In Lake County, Florida, a significant issue has emerged regarding convenience store chains charging consumers an additional tax on ready-to-drink coffee. Despite being prohibited by state law, many stores continue to impose this tax, leaving customers frustrated and confused.
Overview of the Coffee Tax Issue
Months after Action 9 first revealed the situation, some chains still charged this tax. “The state cheerfully is taking our money, and there’s no repercussion, there’s no answer, there’s no concern,” expressed Paul Olkowski, a consumer affected by this issue.
While some stores have ceased this practice, others continue to charge tax on drinks that are classified as food products, and therefore should not be taxed. Ready-to-drink coffees have been considered exempt from sales tax in Florida for many years, yet the confusion persists.
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For Olkowski, cracking open a cold can of coffee now carries an unsettling reminder of the extra charges. “Well, you know, I enjoyed them a lot more prior to this happening to me,” he shared with Action 9 Consumer Investigator Jeff Deal.
He discovered the issue when he noticed that while his local Walgreens did not apply sales tax on ready-to-drink coffees, the RaceTrac near Minneola did. He paid $6 for two cans, only to see a 42-cent tax on his receipt.
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Confused, Olkowski reached out to the Florida Department of Revenue, which sent a letter confirming that coffee and its substitutes are indeed categorized as food products and therefore exempt from sales tax in Florida.
In response to the investigation, the state provided a letter listing 44 specific coffee beverages exempt from tax at grocery or convenience stores, including Olkowski’s favorite, Starbucks Double Shot Coffee.
This list was made public on the Florida Department of Revenue website in December 2024 to inform retailers. The state advised consumers that the best way to seek a refund for any tax paid is to return to the seller. However, when Olkowski attempted this in 2024, RaceTrac contacted the Lake County Sheriff’s Office.
In a body camera video, a deputy warned Olkowski, “If you return, you’ll be arrested.” To which Olkowski replied, “Awesome, awesome. Thank you.”
The video also shows a store manager admitting to deputies, “If you go to any gas station, we all charge tax on coffee products.”
In 2025, Action 9 began testing various convenience stores in Central Florida.
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At an Orlando 7-Eleven, they purchased two bottled Frappuccinos. Then, they bought some cans of Java Monster drinks at a Circle K store in Clermont and a canned vanilla latte at Wawa in Orlando. Every convenience store tested charged sales tax on coffee drinks that were exempt, except for RaceTrac, which had eliminated the tax after the initial investigation.
“Nobody would believe me, and nobody seemed to care at the store or management level,” Olkowski remarked.
Upon checking in February 2026, Action 9 found that Wawa and 7-Eleven no longer charged sales tax on coffee drinks, yet Circle K continued its tax practice.
Olkowski indicated, “Circle K is actually doubling down.” He recounted an encounter where a Circle K manager became confrontational and asked him to leave for questioning the tax charges.
Florida law has defined coffee drinks as non-taxable since 1983, over 40 years ago. Yet, apart from RaceTrac, many convenience stores appear unaware of this regulation.
Jeff Deal commented, “In over 40 years, it’s got to be a lot of money.” To which Olkowski added, “Oh, there’s hundreds of millions of dollars.”
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In an email inquiry, when Action 9 asked the Florida Department of Revenue about measures taken since the posting of the advisory in 2024, the response indicated, “In Florida, sales tax collection is built primarily on the taxpayers’ voluntary compliance with tax laws. There is no targeting of a specific industry for enforcement action.”
While Olkowski appreciates that many stores have ceased charging tax since the issue was exposed, he remains perplexed as to why the state has not taken action against those that still are noncompliant.
“Doesn’t sound like a mistake. It just sounds like nobody cares because the state’s getting the money,” he stated.
When stores collect sales tax on products, they forward that revenue to the state. While the Department of Revenue did not specify if any action had been taken against noncompliant stores, it stated that it audits thousands of businesses every year.
Action 9 reached out to Circle K both last year and this year, but has yet to receive a response regarding their tax practices.
It is important to note that ready-to-drink coffees purchased from cafes or vending machines are taxable. The rules surrounding this issue are complex, which may lead to misunderstandings at convenience stores.
Consumers can learn more about the taxability of food products with this list from the Florida Department of Revenue: Nontaxable Medical Items and General Grocery List
Once again, the Florida Department of Revenue suggests seeking a refund directly from the seller. Should the seller refuse, the process becomes more complex. Customers might need to request an Assignment of Rights Refund of Tax form (Form DR-26A) and submit it to the state along with additional documentation to claim a refund. Detailed instructions can be found here: DOR Instructions for Refund and here’s a link to that form: Assignment of Rights to Refund of Tax form.
RaceTrac has established a specific email for customers wishing to request this form: salestaxrefunds@racetrac.com
Key Takeaways
- Many convenience stores in Florida have been illegally charging sales tax on ready-to-drink coffee.
- These beverages are classified as food products and are exempt from sales tax.
- Consumers are encouraged to seek refunds directly from retailers for any tax paid.
- Florida Department of Revenue acknowledges the complexity of tax laws surrounding coffee drinks.
- Action 9 continues to monitor compliance among various convenience stores.
FAQ
What should I do if I was charged tax on coffee drinks I purchased?
You should first attempt to obtain a refund directly from the seller.
Are all ready-to-drink coffee products exempt from sales tax in Florida?
Yes, ready-to-drink coffee products are considered food and should not be taxed.
How can I get more information on food tax exemptions in Florida?
You can refer to the Florida Department of Revenue’s website for detailed information on tax exemptions.
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