HF1635

This bill, H.F. No. 1635, proposes a pollution control surcharge on certain businesses in Minnesota. The key points of the bill are:

1. Purpose: The bill aims to impose a surcharge on businesses and individuals involved in pollution violations, as determined by the Minnesota Pollution Control Agency (MPCA).

2. Definitions:

   • "Pollution control business" refers to any entity that has been certified by the MPCA as having at least one delinquent pollution control violation.
   • A pollution control violation includes violations of various environmental laws and regulations in Minnesota Statutes.

3. Surcharge Rates:

   • A 5% surcharge is imposed on the net pollution control income of:
     • Corporations involved in pollution control violations.
     • Individuals, trusts, and estates that derive income from pollution control businesses.

4. Notification and Compliance Mechanism:

   • The MPCA Commissioner must notify businesses and individuals of violations and specify the necessary remedial actions.
   • If the business rectifies the issue within the given timeframe, the commissioner will certify that the violation has been remedied.
   • If the business fails to comply, the MPCA will issue a delinquency notice, making the entity subject to the surcharge for that tax year.

5. Annual Reporting & Administration:

   • Every year, by January 31, the MPCA must submit a list of pollution violators to the Minnesota Department of Revenue.
   • The Minnesota Department of Revenue will administer, enforce, collect, and ensure compliance with this pollution control surcharge similarly to existing state taxes.

In summary, this bill seeks to financially penalize businesses and individuals who repeatedly violate pollution laws by imposing a 5% surcharge on their taxable income if they fail to address violations within the required time.