HF4948

Purpose

The bill adds a new tax on plastic beverage bottles to raise money for water infrastructure projects in Minnesota. The money collected would go into a newly created Water Infrastructure Account to fund related projects.

Key Provisions and Definitions

• Definitions:
  • Beverage: any drinkable liquid intended for human consumption, excluding drugs regulated by the FDA and infant formula.
  • Bottle distributor: the first person who sells a taxable plastic bottle to a retailer in Minnesota.
  • Commissioner: the Minnesota commissioner of revenue.
  • Taxable plastic bottle: a formed or molded container made mostly of plastic resin, that is sealed, contains a beverage, and holds less than three liters when full.
• New tax: An excise tax is imposed on bottle distributors for each taxable plastic bottle sold to a Minnesota retailer.
• Payment: The tax is payable quarterly, under rules set by the commissioner.
• Tax rate: The tax is assessed at a per-bottle rate (the exact cents-per-bottle amount is not specified in the provided text).
• Use of proceeds: All tax receipts must be deposited into the Water Infrastructure Account created in the bill.
• Sunset/expiration: The tax expires on December 31, 2031.

Administration and Implementation

• Administration: The commissioner of revenue administers the tax and the related payment requirements.
• Legislation coding: The bill creates new law within Minnesota Statutes chapter 297H (to cover the plastic bottle tax and related provisions).

Significance and Changes to Law

• What changes: Introduces a new source of revenue by taxing plastic beverage bottles and directs funds specifically to water infrastructure needs.
• Scope: Applies to bottle distributors selling taxable plastic bottles to retailers in Minnesota and defines which bottles are taxable.
• Time-bound: The tax is set to expire at the end of 2031, unless renewed or extended.

Summary of Impact

• Financial impact: Creates a new revenue stream dedicated to water infrastructure projects.
• Administrative impact: Adds requirements for bottle distributors to pay the tax quarterly and for the Department of Revenue to collect and deposit the funds into the new Water Infrastructure Account.
• Legal impact: Establishes new definitions and a new section (297H.50) of the Minnesota Statutes to govern the tax and the use of proceeds.

Relevant Terms - plastic bottle excise tax - water infrastructure account - 297H.50 - 297H.51 - bottle distributor - taxable plastic bottle - beverage - less than three liters - commissioner of revenue - quarterly tax payments - rate per bottle - expiration 2031 - Minnesota Statutes chapter 297H - tax proceeds to water infrastructure