FloridaFlorida alcohol distributors can deduct taxes for unsellable drinks
Florida alcohol distributors can claim tax deductions for unsellable drinks, including documented unusual losses, under rules applying retroactively to January 1, 2025.
What it does
Distributors can claim tax deductions for unsellable alcohol. Wine and liquor use fixed percentages; malt drinks allow an annual choice between a fixed percentage and actual breakage or spoilage.
Distributors can deduct qualifying unusual losses separately. They must immediately report the loss, prove what happened and how the drinks were disposed of, and show the tax was not repaid elsewhere.
Argument forDeductions could reduce the alcohol taxes distributors pay on stock they cannot sell, including drinks lost in documented shipping accidents.
Argument againstProving unusual losses, documenting disposal, and showing taxes were not repaid elsewhere could add paperwork for distributors seeking deductions.
More detail
Alcohol distributors may claim deductions against alcohol taxes due on their monthly reports. The deductions cover wine, liquor, and malt drinks that cannot be sold because of warehouse breakage, spoilage, evaporation, expiration, or being unfit to drink. Deductions equal 0.49 percent of gross wine taxes and 0.15 percent of gross liquor taxes. For malt drinks, distributors may use 0.20 percent of gross taxes or actual breakage or spoilage. Distributors handling multiple drink types must use the deduction for each type. The malt-drink choice lasts one calendar year unless the license transfers or all stock is sold to a new owner. The law took effect upon becoming law; these rules apply retroactively to January 1, 2025.
Distributors may claim a separate tax deduction based on the actual gallons lost in qualifying unusual losses. Covered losses include unusual natural events not expected to recur, shipping accidents from manufacturers to distributors or distributors to other distributors or retailers, and manufacturer recalls followed by distributor destruction. Distributors must immediately notify the Division of Alcoholic Beverages and Tobacco and prove the loss before recovering or receiving credit for taxes. They must document disposal and prove the tax was not repaid elsewhere. They must provide insurance claims and payment receipts if requested. Routine evaporation, breakage, or spoilage on licensed premises does not qualify merely because it exceeds the standard deductions. The division must inspect remaining undamaged invoiced stock intended for distribution. Distributors must record loss and destruction details on division forms, which the division keeps for three years. These deduction rules apply retroactively to January 1, 2025.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 22Chapter No. 2026-41Latest
- Apr 21Approved by Governor Ron DeSantisBecame Law
- Apr 21Signed by Officers and presented to GovernorTo Governor
- Feb 26Ordered enrolledMinor
- Vote recorded Third Reading. Result: pass.Upper
- Feb 26In Messages
- Feb 26Immediately certified
- Feb 26CS passed; YEAS 37 NAYS 0Passed Senate
- Feb 26Read 3rd timeMinor
- Feb 26Read 2nd timeMinor
- Feb 26Substituted for CS/SB 678
- Feb 26Placed on Calendar, on 2nd reading
- Feb 26Withdrawn from RulesMajor
- Feb 25ReceivedMinor
- Vote recorded Passage, Third Reading. Result: pass.Lower
- Feb 25Referred to RulesMinor
- Feb 25In Messages
- Feb 25CS passed; YEAS 116, NAYS 0Passed House
- Feb 25Read 3rd timeMinor
- Feb 25Added to Third Reading Calendar
- Feb 25Read 2nd timeMinor
- Feb 19Bill added to Special Order Calendar (2/25/2026)
- Feb 11Added to Second Reading Calendar
- Feb 11Bill released to House Calendar
- Feb 11Reported out of Commerce Committee
- Feb 10Favorable by Commerce CommitteeMinor
- Vote recorded Favorable (Commerce Committee). Result: pass.Lower
- Feb 6Added to Commerce Committee agenda
- Feb 5Now in Commerce Committee
- Vote recorded Favorable (Industries & Professional Activities Subcommittee). Result: pass.Lower
- Feb 5Reported out of Industries & Professional Activities Subcommittee
- Feb 5Favorable by Industries & Professional Activities SubcommitteeMinor
- Feb 3Added to Industries & Professional Activities Subcommittee agenda
- Jan 281st Reading (Committee Substitute 1)Minor
- Jan 28Now in Industries & Professional Activities Subcommittee
- Jan 28Referred to Commerce CommitteeMinor
- Jan 28Referred to Industries & Professional Activities SubcommitteeMinor
- Jan 27CS FiledMinor
- Vote recorded Favorable With Amendment(s) (Ways & Means Committee). Result: pass.Lower
- Jan 27Laid on Table under Rule 7.18(a)Minor
- Jan 27Reported out of Ways & Means Committee
- Jan 27Favorable with CS by Ways & Means CommitteeMinor
- Jan 23PCS added to Ways & Means Committee agenda
- Jan 22
- Vote recorded Temporarily Postponed (Ways & Means Committee). Result: pass.Lower
- Jan 20Added to Ways & Means Committee agenda
- Jan 131st Reading (Original Filed Version)Minor
- Jan 12Now in Ways & Means Committee
- Jan 12Referred to Commerce CommitteeMinor
- Jan 12Referred to Industries & Professional Activities SubcommitteeMinor
- Jan 12Referred to Ways & Means CommitteeMinor
- Jan 7FiledIntroduced
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