HF3322

Purpose of the Bill

The bill proposes an excise tax on plastic bottles in Minnesota. The purpose is to generate revenue to support water infrastructure projects through the imposition of a tax on plastic bottles sold by distributors and beverage producers.

Main Provisions

• Plastic Bottle Excise Tax: The bill introduces a tax specifically on plastic bottles used for beverages. These bottles must be primarily composed of plastic resin, sealed, contain a beverage, and hold less than three liters when full.
• Tax Rate: The tax is set at ten cents per taxable plastic bottle.
• Who Pays the Tax: The tax is levied on the "bottle distributor," defined as a person who sells taxable bottles to retailers in Minnesota or a beverage producer who retails their product.
• Tax Collection: Taxes are collected quarterly and must be submitted in the form and manner determined by the state commissioner of revenue.
• Revenue Use: Money collected from this tax is to be deposited into the state’s water infrastructure account.
• Termination: The tax provision is set to expire on December 31, 2030.

Significant Changes to Existing Law

This bill introduces a new taxation measure specifically targeting plastic beverage bottles, creating a financial incentive to reduce plastic waste and support environmental sustainability projects related to water infrastructure.

Relevant Terms

• Excise tax
• Plastic bottles
• Beverage producer
• Retail sales
• Water infrastructure account