Florida/Georgia Personal Injury & Workers Compensation

...and fruit wine manufactured in the state as being violative of the Commerce Clause, concluding that the exemption had both the purpose and effect of discriminating in favor of locally produced products. At the time of the Bacchus decision, sections 564.06 and 565.12, Florida Statutes (Supp. 1984), granted tax preferred treatment to alcoholic beverages made from certain base agricultural crops grown in Florida and manufactured and bottled in Florida. In response to the Bacchus decision, the Florida Legislature amended sections 564.06 and 565.12 in Chapters 85-203 and 85-204, Laws of Florida. The amended provisions, as codified in sections 564.06 and 565.12 Florida Statutes (1985), among other things, grant exemptions or tax preferences to wines and distilled spirits manufactured from citrus, sugar cane and certain grape species, all of which will grow in Florida, or from by-products o...

...Corporation, a manufacturer of wine coolers in California who sells its products to wholesalers in Florida for resale in the state. Tampa Crown, Florida Beverage and McKesson challenge the preference and disqualification provisions of both sections 564.06 and 565.12. Brown-Forman challenges only those of section 564.06....

...any harm to their business flowing from those provisions." Each of the appellees claims that the overall tax preference scheme for alcoholic beverages, which is made up of both the exemption provisions and the disqualification provision of sections 564.06 and 565.12, discriminates against interstate commerce and thus, has an adverse competitive impact on their *1003 businesses....

...d scrutiny under the Pike balancing test. After reviewing the challenged provisions, in light of the record in this case, we agree with the appellees that, even under the Pike balancing test, summary judgment was properly entered in their favor. [1] Section 564.06, Florida Statutes (1985) provides in pertinent part: Excise taxes on wines and beverages; exemptions....

...It is also undisputed that the beverages targeted for preferential treatment are those manufactured from specified crops, all of which will grow in Florida. It is likewise undisputed that alcoholic beverages made from citrus, sugarcane and the grape species designated in section 564.06 are regarded by consumers as less desirable than alcoholic beverages manufactured from vinifera grapes (which cannot be grown in commercial quantities in Florida) and other agricultural bases....

...erwise unjustified and therefore excessive burden on interstate commerce. We also agree with the appellees that even if the overall preference scheme did not violate the commerce clause by placing an excessive burden on interstate commerce, sections 564.06(9)(a) and 565.12(1)(c)1., (2)(c)1....

...refund, cross-appellants would in all probability receive a windfall, since the cost of the tax has likely been passed on to their customers. Accordingly, both those portions of the judgments below finding [t]hat the provisions of [Florida Statutes] 564.06(2), (3) following the term "$3.00 per gallon," (4) following the term "3.50 per gallon," (7) and (9) through (13) and [Florida Statutes] 565.12(1)(b), (1)(c), (2)(b), (2)(c) and (5) through (10) are ......

...We have jurisdiction. Art. V, § 3(b)(5), Fla. Const. We affirm the summary judgment below. This case involves a challenge to portions of two state statutes which imposed an excise tax on certain alcoholic beverages in the years between 1981 and 1985. §§ 564.06 & 565.12, Fla....

...at 3057. We recently determined in Div. of Alcoholic Beverages and Tobacco v. McKesson Corp., 524 So.2d 1000 (Fla. 1988), that chapters 85-203 & 85-204, Laws of Florida (1985), were unconstitutional under Bacchus. These two chapters had amended sections 564.06 and 565.12, Florida Statutes (1983), in an attempt to correct the deficiences recognized in Bacchus....

...Because the statutory provisions in dispute in this case are more restrictive of interstate commerce, we find McKesson and Bacchus dispositive. We thus approve the trial court's conclusion that the following provisions of the taxing statutes violated the commerce clause, article I, section 8 of the constitution: (a) all of section 564.06(2), Florida Statutes (1981 to 1984 supp.), which exempted from taxation certain wines and alcoholic beverages manufactured and bottled in Florida; (b) that portion of section 564.06(3), Florida Statutes (1981 to 1984 supp.), exempting from taxation certain other wines manufactured and bottled in Florida; (c) that portion of section 564.06(4), Florida Statutes (1981 to 1984 supp.), exempting from taxation certain natural sparkling wines manufactured and bottled in Florida; (d) all of section 565.12(1)(b), Florida Statutes (1981 to 1984 supp.), which reduced the taxation...

...Inc. *1131 EHRLICH, Chief Justice. We have before us the direct appeal of a final judgment declaring the recent amendment to Florida's alcoholic beverage tax scheme, chapter 88-308, sections 10 and 11, Laws of Florida, which is codified at sections 564.06 and 565.12, Florida Statutes (Supp....

...We have jurisdiction, article V, section 3(b)(5), of the Florida Constitution, and affirm. Recently, in Division of Alcoholic Beverages and Tobacco v. McKesson Corp., 524 So.2d 1000 (Fla.), cert. granted, ___ U.S. ___, 109 S.Ct. 389, 102 L.Ed.2d 378 (1988), [1] this Court held provisions of sections 564.06 and 565.12, Florida Statutes (1985), which granted tax exemptions or tax preferences to alcoholic beverages made from certain agricultural crops which grow in Florida, regardless of the place of manufacture, invalid under the commerce clause. Prior to the 1985 amendment, sections 564.06 and 565.12, Florida Statutes (Supp. 1984), granted tax-preferred treatment to alcoholic beverages made from certain base crops grown in Florida and manufactured and bottled in Florida. The 1985 amendment to sections 564.06 and 565.12 was implemented in response to the 1984 United States Supreme Court decision in Bacchus Imports, Ltd....

...ruck down as being violative of the commerce clause because it had both the purpose and effect of discriminating in favor of local products. Relying on Bacchus, the plaintiffs in McKesson took the position that because the 1985 amendment to sections 564.06 and 565.12 had both the purpose and effect of discriminating against interstate commerce, the challenged provisions were properly struck down by the trial court as "simple economic protectionism." 524 So.2d at 1003....

...protect the health, safety, welfare, and economic integrity of the state, the costs of ensuring compliance with relevant state laws should be included in the taxes imposed upon said alcoholic beverages. Sections 10 and 11 of the law, as codified in section 564.06 and 565.12, Florida Statutes (Supp....

...Subsection 565.12(4) provides that all beverages distilled in this state for sale in this state, except flavoring extracts, shall be distilled above 185 proof and shall be made from produce grown on land inspected by Florida agricultural inspectors. Subsection 564.06(7) provides that all fortified beverages taxed under that section shall be fortified with alcohol, except for flavoring extracts, distilled above 185 proof and shall also be made from produce grown on land inspected by Florida agricultural inspectors. Sections 564.06 and 565.12 provide in pertinent part: 564.06 Excise and import taxes on wines and beverages....

...But the state did not have at the time of hearing nor had it ever had an alcoholic beverage quality control program or an inspection program for the land upon which crops used in the production of such beverages are grown. The court held the provisions of Section 10(1) of Chapter 88-308, Laws of Florida, amending § 564.06, Florida Statutes; and the provisions of Section 11(1) of Chapter 88-308, Laws of Florida, amending § 565.12, Florida Statutes ......

...In light of the clearly limited interests furthered by the challenged provisions, we do not believe that twenty-first amendment concerns are sufficiently implicated to allow this clearly discriminatory tax scheme to stand. Accordingly, the judgment of the trial court holding subsections 564.06(1) through (10) and subsections 565.12(1) through (5), Florida Statutes (Supp....

...nly does not mean discrimination in a way that effectively forecloses out-of-state firms from the Florida market. This leaves excise taxes. Like many states, Florida receives significant tax revenue from excise taxes on alcohol pursuant to section 564.06 of the Florida Code.19 It is true that North Dakota listed the raising of revenue as a legitimate core 18 The State agrees with this interpretation of Florida law on page 8 of its brief. 19...

...The parties stipulate that “[f]or wine produced out-of-state, the [excise] tax is generally paid by the wholesale distributor. For wine produced in Florida, the tax is paid by the winery.” Joint Stipulation, ¶ 28. This must be inferred from § 564.06, which says that “all manufacturers and distributors” must pay a tax. 22 Out-of-state wineries are prepared to remit any excise or sales taxes due on wine purchases....

...nly does not mean discrimination in a way that effectively forecloses out-of-state firms from the Florida market. This leaves excise taxes. Like many states, Florida receives significant tax revenue from excise taxes on alcohol pursuant to section 564.06 of the Florida Code.19 It is true that North Dakota listed the raising of revenue as a legitimate core 18 The State agrees with this interpretation of Florida law on page 8 of its brief. 19...

...The parties stipulate that “[f]or wine produced out-of-state, the [excise] tax is generally paid by the wholesale distributor. For wine produced in Florida, the tax is paid by the winery.” Joint Stipulation, ¶ 28. This must be inferred from § 564.06, which says that “all manufacturers and distributors” must pay a tax. 22 Out-of-state wineries are prepared to remit any excise or sales taxes due on wine purchases....

...Their argument is that the “increase in tax” referred to in section 17 as it applies to wine was an increase in a tax imposed only on manufacturers and distributors, not vendors of wine. They argue that section 14 of chapter 83-349 increased the tax rate already imposed by section 564.06, Florida Statutes (1981), which statute did not impose a tax on vendors of wine....

...Alcoholic beverages in the inventories of vendors on the effective date of the tax rate increase imposed by sections 12, 14, and 15 of chapter 83-349 would, except for the provisions of section 17, not have been subject to the rate increase because the tax is normally paid by distributors. See sections 563.05, 564.06 and 565.12, Florida Statutes (1981)....

...Under Fla.Stat. § 561.50(1), all excise taxes are collected at the distributor level rather than at the retail level. The bankruptcy court found that the trustee for the debtor was not liable for excise taxes levied pursuant to Fla.Stat. §§ 563.05 and 564.06....

...he debtor’s inventory are subject to Florida excise taxes. A threshold question, not directly addressed by the district court, is whether the sales in question are subject at all to the Florida excise tax. As noted supra, Fla.Stat. §§ 563.05 and 564.06 impose excise taxes upon manufacturers, distributors, and vendors of beer and wine....

...subject to all Federal, State and local taxes applicable to such businesses to the same extent as if it were conducted by an individual or corporation. Since we agree that the trustee acted as a distributor for purposes of Fla.Stat. §§ 563.05 and 564.06, the question presented becomes whether the trustee was “conducting any business” within the purview of 28 U.S.C....

...The district court took note of the highly regulated nature of alcoholic beverage transactions in concluding that, under 28 U.S.C. § 959 (b), the sale of the debtor’s inventory was subject to the excise tax as provided in Fla.Stat. §§ 563.05 and 564.06....

...ing any business” within the contemplation of 28 U.S.C. § 960 in liquidating the debtor’s inventory. Thus, we conclude that the bankruptcy court properly held that the estate is not subject to tax liability pursuant to Fla.Stat. §§ 563.05 and 564.06....

ERVIN, Judge. Appellant, James Beam Distilling Company (Jim Beam), appeals a final order of the Division of Alcoholic Beverages and Tobacco denying appellant’s application for special excise tax classification sought pursuant to Section 564.06, Florida Statutes (1985). Appellant raises three issues in its appeal. Finding no merit regarding the first two issues, we address only the third in which appellant argues the special excise tax scheme embraced within the provisions of Section 564.06, Florida Statutes (1985), is unconstitutional on its face, or as applied by the Division of Alcoholic Beverages and Tobacco....

...s facial constitutionality claims and discuss only the constitutionality of the statute as applied to the taxpayer’s request for a special classification during the 1986-1987 tax year. Appellant sought special excise tax classification pursuant to section 564.06 for several distilled spirit products manufactured from citrus fruit and sugar cane in Florida and bottled in the state of Indiana....

...The special excise tax classification was denied by the Division because Indiana was determined to have provided economic incentives to alcoholic beverages manufactured within Indiana and to have enacted discriminatory taxes favoring Indiana-produced beverages in violation of section 564.06(9)(a) and (b), providing that the special tax rates authorized in section 564.06 shall not be available in Florida to alcoholic beverages manufactured in states imposing discriminatory taxes against alcoholic beverages manufactured or bottled out-of-state, or to such beverages produced in states providing them agricultural price supports or other economic incentives or advantages....