Florida Senate - 2026                        COMMITTEE AMENDMENT
       Bill No. SB 678
       
       
       
       
       
       
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                              LEGISLATIVE ACTION                        
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       The Committee on Regulated Industries (Mayfield) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 561.1215, Florida Statutes, is created
    6  to read:
    7         561.1215 Deductions for breakage, spoliation, evaporation,
    8  expiration, and extraordinary losses.—
    9         (1)(a) Distributors of vinous, spirituous, or malt
   10  beverages may make deductions against any excise tax due under
   11  s. 563.05, s. 564.06, or s. 565.12 on their monthly tax report
   12  for alcoholic beverages that have become unsellable through
   13  warehouse breakage, spoliation, evaporation, or expiration or
   14  that have become unfit for human consumption, in an amount equal
   15  to the following:
   16         1. For vinous sales, 0.49 percent of gross tax.
   17         2. For spirituous beverage sales, 0.15 percent of gross
   18  tax.
   19         3. For malt beverage sales, 0.20 percent of gross tax or
   20  the actual breakage or spoliation.
   21         (b) The method of determining breakage for malt beverages,
   22  either percentage or actual gallonage, must be elected annually
   23  and will be effective for 1 calendar year unless the license is
   24  transferred or 100 percent of the stock is sold to a new owner.
   25         (c) Distributors that distribute more than one type of
   26  alcoholic beverage shall deduct the gross taxes for their
   27  products as prescribed in this subsection for vinous,
   28  spirituous, or malt beverages.
   29         (2)(a) Extraordinary losses of vinous, spirituous, or malt
   30  beverages are excluded from the deductions in subsection (1).
   31  For purposes of this section, the term “extraordinary loss”
   32  means an unusual loss resulting from acts of God or nature which
   33  are not expected to recur; accidents that occur during
   34  interstate or intrastate shipment from manufacturer to
   35  distributor, from distributor to distributor, or from
   36  distributor to retailer; or products being recalled by a
   37  manufacturer and destroyed by a distributor. The term does not
   38  include a loss from evaporation, breakage, or spoliation
   39  incurred on the licensed premises in the normal course of
   40  business which exceeds the standard deductions prescribed in
   41  subsection (1).
   42         (b) A distributor shall immediately notify the division
   43  when an extraordinary loss occurs. A distributor may deduct the
   44  actual gallonage of the extraordinary loss. The distributor
   45  shall show proof of the extraordinary loss before recovering or
   46  crediting any excise tax due to the unsalable alcoholic
   47  beverages by:
   48         1. Providing a copy of a traffic accident investigation
   49  report or an incident report from the investigating agency when
   50  the loss occurs in transit;
   51         2. Having the extraordinary loss witnessed or documented by
   52  an authorized division employee when the extraordinary loss
   53  occurs on the premises of the distributor; or
   54         3. Clearly and objectively establishing the extraordinary
   55  loss through appropriate documentation as determined by the
   56  division.
   57         (c) The distributor shall show proof of the destruction,
   58  dumping, or recycling of the alcoholic beverages involved in the
   59  extraordinary loss by providing a statement to the division from
   60  the distributor, or the distributor’s authorized employee or
   61  agent, evidencing such destruction, dumping, or recycling. The
   62  statement must include a description of the location of the
   63  extraordinary loss; the alcoholic beverages, by gallonage and
   64  tax category, which have been destroyed, dumped, or recycled;
   65  and the location of the site where the alcoholic beverages were
   66  destroyed, dumped, or recycled.
   67         (3)(a) Upon notification by a distributor, the division
   68  shall inspect any remaining undamaged invoiced inventory
   69  intended to be distributed.
   70         (b)1. A distributor reporting extraordinary losses must
   71  furnish proof that the excise tax has not been recovered from
   72  any other source. The distributor shall provide the division
   73  with copies of all insurance claims and receipts of payment upon
   74  request by the division.
   75         2. The distributor shall record on forms prescribed by the
   76  division the actual gallonage of breakage, spoliation, or
   77  evaporation of alcoholic beverages; the date of product
   78  destruction; the quantity destroyed, by tax classification; and
   79  a statement signed by the distributor, or the distributor’s
   80  authorized employee or agent, that the product was destroyed.
   81         3. The division shall retain all completed forms for 3
   82  years.
   83         (4) The division may adopt rules and forms to implement
   84  this section.
   85         (5) This section applies retroactively to January 1, 2025.
   86         Section 2. This act shall take effect upon becoming a law.
   87  
   88  ================= T I T L E  A M E N D M E N T ================
   89  And the title is amended as follows:
   90         Delete everything before the enacting clause
   91  and insert:
   92                        A bill to be entitled                      
   93         An act relating to deductions for certain losses of
   94         alcoholic beverages; creating s. 561.1215, F.S.;
   95         authorizing a distributor of vinous, spirituous, or
   96         malt beverages to make an excise tax deduction in its
   97         monthly tax report for alcoholic beverages that have
   98         become unsalable through warehouse breakage,
   99         spoliation, evaporation, or expiration or that have
  100         become unfit for human consumption; specifying the
  101         percentage a distributor may deduct for such alcoholic
  102         beverages; requiring that the method of determining
  103         breakage for malt beverages be elected annually;
  104         providing that the method is effective for a specified
  105         timeframe; providing an exception; requiring
  106         distributors that distribute more than one type of
  107         alcoholic beverage to deduct their gross taxes for
  108         products according to those specified in a specified
  109         manner; excluding extraordinary losses of vinous,
  110         spirituous, or malt beverages from such deductions;
  111         defining the term “extraordinary loss”; requiring a
  112         distributor to immediately notify the Division of
  113         Alcoholic Beverages and Tobacco when an extraordinary
  114         loss occurs; authorizing a distributor to deduct the
  115         actual gallonage of the extraordinary loss; requiring
  116         such distributors to show proof of the extraordinary
  117         loss before recovering or crediting any excise tax due
  118         to the unsalable alcoholic beverages; specifying the
  119         manner in which a distributor may show such proof;
  120         requiring a distributor to show proof of the
  121         destruction, dumping, or recycling of the alcoholic
  122         beverages involved in the extraordinary loss;
  123         specifying the manner in which to show such proof;
  124         requiring the division to inspect any remaining
  125         undamaged invoiced inventory intended to be
  126         distributed upon being notified by the distributor;
  127         requiring a distributor reporting extraordinary losses
  128         to furnish proof that the excise tax has not been
  129         recovered from any other source; requiring the
  130         distributor to provide the division with copies of all
  131         insurance claims and receipts of payment upon request;
  132         requiring distributors to record certain information
  133         on forms prescribed by the division; requiring the
  134         division to retain such forms for a specified
  135         timeframe; authorizing the division to adopt rules and
  136         forms; providing retroactive application; providing an
  137         effective date.