AI Generated Summary
Purpose
Proposes a new plastic bottle excise tax in Minnesota to raise revenue for water infrastructure. The tax would create a new tax category under Minnesota Statutes chapter 297H and apply to certain plastic beverage bottles sold in the state. The tax would sunset after December 31, 2030.
Main Provisions
Section 1 – Definitions
- Beverage: a drinkable liquid intended for human consumption, excluding drugs regulated under federal law and infant formula.
- Bottle distributor: a person who sells a taxable plastic bottle to a retailer in Minnesota, or a beverage producer who sells at retail.
- Commissioner: Minnesota the Department of Revenue.
- Taxable plastic bottle: a formed or molded container primarily of plastic resin, sealed, containing a beverage, and holding less than three liters when full.
Section 2 – Tax imposed
- An excise tax is imposed on bottle distributors.
- The tax is charged to the first distributor selling a taxable bottle to a retailer in Minnesota; with an exception: if a beverage producer sells directly at retail, the tax is imposed on the beverage producer instead.
- Tax is payable quarterly, in a form and manner prescribed by the commissioner.
Section 3 – Rate of tax
- The tax rate is ten cents per taxable plastic bottle sold.
Section 4 – Use of proceeds
- Revenue from the tax must be deposited into the water infrastructure account established in a separate section.
Section 5 – Expiration
- The tax provision expires after December 31, 2030 (sunset).
Significant changes to existing law
- Creates a new plastic bottle excise tax under Minnesota law (chapter 297H) with defined terms, collection rules, and a sunset date.
- Shifts tax liability to the first distributor or, in cases where a beverage producer sells retail, to the beverage producer.
- Directs proceeds to a water infrastructure account, tying the tax revenue to water-related infrastructure funding.
- Establishes quarterly payment requirements and a specific rate of 10 cents per bottle.
Relevant terms - plastic bottle excise tax - bottle distributor - beverage producer - taxable plastic bottle - rate of ten cents - payable quarterly - Minnesota Statutes chapter 297H - water infrastructure account - expiration 2030 - less than three liters - sealed container - beverage (excluding FDA-regulated drugs and infant formula)
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 12, 2026 | Senate | Action | Introduction and first reading | ||
| March 12, 2026 | Senate | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "Federal law cited in the beverage definition to exclude drugs regulated under the FDA Act and infant formula; this reference anchors the bill's definition of 'beverage' to federal regulation.",
"modified": []
},
"citation": "21 U.S.C. § 301 et seq.",
"subdivision": ""
}
]Progress through the legislative process
In Committee