HF 4948
Introduction - 94th Legislature (2025 - 2026)
Posted on 04/16/2026 04:11 p.m.
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A bill for an act
relating to taxation; proposing a plastic bottle excise tax to fund water infrastructure
projects; establishing an account; appropriating money; proposing coding for new
law in Minnesota Statutes, chapter 297H.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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[297H.50] PLASTIC BOTTLES EXCISE TAX.
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new text begin Subdivision 1. new text end
new text begin Definitions. new text end
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(a) For purposes of this section, the following terms have
the meanings given.
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(b) "Beverage" means a drinkable liquid intended for human oral consumption, excluding:
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(1) a drug regulated under the federal Food, Drug, and Cosmetic Act, United States
Code, title 21, section 301, et seq.; or
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(2) infant formula.
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(c) "Bottle distributor" means the first person who sells a taxable plastic bottle to a
retailer in Minnesota.
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(d) "Commissioner" means the commissioner of revenue.
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(e) "Taxable plastic bottle" means a formed or molded container composed primarily
of plastic resin that:
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(1) is sealed;
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(2) contains a beverage; and
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(3) holds less than three liters when full.
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new text begin Subd. 2. new text end
new text begin Tax imposed. new text end
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An excise tax is imposed on bottle distributors for each taxable
bottle sold to a retailer in Minnesota. The tax is payable quarterly and in the form and manner
prescribed by the commissioner.
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new text begin Subd. 3. new text end
new text begin Rate of tax. new text end
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The excise tax is imposed at a rate of ....... cents per taxable plastic
bottle sold.
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new text begin Subd. 4. new text end
new text begin Use of proceeds. new text end
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The commissioner must deposit proceeds from the tax in the
water infrastructure account established in section 297H.51.
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new text begin Subd. 5. new text end
new text begin Expiration. new text end
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This section expires December 31, 2031.
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new text begin EFFECTIVE DATE. new text end
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This section is effective January 1, 2027.
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Sec. 2.
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[297H.51] BOTTLE TAX REVENUE DISTRIBUTIONS FOR WATER
INFRASTRUCTURE.
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new text begin Subdivision 1. new text end
new text begin Definition. new text end
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For purposes of this section, "board" means the board of the
Public Facilities Authority.
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new text begin Subd. 2. new text end
new text begin Account established. new text end
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The water infrastructure account is established in the
special revenue fund in the state treasury. The account consists of money deposited under
section 297H.50, money provided by law, and other money donated, allotted, transferred,
or otherwise provided to the account. Earnings, including interest, dividends, and other
earnings arising from assets of the account, must be credited to the account. The board must
manage the account.
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new text begin Subd. 3. new text end
new text begin Appropriation. new text end
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Money in the account is appropriated to the board for the
purposes of subdivision 4.
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new text begin Subd. 4. new text end
new text begin Eligible expenditures. new text end
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Money in the water infrastructure account must be used
by the board only to fund Public Facilities Authority projects eligible under sections
446A.072, 446A.073, 446A.077, 446A.082, and other water infrastructure projects approved
by the board.
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new text begin Subd. 5. new text end
new text begin Expiration. new text end
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This section expires after all revenues in the water infrastructure
account as of January 1, 2032, have been distributed in grants awarded under this section.
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new text begin EFFECTIVE DATE. new text end
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This section is effective January 1, 2027.
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