OP you've absolutely done the right thing. Have you changed the locks? Because with his dad presumably now frantically looking for ways to get out of carrying the can you've been struggling with for years
then beware you don't come home to him reinstalled after dad driving him home!
Bottom line is this. He hasn't 'been going off the rails for a while' -no, he is firmly OFF the rails and at 17, a bloody massive change in the status quo is needed if anything, ever, is going to save the situation, because it's clear that whatever has been happening hasn't worked. My thinking would be that no, he hasn't responded to 'consequences' because to a near-adult this far down the road to being entirely sociopathic and un-socialised, what you see as 'consequences' to him clearly aren't. Disapproval? Fuck off. No money? Will just steal it. Not allowed to have friends over? Will break them in.
At this 'stage', more is needed. As they say - if you keep doing the same things you'll get the same results. More than that, it's all time-dependant. Soon he'll be 18. Much less help available. No safety nets. Nothing but prison beckoning, really.
So what does count as a consequence for a person with this mentality - kicking out is the only thing. Think about it, up til now he's essentially still been cared for as a young child despite everything. He could do anything he liked with no 'brake' as at the end of the day, his bed is there, in a warm house. Take that away and he is an adult. He wants a warm bed - he has to think about how to do that. He is actually responsible for himself and his behaviour has an actual consequence.
He will be thinking in a very different way this morning. He will be wondering what is going to happen to him. This has never been something he's needed to worry about before...
OP stay firm. Definitely don't ever let him back - it's not about learning a lesson. It's about seeing a person who needs to be made to take this level of responsibility for themselves and their behaviour, permanently, to make them re-learn how to live as a normally socialised adult. Bottles of piss? Jesus.
And, to say it again - he's 17. SS were lying about you being required to take him back, and yes there's less help, but there is some - and also, if he gets into trouble as a reaction to this and the police become involved then he is currently still a minor and that is good. If you'd struggled along til next year, his options would be very different.
Take his stuff to his dad's.
If somehow he gets in while you're at work, keep calm, have a locksmith ready and change the locks as soon as he goes out.
You are quite possibly turning around a life that would have ended up criminal.