If you bottle or can your own beer and sell it out of your tap room or self distribute your beer, this is critical information you need know to become a deposit initiator in New York State.
From the NYS Dept. of Tax & Finance website: “New York State’s Returnable Container Act requires every deposit initiator to collect a $.05 deposit on beverage containers containing less than one gallon of carbonated soft drinks, beer, malt beverages, wine coolers or water, sold in New York.”
A deposit initiator is the first bottler, distributor, dealer or agent to collect the deposit on a beverage container sold in New York State. You’re a deposit initiator if you:
If you’re a deposit initiator you must:
Your Refund Value Account
You must establish a refund value account to hold the deposits for all beverage containers you sell and to reimburse customers on beverage containers they redeem. You will use this account to supply your filing information for each quarter and to transfer unclaimed deposits to the Tax Department.
Deposit initiators could be subject to penalties if they fail to comply with the law in any of these ways:
Penalties can be up to $1,000 for each quarter the failure occurs and an additional $1,000 for each quarter the failure continues. If you can establish that the failure was due to reasonable cause and not willful neglect, the Tax Department will cancel the penalties.
Create an account: https://www.tax.ny.gov/online/bus.htm
Step-by-Step Online Registration Instructions:
NYS DEC FAQs:
Thank you to our One Stop Shop, Stefan Fleming, for sharing this information.