Expansion of Bottle Deposit Law in New York
Issue Overview: Former Gov. Spitzer proposed to expand the bottle deposit law to include other products such as bottled water, juice and tea. While at least outwardly aimed at the commendable goal of increasing recycling, the law also would have created a windfall for the state on unredeemed deposits, while creating a costly and messy logistical nightmare for small retailers.
Curiously, the proposed law would have created an exemption for small retailers in New York City, but with no such consideration for businesses upstate, who would have been burdened with the expense and mess of handling a massive increase in returns. Vending machine operators also would be hit hard if this proposal goes forward, as many of them will be unable to change their price point and will be forced to absorb it themselves.
NFIB Position: We adamantly opposed this proposal. According to New Yorkers for Real Recycling Reform, the bottle tax would have taken a bite out of consumers' wallets, adding up to 15 cents to the cost of a bottle of some beverages. Under this scenario a case of 24 bottles of water that currently sells for $4.99 would have increased to $8.59, a hike of 72 percent.
Issue Status: This expansion of the bottle bill was rejected by the Legislature last year and again this year as part of the budget. This was a victory for small business and consumers. However, efforts continue to advance this proposal as stand-alone legislation, which we also succeeded in defeating this year and last.
