HF1635 (Legislative Session 94 (2025-2026))
Pollution control business surcharge imposed.
Related bill: SF2288
AI Generated Summary
This bill, H.F. No. 1635, authored by Representative Lee F., proposes a pollution control surcharge on certain businesses in Minnesota. It was referred to the Committee on Environment and Natural Resources Finance and Policy.
Key Provisions:
Imposition of a Pollution Control Surcharge:
- A 5% surcharge is imposed on the net pollution control income of corporations, individuals, trusts, and estates engaged in pollution control businesses.
- "Net pollution control income" is defined based on taxable income for corporations and adjusted gross income for individuals, trusts, and estates.
- A 5% surcharge is imposed on the net pollution control income of corporations, individuals, trusts, and estates engaged in pollution control businesses.
Definition of a Pollution Control Business:
- A pollution control business is any person or entity certified by the Minnesota Pollution Control Agency (MPCA) as having at least one delinquent pollution control violation.
- A pollution control violation includes violations of Minnesota statutes and regulations related to environmental protection.
Notification and Certification Process:
- The MPCA Commissioner will notify businesses of pollution control violations and provide a timeline for remedial actions.
- If violations are remedied within the timeframe, the business is certified as compliant.
- If not, a delinquency notice is issued, and the surcharge applies for the taxable year in which the notice is received.
- By January 31 each year, the MPCA must report to the Commissioner of Revenue a list of businesses with delinquent violations from the previous year.
- The MPCA Commissioner will notify businesses of pollution control violations and provide a timeline for remedial actions.
Administration and Enforcement:
- The Minnesota Department of Revenue will administer the surcharge using the same procedures as those for income taxes, including audits, compliance checks, penalties, and interest.
Summary:
This bill aims to penalize businesses with unresolved environmental violations by imposing an additional 5% tax on their income, encouraging compliance with pollution control laws.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 26, 2025 | House | Floor | Action | Introduction and first reading, referred to | Environment and Natural Resources Finance and Policy |
| February 26, 2025 | House | Floor | Action | Introduction and first reading, referred to | Environment and Natural Resources Finance and Policy |
| March 02, 2025 | House | Floor | Action | Author added | |
| March 02, 2025 | House | Floor | Action | Author added |
Citations
[
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "The pollution control surcharge calculation references modifications for taxable income under section 290.0131.",
"modified": [
"The pollution control surcharge computation refers to modifications as outlined in these subdivisions."
]
},
"citation": "290.0131",
"subdivision": "subdivisions 8 to 10, 16 and 17"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "The pollution control surcharge calculation references subtractions for taxable income under section 290.0132.",
"modified": [
"Inclusion of specific subtractions from net pollution control income computation as outlined in these subdivisions."
]
},
"citation": "290.0132",
"subdivision": "subdivisions 9 and 27"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Additional subtraction reference in net pollution control income under section 290.0132.",
"modified": [
"Specifies the conditions under which subtractions are allowed."
]
},
"citation": "290.0132",
"subdivision": "subdivision 14"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Determination of assignable or allocable amounts to Minnesota refers to section 290.17.",
"modified": [
"Allocation rules for Minnesota taxable income."
]
},
"citation": "290.17",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Defines the term 'Person' in the context of pollution control under section 115.01.",
"modified": [
"Clarification of the term 'Person' for purposes of identifying pollution control businesses."
]
},
"citation": "115.01",
"subdivision": "subdivision 10"
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Pollution control violation references encompass sections 103F.701 to 103F.755.",
"modified": [
"Lists sections relevant to identifying violations subject to surcharge."
]
},
"citation": "103F.701 to 103F.755",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Pollution control violations include references to sections 325E.10 to 325E.1251.",
"modified": [
"Inclusion of consumer protection sections as related to pollution control."
]
},
"citation": "325E.10 to 325E.1251",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Pollution control violations also reference section 325E.32.",
"modified": [
"Additional reference for standards in pollution control infractions."
]
},
"citation": "325E.32",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Chapter 114C relates to pollution control violations.",
"modified": [
"It is included in the list of chapters defining pollution control violations."
]
},
"citation": "114C",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Chapter 115 references pollution control violations.",
"modified": [
"Listing as contributing to the framework for pollution violation assessment."
]
},
"citation": "115",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Chapter 115A in context of pollution violations.",
"modified": [
"Included in the outline of acceptable pollution control measures."
]
},
"citation": "115A",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
""
],
"summary": "Chapter 116 as part of pollution control enforcement.",
"modified": [
"Part of the set of chapters for defining compliance and penalties for infractions."
]
},
"citation": "116",
"subdivision": ""
}
]