Connecticut Lawmakers Aim to Curb Out-of-State Bottle Deposit Fraud

Proposed legislation would raise fines on non-residents redeeming bottles and cans across state lines.

Feb. 26, 2026 at 9:50pm

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Connecticut lawmakers are considering new legislation to crack down on out-of-state residents who travel to Connecticut to take advantage of the state's higher 10-cent bottle deposit and redeem containers for cash. Officials say this practice is costing the state and local businesses millions of dollars. The proposed solution includes raising fines on non-residents and requiring manufacturers to use different barcodes for different states to make it harder to redeem containers across state lines.

Why it matters

Connecticut's bottle deposit law is intended to incentivize recycling and reduce litter, but the influx of out-of-state residents exploiting the higher deposit rate is undermining those goals and costing the state and local businesses significant revenue. Lawmakers are seeking ways to close this loophole and ensure the bottle deposit system benefits Connecticut residents as intended.

The details

Under Connecticut's bottle deposit law, consumers pay a 10-cent deposit on bottles and cans, which they can redeem for cash when returning the containers. However, New York's deposit is only 5 cents, leading some New York residents to travel to Connecticut to take advantage of the higher redemption rate. Redemption centers and wholesalers are absorbing these losses since the state only reimburses them for a percentage of what they take in, and a cap limits how much they can recover. One redemption center owner said they have already started requiring customers to show ID to prove residency, turning away about 40 people who couldn't provide proof.

  • The Connecticut legislature is currently considering new legislation to address this issue.
  • The proposed legislation would raise fines on out-of-state residents caught redeeming bottles and cans in Connecticut.

The players

Connecticut Lawmakers

State legislators in Connecticut who are proposing new legislation to crack down on out-of-state bottle deposit fraud.

Bob Hanna and Lynn Little

Owners of Three Veterans LLC, a redemption center in New Milford, Connecticut that has started requiring customers to show ID to prove residency.

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What they’re saying

“We have turned away about 40 people who were unable to provide proof of residency and/or they had a license plate on their car when they came in. As soon as they came in, it was a red flag.”

— Bob Hanna, Co-owner, Three Veterans LLC

What’s next

The Connecticut legislature is expected to vote on the proposed legislation to raise fines on out-of-state bottle deposit fraud in the coming weeks.

The takeaway

This case highlights the need for states with bottle deposit laws to find ways to prevent cross-border fraud and ensure the system benefits local residents as intended. While raising fines is one approach, other solutions like requiring unique barcodes for each state could also help address this issue.