SB 678 — Deductions for Certain Losses of Alcoholic Beverages

Florida Senate - 2026 CS for SB 678 By Senatorthe MayfieldCommittee 19-01400-26on 2026678__Regulated AIndustries; bill to be entitled An act relating to deductions for certain losses of alcoholic beverages;

and Senators Mayfield and Gaetz 580-02027-26 2026678c1 A bill to be entitled An act relating to deductions for certain losses of alcoholic beverages;

authorizing deductionsa againstdistributor of vinous, spirituous, or malt beverages to make an excise taxestax deduction in its monthly tax report for alcoholic beverages ifthat theyhave arebecome unsalable;unsellable through warehouse breakage, spoliation, evaporation, or expiration or that have become unfit for human consumption;

authorizing a distributor of vinous, spirituous, or malted beverages to make an excise tax deduction in its monthly tax report for alcoholic beverages that have become unsalable through warehouse breakage, spoliation, evaporation, or expiration or that have become unfit for human consumption;

requiring that breakage or spoliation be documented by an employee of the Divisionmethod of Alcoholicdetermining Beveragesbreakage andfor Tobaccomalt orbeverages otherbe authorizedelected person;annually;

requiring that the method of breakage for malt beverages be elected annually;

requiring distributors that distribute more than one type of alcoholic beverage to deduct their gross taxes for products according to those specified forin vinous,a spirituous,specified ormanner; malt beverages;

requiring a distributor to immediately notify the divisionDivision of Alcoholic Beverages and Tobacco when an extraordinary loss occurs;

requiring such distributors to show proof of the Pageextraordinary 1loss ofbefore 5recovering CODING:or crediting any excise tax due to the unsellable alcoholic beverages;

specifying the manner in which a distributor may show such proof;

requiring a distributor to show proof of the Page 1 of 5 CODING:

Florida Senate - 2026 CS for SB 678 19-01400-26580-02027-26 2026678__2026678c1 extraordinarydestruction, lossdumping, before recovering or creditingrecycling anyof excisethe taxalcoholic duebeverages toinvolved in the unsalableextraordinary alcoholicloss; beverages;

specifying the manner in which a distributor may show such proof;

requiring a distributor to show proof of the destruction, dumping, or recycling of the alcoholic beverages involved in the extraordinary loss;

requiring a distributor reporting an extraordinary losslosses to furnish proof that the excise tax has not been recovered from any other source;

authorizing the division to adopt rules;rules and forms;

providing retroactive application;

561.1215 Deductions for breakage, spoliation, evaporation, expiration, and extraordinary losses.— (1)(a) DeductionsDistributors of vinous, spirituous, or malt beverages may make deductions against any excise tax due under s.

565.12 areon allowedtheir monthly tax report for unsalablealcoholic beverages that have become unsellable through warehouse breakage, spoliation, evaporation, or expiration or Page 2 of 5 CODING:

Florida Senate - 2026 CS for SB 678 19-01400-26580-02027-26 2026678__2026678c1 alcoholicthat beverages.have become unfit for human consumption, in an amount equal to the following:

Distributors of vinous, spirituous, or malted beverages may make an excise tax deduction to their monthly tax report for alcoholic beverages that have become unsalable through warehouse breakage, spoliation, evaporation, or expiration or that have become unfit for human consumption in an amount equal to the following:

For vinous beverage sales, 0.49 percent of gross tax.

(b) SuchThe method of determining breakage for malt beverages, either percentage or spoliationactual gallonage, must be documentedelected byannually anand employeewill ofbe effective for 1 calendar year unless the divisionlicense is transferred or other100 authorizedpercent person.of the stock is sold to a new owner.

(c) TheDistributors methodthat ofdistribute determiningmore breakagethan forone malttype beverages,of eitheralcoholic percentagebeverage orshall actualdeduct gallonage,the mustgross betaxes electedfor annuallytheir andproducts willas beprescribed effectivein forthis 1subsection calendarfor yearvinous, unlessspirituous, the license is transferred or 100malt percentbeverages. of the stock is sold to a new owner.

(d) Distributors that distribute more than one type of alcoholic beverage shall deduct the gross taxes for their products as prescribed in this subsection for vinous, spirituous, or malt beverages.

or products being recalled by a Pagemanufacturer 3and ofdestroyed 5by CODING:a distributor.

The term does not include a loss from evaporation, breakage, or spoliation incurred on the licensed premises in the normal course of business which exceeds the standard deductions prescribed in subsection (1).

(b) A distributor shall immediately notify the division Page 3 of 5 CODING:

Florida Senate - 2026 CS for SB 678 19-01400-26580-02027-26 2026678__2026678c1 manufacturerwhen andan destroyedextraordinary byloss aoccurs. distributor.

The term does not include a loss from evaporation, breakage, or spoliation incurred on the licensed premises in the normal course of business which exceeds the standard deductions prescribed in subsection (1).

(b) A distributor shall immediately notify the division when an extraordinary loss occurs.

The distributor shall show proof of the extraordinary loss before recovering or crediting any excise tax due to the unsalableunsellable alcoholic beverages by:

and the location of the site where the alcoholic beverages were Pagedestroyed, 4dumped, ofor 5recycled. CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2026 SB 678 19-01400-26 2026678__ destroyed, dumped, or recycled.

A distributor reporting extraordinary losses must furnish proof that the excise tax has not been recovered from anyPage other4 source.of 5 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2026 CS for SB 678 580-02027-26 2026678c1 any other source.