Keg Deposit Guidance

Beer Keg Deposit and Refund Requirements for Suppliers and Wholesalers

Administrative Rule R 436.1629 requires the collection of a refundable deposit on beer kegs with a capacity over 5 gallons when sold by a supplier licensee (Brewer, Micro Brewer, or Outstate Seller of Beer licensee) to a Wholesaler licensee or by a Wholesaler licensee to a retailer licensee (Class C, B-Hotel, Tavern, Club, Specially Designated Merchant (SDM), or another retailer licensee that may sell beer). The rule also requires a refundable deposit to be paid back as a cash refund to licensee returning an empty beer keg.

• A supplier licensee must collect a refundable beer keg deposit when selling a beer keg to a Wholesaler licensee.
  • A supplier licensee must collect from a Wholesaler licensee a minimum refundable deposit of at least $30.00 per keg. The refundable deposit may be more than $30.00.
  • The supplier licensee must pay to the Wholesaler licensee a cash refund, equal to the refundable deposit collected from the Wholesaler licensee, when a keg has been returned to the supplier licensee by the Wholesaler licensee.

• A Wholesaler licensee must collect a refundable beer keg deposit when selling a beer keg to a retailer licensee.
  • A Wholesaler licensee must collect from a retailer licensee a refundable deposit that is the same amount of the deposit per keg that the Wholesaler licensee paid the supplier licensee. For example, if a Wholesaler licensee paid a refundable beer keg deposit of $35.00 per keg to a suppler licensee, the Wholesaler licensee must collect a $35.00 per keg refundable beer keg deposit from the retailer licensee.
  • The Wholesaler licensee must pay to the retailer licensee a cash refund, equal to the refundable deposit collected from the retailer licensee, when a keg has been returned to the Wholesaler licensee by the retailer licensee.

• A supplier licensee may rent beer kegs from a third-party keg company, but the supplier licensee is still responsible under the Administrative Rule to collect the returnable keg deposit from a Wholesaler licensee and pay the cash refund when the keg is returned by a Wholesaler licensee. Likewise, a Wholesaler licensee is responsible under the Administrative Rule to collect the returnable keg deposit from a retailer licensee and pay the cash refund when the keg is returned by a retailer licensee, regardless of whether the keg is owned by a third-party keg company.