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