SF 2842

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/14/2023 08:06am

A bill for an act
relating to taxation; imposing a gross revenues tax on entities manufacturing and
selling products containing PFAS; creating a xx cleanup account in the special
revenue fund; establishing the XX Advisory Commission; requiring reports;
proposing coding for new law in Minnesota Statutes, chapter 295.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [295.80] PFAS GROSS REVENUES TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of revenue.
new text end

new text begin (c) "Gross revenues" means the total amounts received in money or otherwise by the
manufacture or retail sale of products containing PFAS in this state.
new text end

new text begin (d) "Manufacturer" means any person engaging in the production, preparation,
propagation, conversion, or processing of products containing PFAS, either directly or
indirectly, including packaging or repackaging, or any person whose brand name is affixed
to the product.
new text end

new text begin (e) "Perfluoroalkyl and polyfluoroalkyl substances" or "PFAS" means substances that
include any member of the class of fluorinated organic chemicals containing at least one
fully fluorinated carbon atom.
new text end

new text begin (f) "Person" means an individual, partnership, limited liability company, corporation,
association, or public or private organization of any kind. Person does not include a
governmental unit or agency, or instrumentality of a government entity.
new text end

new text begin (g) "Products containing PFAS" means products in which PFAS are deliberately added
during the manufacture of a product where the continued presence of PFAS is desired in
the final product or one of the product's components to perform a specific function.
new text end

new text begin (h) "Retailer" means any person making sales, leases, or rentals of products containing
PFAS.
new text end

new text begin Subd. 2. new text end

new text begin Nexus required. new text end

new text begin (a) For a manufacturer, a person who maintains within this
state, directly or by a subsidiary or an affiliate, a plant, center, office, warehouse, or other
place where manufacturing occurs is deemed to have minimum contacts in Minnesota and
is subject to the tax imposed under this section.
new text end

new text begin (b) For a retailer, a person who is required to collect and remit the tax imposed under
chapter 297A is deemed to have minimum contacts in Minnesota and is subject to the tax
imposed under this section.
new text end

new text begin Subd. 3. new text end

new text begin Tax imposed. new text end

new text begin (a) For a manufacturer who has nexus in Minnesota under
subdivision 2, a tax equal to 50 percent of gross revenue is imposed on revenue derived
from products containing PFAS manufactured in Minnesota and sold to a distributor.
new text end

new text begin (b) For a retailer who has nexus in Minnesota under subdivision 2, a tax equal to 50
percent of gross revenue is imposed on revenue derived from the retail sale of products
containing PFAS in Minnesota.
new text end

new text begin Subd. 4. new text end

new text begin Reporting requirements. new text end

new text begin A person subject to the tax imposed by this section
must submit a monthly informational report in the form and manner prescribed by the
commissioner. No payment of any tax is required to be remitted with the report. The report
must be filed on or before the tenth day following the end of each calendar month, regardless
of whether or not the person manufactured or sold any products containing PFAS during
the previous month, unless the commissioner determines that a longer filing period is
appropriate for a particular person.
new text end

new text begin Subd. 5. new text end

new text begin Administration. new text end

new text begin Unless specifically provided otherwise, the audit, assessment,
refund, penalty, interest, enforcement, collection remedies, appeal, and administrative
provisions of chapters 270C and 289A, apply to the tax imposed under this section.
new text end

new text begin Subd. 6. new text end

new text begin Returns; payment of tax. new text end

new text begin (a) A person owing tax under this section must
report the tax on a return prescribed by the commissioner and must remit the tax on an
annual basis in a form and manner prescribed by the commissioner. The return and the tax
must be filed and paid using the filing cycle and due dates provided for taxes imposed under
section 289A.20, subdivision 1, and chapter 290.
new text end

new text begin Subd. 7. new text end

new text begin Credit for taxes paid. new text end

new text begin A person that has paid taxes to another jurisdiction
measured by gross revenues and is subject to tax under this section on the same gross
revenues is entitled to a credit for tax legally due and paid to another jurisdiction to the
extent of the lesser of:
new text end

new text begin (1) the tax actually paid to the other jurisdiction; or
new text end

new text begin (2) the amount of tax imposed by Minnesota on the gross revenues subject to tax in the
other taxing jurisdictions.
new text end

new text begin Subd. 8. new text end

new text begin Interest on overpayments. new text end

new text begin Interest must be paid on an overpayment refunded
or credited to the taxpayer in the manner provided in section 289A.56, subdivision 2.
new text end

new text begin Subd. 9. new text end

new text begin Deposit of revenues. new text end

new text begin The commissioner must deposit all revenues, including
penalties and interest, derived from the tax imposed by this section in the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

new text begin [295.81] CLEANUP ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The purpose of this account is to provide funds for environmental
cleanup around the state.
new text end

new text begin Subd. 2. new text end

new text begin Account creation. new text end

new text begin The xx cleanup account is hereby established in the special
revenue fund.
new text end

new text begin Subd. 3. new text end

new text begin Transfer of revenues. new text end

new text begin (a) By July 15 annually, an amount equal to the funds
raised by the tax imposed under section 295.80 must be transferred into the xx cleanup
account.
new text end

new text begin (b) To the extent the commissioner of management and budget determines that revenues
are available for transfer under paragraph (a) for the fiscal year, those amounts are
appropriated from the general fund for deposit in the xx cleanup account.
new text end

new text begin Subd. 4. new text end

new text begin Use of funds. new text end

new text begin Funds in the xx cleanup account must be managed by the State
Board of Investment and used for purposes prescribed by the XX Advisory Commission
established under section 295.82.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

new text begin [295.82] XX ADVISORY COMMISSION.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The XX Advisory Commission is established. The
purpose of the commission is to develop and recommend to the State Board of Investment
the proper use of funds in the xx cleanup account.
new text end

new text begin Subd. 2. new text end

new text begin Membership; meetings. new text end

new text begin (a) The commission consists of the following members:
new text end

new text begin (1) two representatives appointed by the speaker of the house;
new text end

new text begin (2) two representatives appointed by the minority leader of the house of representatives;
new text end

new text begin (3) two senators appointed by the senate majority leader;
new text end

new text begin (4) two senators appointed by the senate minority leader; and
new text end

new text begin (5) the commissioner of natural resources or the commissioner's designee.
new text end

new text begin (b) Each appointing authority must make appointments by January 31 of the regular
legislative session in the odd-numbered year.
new text end

new text begin (c) If the chair of the house or senate committee with primary jurisdiction over
environment and natural resources is not an appointed member, the chair is an ex officio,
nonvoting member of the commission.
new text end

new text begin (d) The voting members of the commission shall elect a chair and vice-chair. An appointee
designated by the house shall convene the commission's first meeting. Decisions of the
commission must be made by majority vote. The Department of Natural Resources must
provide office space and administrative support to the commission.
new text end

new text begin Subd. 3. new text end

new text begin Meetings. new text end

new text begin (a) The commission must meet in intervals established by the
commission at its first meeting.
new text end

new text begin (b) Meetings of the commission are subject to chapter 13D.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin The commission must make its recommendations on the proper use
of money in the xx cleanup account in a report to the State Board of Investment each year
no later than January 1.
new text end

new text begin Subd. 5. new text end

new text begin Terms; vacancies. new text end

new text begin (a) Members of the commission serve a term beginning
upon appointment and ending at the beginning of the regular legislative session in the next
odd-numbered year. The appropriate appointing authority must fill a vacancy for a seat of
a current legislator for the remainder of the unexpired term. Members may be removed or
replaced at the pleasure of the appointing authority.
new text end

new text begin (b) If a commission member ceases to be a member of the legislative body from which
the member was appointed, the member vacates membership on the commission.
new text end

new text begin Subd. 6. new text end

new text begin Officers. new text end

new text begin The chair and vice-chair must alternate every two years between
members of the house of representatives and senate. The chair and vice-chair may not be
from the same legislative chamber.
new text end

new text begin Subd. 7. new text end

new text begin Expenses. new text end

new text begin The members of the commission and its staff shall be reimbursed
for all expenses actually and necessarily incurred in the performance of their duties.
Reimbursement for expenses incurred shall be made in accordance with policies adopted
by the Legislative Coordinating Commission.
new text end

new text begin EFFECTIVE DATE; SPECIAL PROVISIONS. new text end

new text begin (a) This section is effective the day
following final enactment.
new text end

new text begin (b) Appointing authorities for the commission must make initial appointments by January
15, 2024. The speaker of the house must designate one member of the commission to convene
the first meeting of the commission by July 1, 2024. The first report of the commission is
due on December 15, 2024.
new text end