SF2129

This Minnesota Senate bill (S.F. No. 2129) proposes a gross revenues tax on manufacturers and retailers selling products containing perfluoroalkyl and polyfluoroalkyl substances (PFAS) in the state. The key provisions of the bill include:

1. Tax Imposition:

   • A 50% gross revenue tax is imposed on manufacturers producing PFAS-containing products in Minnesota.
     
   • A 50% gross revenue tax is also imposed on retailers selling PFAS-containing products in the state.

2. Definitions:

   • PFAS refers to fluorinated chemicals with at least one fully fluorinated carbon atom.
     
   • "Manufacturer" includes any entity involved in producing or packaging PFAS-containing products.
     
   • "Retailer" includes businesses selling, leasing, or renting PFAS-containing products in Minnesota.
     

3. Nexus Requirement:

   • The tax applies to manufacturers with a physical presence in Minnesota.
     
   • Retailers subject to Minnesota’s sales tax laws (Chapter 297A) are also subject to this tax.
     

4. Reporting Requirements:

   • Businesses must submit monthly informational reports, even if they made no sales of PFAS products during the reporting period.
     
   • However, no tax payment is required at the time of the monthly report.

5. Tax Payments & Administration:

   • The tax must be filed and paid annually.
     
   • Standard Minnesota tax enforcement, refund, penalty, and appeal provisions apply.
     

6. Tax Credit:

   • Businesses can receive a credit for taxes paid on the same gross revenue to another jurisdiction, but only up to the amount of Minnesota’s tax liability.

7. Revenue Allocation:

   • All tax revenues, including penalties and interest, will be deposited into Minnesota's general fund.
     

The bill also establishes a cleanup account and an advisory commission related to PFAS contamination, aiming to fund environmental and health initiatives addressing PFAS pollution in Minnesota.