Purpose of the Bill

The bill aims to impose an excise tax on plastic bottles in Minnesota to generate revenue for water infrastructure improvements.

Main Provisions

• Definitions: The bill defines terms such as "beverage," "bottle distributor," and "taxable plastic bottle." Notably, it excludes drugs regulated under the federal Food, Drug, and Cosmetic Act and infant formula from the definition of "beverage."

• Excise Tax: An excise tax of ten cents per plastic bottle is imposed on bottle distributors. This tax applies to bottles that are primarily made of plastic, sealed, contain a beverage, and hold less than three liters.

• Application of Tax: The tax is imposed on the first distributor to sell the bottle to a retailer, or directly on beverage producers who engage in retail sales. The tax is collected quarterly.

Use of Tax Proceeds

• The revenue generated from the tax will be directed to the water infrastructure account, as detailed in another section of the Minnesota Statutes.

Expiration

• This excise tax is set to expire on December 31, 2030.

Significant Changes

• Implementing a specific excise tax on a common consumer item like plastic bottles represents a new revenue mechanism aimed at supporting environmental infrastructure projects in Minnesota.

Relevant Terms

plastic bottles, excise tax, bottle distributor, water infrastructure, beverage producer, retail sales, Minnesota, environmental tax, revenue, expiration date, consumer goods.