The bill introduces a new section, 561.1215, to the Florida Statutes, which allows distributors of vinous, spirituous, or malt beverages to deduct certain losses from their excise tax reports. Specifically, distributors can claim deductions for alcoholic beverages that have become unsellable due to warehouse breakage, spoliation, evaporation, expiration, or unfitness for human consumption. The bill specifies the percentage of gross tax that can be deducted for each type of beverage: 0.49% for vinous, 0.15% for spirituous, and 0.20% or actual breakage for malt beverages. Additionally, distributors must elect their method of determining breakage for malt beverages annually and follow specific guidelines for reporting and documenting these losses.

The bill also addresses extraordinary losses, which are defined as unusual losses resulting from acts of God, accidents during shipment, or product recalls. These extraordinary losses are excluded from the standard deductions and require immediate notification to the Division of Alcoholic Beverages and Tobacco. Distributors must provide proof of the extraordinary loss, including documentation of destruction or recycling of the affected beverages, and must ensure that the excise tax has not been recovered from any other source. The division is tasked with inspecting remaining inventory and retaining records for three years. The provisions of this bill are retroactively applicable from January 1, 2025.