Retailers in 10 U.S. states are legally required to charge bottle deposit fees, with significant penalties for non-compliance. Bottle deposit laws like the US Bottle Bill promote recycling by adding refundable fees (typically 5¢ – 10¢) to beverage purchases. There is no built in option for Shopify merchants to apply bottle deposits so the best method is to use an app like Magical Product Fees to charge U.S. Bottle Bill Deposit Fees on Shopify. This will help store owners streamline compliance, enhance transparency, and avoid fines.
Why do I have to charge Bottle deposits?
In 2018, a beverage distributor in New Jersey was fined $550,000 because they failed to charge customers in New York a 5¢ bottle deposit fee.
This staggering amount was the largest fine ever imposed in the US for failing to charge a bottle fee, and illustrates the high degree of responsibility businesses have when it comes to complying with mandated recycling programs.
I know as a merchant, you have a lot on your plate. You need to make sure that your store is compliant, but you can’t afford to spend too much time worrying about hefty fines, tinkering with your online store, or troubleshooting problems with your website.
Although the flow of bottle deposit fees can be a complicated process from distributor to customer, the good news is that charging fees on your Shopiy store can be quite easy!
Adding bottle deposit fees to your store also comes with a variety of benefits. Being transparent about fees on your store builds trustworthiness, incentivizing customers to return to your store builds loyalty, and doing good for the environment can help you position your brand as environmentally conscious.
I live in a region with a mandatory bottle fee, and as a gin enjoyer, I’ll wind up with enough bottles to return to get a good deposit back. When I return my bottles I am likely to kill two birds with one stone and grab another bottle of Hendrick’s, so I truly believe bottle programs can boost patronage, too.
In this guide, we’ll break down which states require bottle fees, how to charge them on your Shopify store, and some tips to ensure your store is set up for success. Let’s dive in!
What Are Bottle Deposit Fees?
Bottle deposit fees, also known as container deposit fees, are a proven way to better collect beverage containers for increased recycling rates. Each bottle has a refund value of about 5 or 10 cents, which incentivizes customers to return their bottles and cans for proper recycling.
I say proven because there is concrete evidence that states with bottle bills often achieve better recycling rates of 60–90%, compared to only 20–40% in states without them!
Currently, in the US, only 10 states have bottle deposit laws. The programs that exist in the U.S. vary slightly from state to state, each defining which bottles and containers are included or excluded in the program, and what the deposit fee is.
If you have a Shopify store in a state without bottle bills, you are not obligated to participate in a deposit or recycling program. However, if your store is located in a state with a bottle bill law, you are legally required to charge customers a refundable deposit on eligible beverage containers and ensure customers can redeem their deposit at your store or designated redemption center.
If your store is located in a state with a bottle bill law, you are legally required to charge customers a refundable deposit on eligible beverage containers
State-Specific Regulations
Bottle deposit fees are set by state legislation, so each state has its own fee amounts and container eligibility. Other than in California, these deposit fees are not sales-taxable, so taxes are not usually involved when refunding deposits to customers.
Failure to comply with these regulations can lead to fines or other penalties which can adversely affect your business’s finances and reputation. Although there isn’t a lot of information made available about the exact penalties for failing to charge bottle fees, they do include substantial fines and potential legal action.
Let’s explore these regulations state by state.
California (California Redemption Value – CRV)
California’s bottle deposit program, known as the California Redemption Value, or CRV, is run by CalRecycle: the California Department of Resources Recycling and Recovery.
According to CalRecycle’s website:
Beverages included:
- Aluminum
- Glass
- Plastic
- Bi-metal
- Beverage containers that are boxes, bladders, or pouches containing wine, distilled spirits, wine coolers, or distilled spirit coolers.
Amount of Deposit:
- 5 ¢ for containers less than 24 ounces
- 10 ¢ for containers 24 ounces or larger
- *Effective January 1, 2024: 25 ¢ for boxes, bladders or pouches containing wine, distilled spirits, wine coolers, or distilled spirit coolers.
Out of the 10 states that have a bottle bill program, California is the only one to charge sales tax on the fee itself if the beverage is taxable. So for example, if a can of soda is $1.00 and deposit fee is 5¢, then the sales tax is applied to the order total of $1.05. When the customer returns the can, the 5¢ is refunded, however the sales tax is not.
Learn how to add fees to your Shopify store.
Connecticut
Connecticut’s recycling program is overseen by the Connecticut Department of Energy and Environmental Protection (DEEP).
According to DEEP’s website:
Beverages included:
- Carbonated drinks less than 3 litres, such as beer, soda, and hard seltzer.
- Non-carbonated drinks less than 2.5 litres, including water, juice, tea, coffee, sports drinks, and kombucha.
- Containers greater than 150 mL, defined as any individual, sealed glass, metal, plastic bottle, can, jar, or carton containing a beverage.
Amount of Deposit: 10¢
Learn how to add fees to your Shopify store.
Hawaii
In Hawaii, the Department of Health (DOH) oversees the state’s recycling and waste management programs. This includes the Deposit Beverage Container Program.
According to DOH’s website:
Beverages included:
- Beverages: Soda, water, juice, coffee, tea, sports drinks, mixed spirits (under 15% alcohol), mixed wine (under 7% alcohol), beer, and malt beverages.
- Containers: Aluminum, bi-metal, glass, and plastic (PET and HDPE) containers of 68 fluid ounces or less.
- Excluded items include milk, wine, spirits (15% or more alcohol), medical foods, infant formula, concentrates, syrups, and beverages in pouches or cardboard containers.
Amount of Deposit: 5¢
Although there is limited information regarding fines and penalties for merchants who fail to charge Hawaiian bottle bill fees, distributors have faced thousands of dollars in fines in the past for failing to properly report bottle deposit fees. This precedent suggests that merchants should adhere to all aspects of the program to avoid hefty fines.
Learn how to add fees to your Shopify store.
Iowa
In Iowa, the Department of Natural Resources (DNR) oversees the state’s environmental programs, including the Beverage Containers Control Law.
According to DNR’s website:
Beverages included:
- Carbonated drinks. Such as soft drinks and mineral water
- Alcoholic beverages, including beer, wine, liquor, and “nips” bottles (50 mL or smaller).
- Boxed wine and tetra packs are not included.
Amount of Deposit: 5¢
As of January 1, 2023, the DNR can take action against businesses that don’t comply with its Bottle Bill laws. This includes issuing fines, pursuing legal action with assistance from the Attorney General in civil court, and, in some cases, treating violations as criminal offenses that could result in a criminal record.
Learn how to add fees to your Shopify store.
Maine
In Maine, the Department of Environmental Protection (DEP) oversees the state’s recycling and waste management programs, including the Beverage Container Redemption Program. Maine’s program covers a wide range of beverages and includes spirits and wine containers, which are often excluded in other states.
According to DEP’s website:
Beverages included:
- liquor and wine beverage containers greater than 50 mL
- beer, hard cider, wine coolers, wine & liquor nips less than 50 mL soda, or noncarbonated water beverage containers, and alcoholic or noncarbonated drinks sold in the State.
Amount of Deposit:
- Wine/liquor greater than 50mL: 15¢
- All others (including wine/liquor nips): 5¢
Although information regarding penalties and fines for merchants failing to charge bottle deposit fees is not publicly available, Maine Legislation indicates that violations of the bottle redemption process can result in fines ranging from $100 to $1,000. Merchants who fail to comply with these requirements may face similar penalties, with even potentially harsher penalties for repeated violations.
Learn how to add fees to your Shopify store.
Massachusetts
In Massachusetts, the Department of Environmental Protection (MassDEP) oversees the state’s Bottle Bill. In 2024, the bill was updated to include a wider range of bottles and containers adding noncarbonated beverages, wine, and spirits, which was meant to modernize the program.
According to MassDEP’s website:
Beverages included: carbonated soft drinks, beer, malt beverages, and sparkling water containers.
Amount of Deposit: 5¢
Failure to comply with this requirement can result in penalties. According to the Guide to the 1983 Bottle Bill for Consumers provided by the Massachusetts Department of Environmental Protection, anyone who violates the law may be subject to a civil penalty of up to $1,000 for each violation. This penalty could also apply to merchants who fail to charge the required deposit fees on applicable beverage containers.
Learn how to add fees to your Shopify store.
Michigan
In Michigan, the Department of Environment, Great Lakes, and Energy (EGLE) oversees the state’s Bottle Deposit Law. At the time of enactment in 1976, Michigan’s Bottle Bill had the highest deposit fee, which paved the way for Michigan to achieve the highest redemption rates in the country.
According to EGLE’s website:
Beverages included: Beer, malt drinks, carbonated soft drinks, soda, and mineral water.
Amount of Deposit: 10¢
Learn how to add fees to your Shopify store.
New York
In New York State, the Department of Environmental Conservation (DEC) oversees environmental programs, including the state’s Returnable Container Act:
According to DEC’s website:
Beverages included:
Carbonated soft drinks, energy drinks, juice with added sugar, carbonated tea, soda water, beer, malt beverages, mineral water (carbonated & non-carbonated), wine products, unsweetened water (flavored or enhanced).
Beverages not included:
Milk, wine, liquor, spirits, hard ciders, non-carbonated tea, sports drinks, juice, energy drinks, beverages in boxes/pouches, sugary waters.
Amount of Deposit: 5¢
The DEC is also responsible for enforcing the Bottle Bill. They have the authority to conduct audits and investigations to ensure compliance. Merchants found in violation may be subject to enforcement actions, including fines and legal proceedings.
To date, the largest penalty for violation of a US Bottle Bill has been administered by the DEC for failing to charge the 5 cents In 2018, a distributor in New Jersey selling products in New York was fined $550,000. The distributor was also required to suspend sales of regulated beverages in New York. rain.org
Learn how to add fees to your Shopify store.
Oregon
Oregon is the home of the Bottle Bill, as it was the first state to establish this type of law in 1972. The bottle fee model was groundbreaking as it lead to high recycling rates statewide and also reduced litter. Oregon became the premiere example to follow for the rest of the states.
In Oregon, the Oregon Beverage Recycling Cooperative (OBRC) serves as the primary organization overseeing Oregon Bottle Bill.
According to OBRC’s website:
Beverages included:
- Three litres or less:
- Water, carbonated drinks, beer, malt beverages, kombucha, hard seltzer.
- 4 ounces to 1.5 liters:
- Non-alcoholic drinks (tea, coffee, juice, energy drinks), alcoholic beverages (hard cider up to 8.5% ABV), marijuana and hemp beverages.
Amount of Deposit: 5¢
The Oregon Liquor and Cannabis Commission (OLCC) can impose a fine ranging from $50 to $500 per violation of the Bottle Bill. If the violation occurs daily, the fine is calculated on a per-day basis. This could apply to merchants who fail to charge the required deposit fee.
Learn how to add fees to your Shopify store.
Vermont
Vermont’s Department of Environmental Conservation (DEC) is responsible for overseeing the Beverage Container and Redemption Law. This law was enacted in 1973 making Vermont one of the earliest states to adopt a recycling program like this.
According to the DEC’s website:
Beverages included:
- Beer, wine coolers, other malt beverages, and pre-mixed spirits cocktails
- Carbonated non-alcoholic beverages, including sodas, sparkling waters and juices, and carbonated sports and energy drinks
- Liquor and spirits
Beverages not included:
- Wine and hard cider
- Non-carbonated non-alcoholic beverages
Amount of Deposit:
- Liquor and spirit bottles > 50 ml: 15¢
- All other beverage containers: 5¢
In Vermont, the Beverage Container and Redemption Law mandates that merchants and distributors collect a deposit fee on eligible beverage containers. The Vermont Agency of Natural Resources (ANR) has the authority to impose civil penalties for violations of the Bottle Bill, typically involving monetary fines for merchants.
Learn how to add fees to your Shopify store.
How to Add Bottle Deposit Fees to Your Shopify Store
In a bottle bill state, the bottle deposit fee flows from the distributor to the merchant, and then from the merchant to the customer. The bottle deposit is refunded to the customer when the bottle is returned to the merchant.
This is a complex process. For it to work, merchants need the ability to charge fees that are clearly displayed on transaction records so customers understand what the charge is for. The process of charging and refunding these fees must be well-coordinated, so merchants can manage the deposit refund process smoothly and avoid penalties.
The options to add Bottle Fees to your Shopify store natively aren’t great…
Shopify doesn’t have great ways to add fees to your store natively:
- You could mark up calculated shipping rates to build in a fee – but this doesn’t adapt to the number of items purchased.
- You could manually add the fee into the product’s price so it’s an inclusive fee – but this is cumbersome and may not be clearly communicated to customers
- You could create fee variants or separate products for fees, and then instruct customers to select or add these manually – but this can lead to a clunky user experience. Customers could also avoid paying fees altogether.
Using an app is the best way to add Bottle Deposit Fees
The best way to add fees to your store is to use an app. It simplifies the process of adding and managing fees with a quick-and-easy setup that usually requires no coding experience. Apps often come with dedicated support to assist with the setup and troubleshooting as well.
Apps are purpose-built to transparently display fees to customers so they know what they’re paying for. It is important to be transparent with fees because hidden fees or inclusive fees can undermine customer trust. Fee transparency reduces misunderstandings and disputes over order totals, saving you time.
Using an app will also provide you with better reporting methods to easily track your bottle deposit fees, so you can track how much has been charged over a period. Reporting fees is an important part of the process and some states can also penalize merchants and distributors if fees are not properly reported. Also, if you accept bottle returns from customers, then better reporting will make it easier for you to claim distributor handling fees.
We’ve compared some of the top Fees apps for Shopify and found Magical Product Fees was the best app for charging US bottle bills on your Shopify store.
The app allows you to set up fixed or percentage-based fees which will then apply to the order subtotal. If you’re located in California, you will need to charge tax on the fee, so you’ll need a Shopify Plus Plan for this app to work for you.
Displaying Bottle Deposit Fees to Customers
Fee transparency is an important part of charging fees. Hidden fees at checkout are a top reason for shopping cart abandonment on Shopify. It’s also highly advised that bottle deposit fees be displayed clearly on its own line item as failing to itemize the fee can lead to compliance issues and potential fines.
By using an app to clearly display fees throughout the shopping process, customers will better understand their fee total leading to no surprises at checkout.
A few tips to make sure your fees are transparent:
- Include fees on product pages so customers see them before adding items to their cart.
- Clearly label fees, such as Bottle Deposit or Container Fee so customers understand the charge and its purpose.
- Provide an itemized breakdown of fees at checkout so that customers aren’t surprised by additional costs.
Here is an example of how your fees should be displayed on your Shopify store:
Handling Multi-State Sales and Location-Based Fees
If you are a distributor or merchant located in a non-bottle bill state, selling beverages to customers in a bottle-bill state, you are still required to collect bottle fees.
Distributors will also need to register with the environmental agency of the state they are selling in as a deposit initiator. (Merchants typically won’t need to do this.) Distributors will also likely be required to remit unclaimed bottle deposit fees to the agency.
When you’re selling bottles in multiple states that may or may not have bottle deposit fee laws, collecting fees becomes more complicated. In these scenarios, it’s imperative that a Shopify store is set up correctly so that the correct customers are being charged the correct amount.
In the Community forums, a Shopify Partner points out: “It is possible to add a fee or surcharge to products or an entire order based on the location of the customer. However this does require the use of Shopify Checkout Extensions which are currently reserved for Shopify Plus customers. If you are on Shopify Plus it is possible with an app like Magical Product Fees.”
Having spoken to hundreds of Shopify merchants over the years, I know that Shopify Plus simply isn’t within the budget for most stores. Every week, I hear from merchants asking if there’s a workaround to add location-based fees without upgrading to Shopify Plus, but unfortunately, there isn’t a solution available at this time. I’m hopeful that in the near future, we’ll be able to provide a way for non-Shopify Plus stores to add location-based fees.
Conclusion
Setting up your Shopify store to charge bottle fees in the US is a legal requirement. Although Shopify doesn’t have native solutions to charge these types of fees, using an app can make the setup process and the management of your fees a breeze.
With an app, you can make sure your fees are clearly communicated to customers, have access to better reporting so you can easily summarize and remit your fees, and confidently manage the return process if you are a merchant who accepts returns.
The penalties and fines for non-compliance can be quite severe. It’s not worth the risk to have a janky system set up on your store to charge fees. An app can help you manage your deposit fees worry-free and avoid compliance issues.
You also do your part to take care of the environment. The presence of a bottle bill in a state leads to MUCH higher recycling rates compared to states without a bottle bill – you will be contributing to that sustainability. It’s a win for your business and the environment!
Further Reading
Shopify Community – Adding a fee for products sold in specific states
United States Environmental Protection Agency – Recycling Basics and Benefits
Connecticut Department of Energy and Environmental Protection (DEEP)
Hawaii Department of Health (DOH)
Iowa Department of Natural Resources (DNR)
Maine Department of Environmental Protection (DEP)
Massachusetts Department of Environmental Protection (MassDEP)
Michigan Department of Environment, Great Lakes, and Energy (EGLE)
New York Department of Environmental Conservation (DEC)
Oregon Beverage Recycling Cooperative (OBRC)
Vermont’s Department of Environmental Conservation (DEC)
Magical Product Fees
The Magical Product Fees app is a fast and easy way to build, customize, and attach fees to products or entire orders.