Bottle deposits and CRV at the register, explained

If you sell covered beverage containers in one of the ten US deposit states (California, Connecticut, Hawaii, Iowa, Maine, Massachusetts, Michigan, New York, Oregon and Vermont), you must charge the state deposit on each covered container at the register, show it on the receipt and handle redemptions as your state requires. The amount, the covered containers and the tax treatment all differ by state, so set them per store.

Key takeaways

• Ten states run container-deposit laws; amounts and covered containers differ.
• Most deposit laws cover beer, soda and water; wine and spirits are often excluded.
• Charge the deposit per container, as its own receipt line, so a case multiplies it automatically.

What a deposit law does

A deposit (in California, the CRV or California Redemption Value) is a small amount added to the price of a covered container. The customer gets it back when the empty container is returned for recycling. The retailer collects it at the sale and, depending on the state, passes it to the distributor or the state system.

Amounts in some common states

State	Typical amount	Notes
California (CRV)	5¢ under 24 oz, 10¢ for 24 oz and over	Includes many beverage types; check the list
Michigan	10¢	Beer, soft drinks and some others
New York	5¢	Beer, malt beverages, soda, water; not wine or liquor
Oregon	10¢	Wide coverage of beverage containers

Amounts and coverage change; confirm current rules with your state agency or the Container Recycling Institute before setting up.

How to charge deposits at the register

The cleanest setup charges the deposit per container, as a separate line:

1. Create a deposit item for each amount your state uses (for example “Deposit 5¢”).
2. Link it to the base unit of each covered product (the can or bottle).
3. When a case or a six-pack is sold, the register multiplies the deposit by the number of containers in that unit.
4. The receipt shows the deposit as its own line.

In Bottle Shop POS, deposits ride on the base unit, so a 24-can case adds 24 deposits without anyone counting. Tax treatment of the deposit line follows the tax group you set for it.

Common mistakes

• Charging deposits on non-covered items. Wine and liquor bottles are often excluded. Charging them anyway overcharges customers.
• One deposit per case. A case contains many containers; charge per container.
• Hiding the deposit in the price. Customers and auditors expect to see it.
• Forgetting multi-state differences. A store in New York and one in New Jersey (no deposit law) need different settings.

Redemptions

Some states require retailers that sell covered containers to accept returns, or to arrange redemption through a centre. If you refund deposits at the counter, record them as a refund line or a payment out, so your deposit report shows collected and refunded amounts.

Reporting

At the end of each period, run the deposit report: deposits collected per store, and refunds if you record them. Your accountant uses it for whatever reconciliation your state and distributors require.

If you are not in a deposit state

You do not need deposit lines. If you open a store in a deposit state later, add the deposit item and link it to that store’s covered products.

Summary

Know your state’s list and amounts, charge per container as its own line, keep non-covered bottles out, and run the deposit report each period. Read how the register’s switches map to state rules on state alcohol rules.