Read the full stored bill text
ENROLLED
CS/HB 1137 2026 Legislature
CODING: Words stricken are deletions; words underlined are additions.
hb1137 -01-er
Page 1 of 6
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1
An act relating to deductions for certain losses of 2
alcoholic beverages; creating s. 561.1215, F.S.; 3
authorizing a distributor of vinous, spirituous, or 4
malt beverages to make an excise tax deduction in its 5
monthly tax report for alcoholic beverages that have 6
become unsellable through warehouse breakage, 7
spoliation, evaporation, or expiration or that have 8
become unfit for human consumption; specifying the 9
percentage a distributor may deduct for such alcoholic 10
beverages; requiring that the method of determining 11
breakage for malt beverages be elected annually; 12
providing that the method is effective for a specified 13
timeframe; providing an exception; requiring 14
distributors that distribute more than one type of 15
alcoholic beverage to deduct their gross taxes for 16
products according to those specified in a specified 17
manner; excluding extraordinary losses of vinous, 18
spirituous, or malt beverages from such deductions; 19
defining the term "extraordinary loss"; requiring a 20
distributor to immediately notify the Division of 21
Alcoholic Beverages and Tobacco when an extraordinary 22
loss occurs; authorizing a distributor to deduct the 23
actual gallonage of the extraordinary loss; requiring 24
such distributors to show proof of the extraordinary 25
ENROLLED
CS/HB 1137 2026 Legislature
CODING: Words stricken are deletions; words underlined are additions.
hb1137 -01-er
Page 2 of 6
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
loss before recovering or crediting any excise tax due 26
to the unsellable alcoholic beverages; specifying the 27
manner in which a distributor may show such proof; 28
requiring a distributor to show proof of the 29
destruction, dumping, or recycling of the alcoholic 30
beverages involved in the extraordinary loss; 31
specifying the manner in which to show such proof; 32
requiring the division to inspect any remaining 33
undamaged invoiced inventory intended to be 34
distributed upon being notified by the distributor; 35
requiring a distributor reporting extraordinary losses 36
to furnish proof that the excise tax has not been 37
recovered from any other source; requiring the 38
distributor to provide the division with copies of all 39
insurance claims and receipts of payment upon request; 40
requiring distributors to record certain information 41
on forms prescribed by the division; requiring the 42
division to retain such forms for a specified 43
timeframe; authorizing the division to adopt rules and 44
forms; providing retroactive application; providing an 45
effective date. 46
47
Be It Enacted by the Legislature of the State of Florida: 48
49
Section 1. Section 561.1215, Florida Statutes, is created 50
ENROLLED
CS/HB 1137 2026 Legislature
CODING: Words stricken are deletions; words underlined are additions.
hb1137 -01-er
Page 3 of 6
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
to read: 51
561.1215 Deductions for breakage, spoliation, evaporation, 52
expiration, and extraordinary losses.— 53
(1)(a) Distributors of vinous, spirituous, or malt 54
beverages may make deductions against any excise tax due under 55
s. 563.05, s. 564.06, or s. 565.12 on their monthly tax report 56
for alcoholic beverages that have become unsellable through 57
warehouse breakage, spoliation, evaporation, or expiration or 58
that have become unfit for human consumption, in an amount equal 59
to the following: 60
1. For vinous beverage sales, 0.49 percent of gross tax. 61
2. For spirituous beverage sales, 0.15 percent of gross 62
tax. 63
3. For malt beverage sales, 0.20 percent of gross tax or 64
the actual breakage or spoliation. 65
(b) The method of determining breakage for malt beverages, 66
either percentage or actual gallonage, must be elected annually 67
and will be effective for 1 calendar year unless the license is 68
transferred or 100 percent of the stock is sold to a new owner. 69
(c) Distributors that distribute more than one type of 70
alcoholic beverage shall deduct the gross taxes for their 71
products as prescribed in this subsection for vinous, 72
spirituous, or malt beverages. 73
(2)(a) Extraordinary losses of vinous, spirituous, or malt 74
beverages are excluded from the deductions in subsection (1). 75
ENROLLED
CS/HB 1137 2026 Legislature
CODING: Words stricken are deletions; words underlined are additions.
hb1137 -01-er
Page 4 of 6
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
For purposes of this section, the term "extraordinary loss" 76
means an unusual loss resulting from acts of God or nature which 77
are not expected to recur; accidents that occur during 78
interstate or intrastate shipment from manufacturer to 79
distributor, from distributor to distributor, or from 80
distributor to retailer; or products being recalled by a 81
manufacturer and destroyed by a distributor. The term does not 82
include a loss from evaporation, breakage, or spoliation 83
incurred on the licensed premises in the normal course of 84
business which exceeds the standard deductions prescribed in 85
subsection (1). 86
(b) A distributor shall immediately notify the division 87
when an extraordinary loss occurs. A distributor may deduct the 88
actual gallonage of the extraordinary loss. The distributor 89
shall show proof of the extraordinary loss before recovering or 90
crediting any excise tax due to the unsellable alcoholic 91
beverages by: 92
1. Providing a copy of a traffic accident investigation 93
report or an incident report from the investigating agency when 94
the loss occurs in transit; 95
2. Having the extraordinary loss witnessed or documented 96
by an authorized division employee when the extraordinary loss 97
occurs on the premises of the distributor; or 98
3. Clearly and objectively establishing the extraordinary 99
loss through appropriate documentation as determined by the 100
ENROLLED
CS/HB 1137 2026 Legislature
CODING: Words stricken are deletions; words underlined are additions.
hb1137 -01-er
Page 5 of 6
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
division. 101
(c) The distributor shall show proof of the destruction, 102
dumping, or recycling of the alcoholic beverages involved in the 103
extraordinary loss by providing a statement to the division from 104
the distributor, or the distributor's authorized employee or 105
agent, evidencing such destruction, dumping, or recycling. The 106
statement must include a description of the location of the 107
extraordinary loss; the alcoholic beverages, by gallonage and 108
tax category, which have been destroyed, dumped, or recycled; 109
and the location of the site where the alcoholic beverages were 110
destroyed, dumped, or recycled. 111
(3)(a) Upon notification by a distributor, the division 112
shall inspect any remaining undamaged invoiced inventory 113
intended to be distributed. 114
(b)1. A distributor reporting extraordinary losses must 115
furnish proof that the excise tax has not been recovered from 116
any other source. The distributor shall provide the division 117
with copies of all insurance claims and receipts of payment upon 118
request by the division. 119
2. The distributor shall record on forms prescribed by the 120
division the actual gallonage of breakage, spoliation, or 121
evaporation of alcoholic beverages; the date of product 122
destruction; the quantity destroyed, by tax classification; and 123
a statement signed by the distributor, or the distributor's 124
authorized employee or agent, that the product was destroyed. 125
ENROLLED
CS/HB 1137 2026 Legislature
CODING: Words stricken are deletions; words underlined are additions.
hb1137 -01-er
Page 6 of 6
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
3. The division shall retain all completed forms for 3 126
years. 127
(4) The division may adopt rules and forms to implement 128
this section. 129
(5) This section applies retroactively to January 1, 2025. 130
Section 2. This act shall take effect upon becoming a law. 131