No. CS/HB 1137
Deductions for Certain Losses of Alcoholic Beverages; Authorizes distributor of vinous, spirituous, or malt beverages to make excise tax deduction in its monthly tax report for alcoholic beverages that have become unsellable through warehouse breakage, spoliation, evaporation, or expiration or that have become unfit for human consumption; requires distributors that distribute more than one type of alcoholic beverage to deduct their gross taxes for products according to those specified in specified manner; excludes extraordinary losses of vinous, spirituous, or malt beverages from such deductions; authorizes distributor to deduct actual gallonage of extraordinary loss.
Plain English Summary
AI-GENERATEDDistributors can now deduct routine warehouse losses, such as breakage or evaporation, from their monthly excise tax reports. This reduces the tax burden for normal operational waste.
The bill sets specific deduction percentages for wine, spirits, and beer. Distributors must choose their calculation method annually and cannot change it mid-year unless ownership transfers.
Extraordinary losses, like accidents or recalls, are excluded from standard percentage deductions. However, distributors may deduct the actual gallonage of these specific events if they provide proper documentation and proof of destruction.
AIRequires malt distributors to choose annually between a percentage deduction or actual gallonage, locking that choice for the year.
AIProhibits using standard percentage deductions for unusual events like accidents or recalls, forcing a separate reporting process.
AIMandates immediate notification, specific documentation of destruction, and division inspection of remaining inventory for extraordinary losses.