Subcommittee codifies decades‑old deduction for spoiled alcoholic beverage inventory
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Summary
The subcommittee approved CSR HB 1137 to put into statute a Division of Beverage rule that allows distributors to deduct broken or spoiled alcoholic beverages, including extraordinary losses such as storm damage, after the rule was nullified by an administrative review.
Representative Robinson and Representative Orrador sponsored CSR HB 1137, which would codify a Division of Business and Professional Regulation rule that for about 40 years allowed wholesalers and distributors to deduct damaged, broken or spoiled alcoholic beverage inventory from excise tax reports. The sponsor told the committee the rule was nullified last November by the Joint Administrative Procedures Committee for lacking explicit statutory authorization and the bill restores that authority.
The sponsor described the deduction as including a process for extraordinary losses — for example, storm damage that renders inventory unsellable. Committee members asked clarifying questions about the definition of “broken or spoiled” inventory and the potential fiscal impact of the deduction; the sponsor estimated it would amount to “several million dollars” to industry but framed the change as removing a tax on goods that never entered commerce.
Industry representatives waived in support; Jared Ross (Florida Beer Wholesalers Association) and Monica Rodriguez (Southern Glazers Wine & Spirits) were listed as supporting the measure. After brief debate and ceremonial remarks noting the sponsor’s final subcommittee presentation, members voted to report the bill favorably.
The subcommittee recorded the bill as passed and will show it reported favorably to the next stage.