New Jersey Wants to Add 10 Cent Per Can and Bottle Beverage Recycling Tax

Trenton, NJ – If a new bill introduced in Trenton passes, consumers will soon be charged a 10-cent per container tax on all cans, bottles, and single-use beverage containers. That would raise the cost of a twelve-pack of soda by $1.20.

Here’s the catch: you can only be reimbursed for up to $25 daily on returns, regardless of how many you buy. The state would keep any funds not dispersed.

“In addition to the moneys disbursed thereto from the Beverage Container Deposit Fund, the Clean-Up and Redevelopment Trust Fund would also be credited with all penalty and restitution amounts that are imposed and collected by a court for violations of the bill’s provisions.  For each of the three fiscal years next following the bill’s effective date, the first $15 million annually deposited in the trust fund is to be disbursed, in equal amounts, to eight different clean-up and redevelopment funds currently existing in the State and identified in the bill.  Of the moneys remaining in the trust fund in those first three fiscal years, and of the total sum of moneys deposited in the trust fund in the fourth and each subsequent fiscal year following the bill’s effective date, 80 percent of such moneys are to be equally disbursed, on an annual basis, to the eight different clean-up and redevelopment funds identified in the bill, and 10 percent of such moneys are to be disbursed to the Community Pollution Prevention Grant Fund, newly established pursuant to the bill. ,” the bill reads.

Senators Raj Mukherji (District 32) and Andrew Zwicker (District 16), along with co-sponsor Senator B. Smith, have introduced the “Beverage Container Deposit Act” in New Jersey. This bill seeks to establish a container deposit and refund system, encouraging the return of used beverage containers to manufacturers for reuse, recycling, or proper disposal.

 To facilitate the return of beverage containers under the bill, each dealer who sells filled returnable beverage containers for off-site consumption would be required to provide, either on the premises where sales are made or within 100 yards thereof, a reverse vending machine or other convenient means by which empty returnable containers may be returned and a cash refund issued to the person who is returning them.  

Starting two years after enactment, every beverage container sold in the state must:

1. Be a returnable container.
2. Have a refund value of $0.10.
3. Be clearly marked with the state’s name and the refund value.
4. For metal containers, ensure no part detaches when opened.

Manufacturers, distributors, and dealers failing to comply will face civil penalties ranging from $100 to $1,000 per day of violation, plus restitution for resulting losses.

The bill requires distributors to originate a $0.10 deposit on containers sold to dealers, who will then charge consumers this deposit. Dealers must refund the deposit upon return of the empty container, regardless of where it was purchased. Dealers can limit daily refunds to $25 per person.

Distributors must accept returned containers from dealers, refunding them in cash, and then ensure the containers are returned to manufacturers for proper handling. Fraudulent activities related to container redemption will incur restitution payments for losses caused.

Dealers selling beverages for off-site consumption must provide a reverse vending machine or other means for container returns within 100 yards of their premises. Violations will result in a $50 daily penalty.

Distributors are required to offer collection services for returnable containers from dealers and establishments, with collection frequency based on the establishment’s on-site consumption capacity.

The bill establishes four new funds:

1. Beverage Container Deposit Fund: Receives unclaimed deposits from under-redeemers.
2. Beverage Container Deposit Enforcement Fund: Supports State Police enforcement efforts.
3. Clean-Up and Redevelopment Trust Fund: Funds environmental cleanup and redevelopment projects.
4. Community Pollution Prevention Grant Fund: Provides grants for local pollution prevention and cleanup efforts.

The Department of Environmental Protection (DEP) will authorize beverage container redemption centers to facilitate returns, supplementing dealer-based returns. Distributors must also provide equipment and services to ensure proper sorting, collection, and refund issuance for returned containers.

The “Beverage Container Deposit Act” aims to enhance recycling efforts, reduce environmental waste, and ensure proper disposal of beverage containers across New Jersey.