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February 20, 2009

Daily Breeze

CRV and sales tax

I have a question about CRV. Is it taxable?


If the beverage is taxable, the CRV (California Redemption Value) is taxable.

Examples of taxable beverages include beer, wine and other alcoholic beverages, carbonated mineral and soda waters and carbonated soft drinks and carbonated juices with additives, according to the Board of Equalization's publication on "Tax Tips for Liquor Stores."

Examples of beverages not charged tax are noncarbonated, 100 percent natural fruit juice and noncarbonated, noneffervescent bottled water, according to the BOE publication.

The state does not consider the CRV to be a deposit but rather a regulatory fee and therefore part of the total amount of the sale on taxable beverages.

CRV was created under the 1986 Beverage Container Recycling and Litter Reduction Act as an incentive for consumers to recycle beverage containers. Containers under 24 ounces have a 5-cent CRV while containers 24 ounces or larger have a 10-cent CRV.

- Stephanie Walton


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