Spotlight: Quota License Transfer Fees
Under rule 61A-5.010 and section 561.32(3)(a) of the Florida Statutes, there are transfer fees associated with the transfer of a quota license. The Division calculates the transfer fee based on an assessment of the average annual value of gross sales of alcoholic beverages of the past 3 years immediately preceding transfer and levied at the rate of 4 mills, not to exceed $5,000.
“Sure, you can transfer that. But it’s going to cost you.”
An applicant for the transfer of a quota license must provide records of gross sales of alcoholic beverages for the 3 years immediately preceding the transfer of the license. In lieu of providing sales records, an application may elect to pay the maximum $5,000 fee.
Calculate your own fee using the state’s quota license transfer fee calculator (link).
The Division will use the following records to compute the appropriate transfer fee:
- Department of Revenue sales tax records
- Accounting records that have been audited and attested to by a CPA
- Income tax records, or
- Records of sales on file with the Division of Alcoholic Beverages & Tobacco.
The Division computes the actual fee by taking the total of 36 month of gross sales divided by 3 to determine an average annual gross sale of alcoholic beverages. They then multiply by .004 to arrive at the appropriate transfer fee.
The applicant is not required to provide records of gross sales of alcoholic beverages for any month in which the quota license was in Division-approved inactive status for the entire month, and the applicant can put zero gross sales of alcoholic beverages for each of those months. The applicant can also claim zero gross sales for months in which the previous license holder didn’t have an open sales tax account with the Department of Revenue.
The Division may be able to assist the applicant in obtaining the appropriate records. The Division will attempt to obtain records of gross sales from the Department of Revenue any prior licensee, except the immediate transferor, who held the license during the past 3 years. If the quota liquor license was transferred by court order of certificate of title during the past 3 years, the Division will not attempt to obtain records of gross sales prior to the date of such transfer.
Please also keep in mind that there is a transfer penalty fee for transfer of a license within 3 years of the original issuance of the license. The transfer penalty fee is 15 times the maximum annual license fee, or $27,300.