California CRV Tax: How the Refundable Deposit Works

While many consumers refer to it as the “CRV tax,” the California Redemption Value (CRV) is a refundable deposit, not a tax. When you purchase certain beverages at a retail store, a small deposit is paid on the container. This program is managed by the California Department of Resources, Recycling, and Recovery (CalRecycle). The primary purpose of this state-mandated system is to create a financial incentive for consumers to recycle their beverage containers. The charge is fully refundable to the consumer upon returning the empty container to a certified recycling center.

Understanding the CRV Charge

When consumers purchase eligible beverages, the CRV deposit is paid at the point of purchase and is itemized on the receipt. The system is designed for the consumer to recover this deposit by returning the empty container for recycling.

The CRV deposit amount is determined by the container’s size. For most eligible beverage containers smaller than 24 ounces, the CRV is 5 cents. For containers 24 ounces or larger, the deposit is 10 cents. As of January 1, 2024, the program expanded to include containers for wine, distilled spirits, and more juices. Wine and distilled spirits in boxes, bladders, or pouches have a 25-cent CRV.

The program applies to beverages packaged in aluminum, glass, plastic, and bi-metal containers. This includes sodas, beer, water, coffee and tea drinks, and fruit drinks. With the 2024 expansion, it now also covers wine, liquor, and more juices. However, containers for milk, infant formula, and medical food are exempt.

The Redemption Process

To receive a refund for the CRV deposit, consumers must take their empty, eligible containers to a certified recycling center. CalRecycle maintains an official online locator tool to help find the nearest participating center. Starting January 1, 2025, new rules will require more retail stores that sell CRV beverages to either redeem containers in-store or join a cooperative that provides redemption services, increasing consumer options.

Containers must be empty of all liquid, and it is recommended they be kept reasonably clean to avoid contamination and odor. The containers should also be left whole and not crushed, as the recycler needs to verify their eligibility. The label indicating the product and its CRV eligibility must be intact and readable.

At the recycling center, consumers have two options for redemption: individual count or by weight. If you have a small number of containers, you can request they be counted one by one. For larger quantities, the process is often expedited by weighing the materials. The center will have posted rates for the per-pound value of aluminum, glass, and plastic, which are calculated to be equivalent to the container-count refund.

Redemption Rules and Limits

CalRecycle has established daily limits for redeeming CRV containers to prevent fraud, such as the illegal redemption of out-of-state containers. A consumer is permitted to redeem up to 100 pounds of aluminum or plastic containers per day. The daily limit for glass containers is significantly higher, set at 1,000 pounds per day. These limits apply per person, per day.

Consumers have the right to be paid by individual container count for up to 50 containers of each material type (50 aluminum, 50 glass, 50 plastic) per day. A recycling center must honor this request and cannot force a customer to accept a by-weight payment for these smaller quantities. This ensures that consumers receive the full deposit value for their containers, as by-weight payments can sometimes be slightly less precise.