SF5081

Purpose

• Create a new plastic bottle excise tax to fund water infrastructure projects in Minnesota. The tax revenue goes to a dedicated water infrastructure account.

Key definitions (to understand the bill)

• Beverage: a drinkable liquid intended for human consumption, with some exclusions.
• Bottle distributor: the first person who sells a taxable plastic bottle to a retailer in Minnesota.
• Taxable plastic bottle: a formed or molded plastic bottle that is sealed, contains a beverage, and holds less than three liters when full.
• Commissioner: the commissioner of revenue.
• Water infrastructure account: a special fund established to hold the tax proceeds (and used for water-related projects).

Main provisions

• Tax imposed: A tax is charged to bottle distributors for each taxable plastic bottle sold to a retailer in Minnesota.
• Payment timing: The tax is payable quarterly, following a format and process set by the commissioner of revenue.
• Tax rate: The tax is assessed at a rate of cents per taxable plastic bottle sold. (Note: the exact cent amount is not specified in the text provided.)
• Use of proceeds: All tax proceeds go into the water infrastructure account established under section 297H.51.
• Expiration: The tax section expires on December 31, 2031.

Administration and enforcement

• Administration: The commissioner of revenue administers and collects the tax.
• Scope: Applies to bottle distributors selling taxable plastic bottles to Minnesota retailers.

Significance and impact

• This bill creates a new funding mechanism to support water infrastructure projects through a bottle-based excise tax.
• It imposes a sunset date, meaning the tax would expire unless renewed or amended after December 31, 2031.

Relationship to existing law

• Adds a new provision to Minnesota Statutes chapter 297H (Plastic Bottles Excise Tax) and defines related terms and procedures.
• Establishes a dedicated funding account (water infrastructure account) for the tax revenue.

Relevant terms - plastic bottle excise tax - bottle distributor - taxable plastic bottle - beverage - commissioner of revenue - water infrastructure account - Minnesota - payable quarterly - Section 297H.50 - Section 297H.51 - expiration December 31, 2031