordinary
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loss through appropriate documentation as determined by the
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division.
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(c) The distributor shall show proof of the destruction,
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dumping, or recycling of the alcoholic beverages involved in the
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extraordinary loss by providing a statement to the division from
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the distributor, or the distributor's authorized employee or
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agent, evidencing such destruction, dumping, or recycling. The
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statement must include a description of the location of the
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extraordinary loss; the alcoholic beverages, by gallonage and
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tax category, which have been destroyed, dumped, or recycled;
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and the location of the site where the alcoholic beverages were
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destroyed, dumped, or recycled.
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(3)(a) Upon notification by a distributor, the division
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shall inspect any remaining undamaged invoiced inventory
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intended to be distributed.
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(b)1. A distributor reporting extraordinary losses must
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furnish proof that the excise tax has not been recovered from
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any other source. The distributor shall provide the division
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with copies of all insurance claims and receipts of payment upon
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request by the division.
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2. The distributor shall record on forms prescribed by the
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division the actual gallonage of breakage, spoliation, or
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evaporation of alcoholic beverages; the date of product
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destruction; the quantity destroyed, by tax classification; and
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a statement signed by the distributor, or the distributor's
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authorized employee or agent, that the product was destroyed.
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3. The division shall retain all completed forms for 3
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years.
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(4) The division may adopt rules and forms to implement
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this section.
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(5) This section applies retroactively to January 1, 2025.
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Section 2. This act shall take effect upon becoming a law.