Florida distilleries increasingly look to import bulk distilled spirits for bottling and distribution, whether to expand their own product lines or provide co-packing services to foreign producers. A Florida distillery can serve as its own importer or it can contract with a Florida importer for purposes of bringing bulk spirits into the state. In either case, the process is...
Continue ReadingAlex decides to purchase a restaurant business in Florida. She is excited about the opportunity and works closely with the seller to understand how the restaurant is operated. However, Alex assumes that all financial matters are in order and proceeds with the transaction without conducting a thorough review of the seller’s tax obligations. She completes the purchase, acquiring ownership...
Continue ReadingImporting alcoholic beverages into Florida might seem like a daunting task, but with the right knowledge and preparation, it can be a lucrative venture. Whether you’re bringing in a unique tequila from Mexico or a brand-new Irish whiskey, here are seven crucial tips to help you succeed in the Sunshine State. Secure the Necessary Licenses To import alcoholic beverages...
Continue ReadingReady-to-drink beverages, often abbreviated as RTDs, have become quite popular among folks looking for convenient, pre-mixed alcoholic cocktails. These beverages come in cans and are ready for consumption right out of the fridge. However, behind the convenience lies a tangled web of taxation complexities, especially when it comes to excise taxes. Firstly, let’s understand what RTDs are. These beverages...
Continue ReadingIn the world of alcoholic beverages, a fascinating process called “bulk transfer” takes place. This is when one manufacturer, known as the “shipper” or “consignor,” sends a large quantity of wine or distilled spirits to another manufacturer, referred to as the “receiving plant” or “consignee.” This type of transfer, often known as a “transfer in bond” (TIB), is quite...
Continue ReadingTaxes are a vital part of importing spirits into the United States. In most cases, imported spirits need to pay taxes at US Customs. These taxes, known as federal excise taxes, are collected by the Alcohol and Tobacco Tax and Trade Bureau (TTB). Understanding how taxes work for imported spirits can help you better understand their costs and pricing....
Continue ReadingAlcoholic beverage companies operating in Florida must apply for and maintain several federal, state and local government licenses and permits. One of the most common is the business tax receipt (BTR). Florida Counties and Cities Require BTRs for Nearly All Businesses The Florida Statutes generally authorizes counties and cities to levy a business tax for the privilege of engaging...
Continue ReadingThe Craft Beverage Modernization Act (CBMA) is a provision in the Tax Cuts and Jobs Act of 2017 that lowered taxes on all beverage alcohol producers, big and small, foreign and domestic. In 2020, the tax cuts became permanent. Effective as of January 1, 2023, the Treasury Department–particularly, the federal Alcohol and Tobacco Tax and Trade Bureau (TTB)–is in...
Continue ReadingThe end of the federal Craft Beverage Modernization and Tax Reform Act (CBMTRA) on December 31, 2020 would mean big excise tax increases for small manufacturers. What is the CBMTRA and Where is It Going? The CBMTRA was passed along with the Tax Cuts and Jobs Act of 2017. The federal law made changes to the US Tax Code...
Continue ReadingTemporary Relief from Federal Requirements for Nonbeverage Alcohol To encourage the nation’s alcohol manufacturers to produce hand sanitizer and ethanol for use in hand sanitizer during the COVID-19 pandemic, the federal Alcohol and Tobacco Tax and Trade Bureau (the TTB) issued Public Guidance 2020-1 and 2020-1A. The TTB guidance continues through December 31, 2020. Under the TTB guidance, the...
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