Florida Administrative Code › 61 - DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION › 61A - Division of Alcoholic Beverages and Tobacco › Chapter 61A-4 - MANUFACTURERS AND DISTRIBUTORS › Section 61A-4.0371 - Excise Tax Deduction for Breakage and Spoilage of Alcoholic Beverages

Current through Reg. 50, No. 138; July 16, 2024
(1) Distributors which distribute malt,
				vinous, and spirituous beverages shall make an excise tax deduction in their
				monthly tax report for alcoholic beverages which have become unsaleable through
				warehouse breakage, spoilage, evaporation, expiration, or which have become
				unfit for human consumption in an amount equal to .49 percent of gross tax for
				vinous sales; .15 percent of gross tax for spirituous beverage sales; and .20
				percent of gross tax for malt beverage sales or the actual breakage or spoilage
				destruction witnessed and documented by the division employee or other
				authorized person. The method of breakage for malt beverages (percentage or
				actual) must be elected annually and will be effective for 1 year unless the
				license is transferred or 100 percent of the stock is sold to a new owner.
				Distributors who engage in the sale of more than one type of alcoholic beverage
				shall utilize the provisions of this subsection for all sales of malt, wine,
				and liquor products.
(2) However,
				extraordinary losses, as defined hereafter in this subsection, of malt, vinous,
				and spirituous alcoholic beverages shall be excluded from the standard rates
				applied in subsection (1) above. Extraordinary losses of alcoholic beverages
				shall constitute unusual losses which are not expected to recur resulting from
				acts of God or nature, and accidents which occur during interstate or
				intrastate shipment from manufacturers to distributors, from distributor to
				distributor, and from distributor to retailer, or products recalled by
				manufacturers and destroyed by the distributor. Extraordinary losses shall not
				include losses from evaporation, breakage, or spoilage incurred on the licensed
				premises in the normal course of business which merely exceed the standard
				deductions referenced in subsection (1). The distributor shall notify the
				division immediately upon the occurrence of an extraordinary loss of
				merchandise. The actual gallonage of the extraordinary loss shall be deducted
				by the distributor. The distributor shall show proof of the extraordinary loss
				occurrence prior to recovery or crediting of any excise tax due on unsaleable
				alcoholic beverages by either providing a copy of a traffic accident
				investigation or incident report from the investigating agency when the loss
				occurs in transit, or be witnessed by an authorized division employee where the
				loss occurs on the premise of the distributor, or other appropriate
				documentation which clearly and objectively establishes the extraordinary loss.
				The distributor shall show proof of the destruction, dumping or recycling of
				the alcoholic beverages involved in the extraordinary loss occurrence by
				providing a statement to the division from the distributor's employee
				responsible for the destruction or recycling. The statement shall include a
				description of alcoholic beverages, by gallon and tax category, which have been
				destroyed or recycled and a statement as to the location of the extraordinary
				loss occurrence and the location of the site of destruction or
				recycling.
(3) The distributor
				shall notify the division to witness the remaining undamaged, invoiced
				inventory which is utilized by the distributor. The distributor reporting
				extraordinary breakage, spoilage or evaporation shall furnish proof that
				Florida Excise Taxes have not been recovered from any other source. Copies of
				all insurance claims and receipt of payments shall be provided by the
				distributor to the division upon request by the division. The actual gallonage
				of breakage, spoilage, or evaporation of alcoholic beverages shall be recorded
				on form BPR-648A effective January 14, 1987 and incorporated herein by
				reference and will contain the date of product destruction, quantity destroyed
				by tax classification, and a statement signed by the distributor's authorized
				employee or agent that the product was destroyed. A copy of form BPR-648A may
				be obtained by writing to the Department of Business and Professional
				Regulation, Division of Alcoholic Beverages and Tobacco, 2601 Blair Stone Road,
				Tallahassee, Florida 32399-1022. All completed forms shall be maintained for a
				period of 3 years.
Rulemaking Authority
					 561.11 FS. Law Implemented
					 561.55(1),
					 563.05,
					 564.06,
					 565.12
					 FS.
New 3-1-76, Formerly 7A-4.371, Amended 7-1-87, Formerly
					 7A-4.0371, Amended 2-24-94.