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July 18, 2009

The Daily Breeze

Tax on CRV

I'm calling about the CRV deposit on cans. At the 99 Cents Store, they charge sales tax on the deposit. Now I know there's a deposit on the item but then they charge tax separately. I found that at three 99 Cents stores.

- Mildred Pedde


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, 100percent natural fruit juice and noncarbonated, noneffervescent bottled water, according to the publication.

Also, noncarbonated sports drinks "are generally not taxable unless they are packaged or labeled as a food supplement, food adjunct, dietary supplement, or dietary adjunct," the publication says.

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 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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