SF2288

SF2288 (Legislative Session 94 (2025-2026))

Certain businesses pollution control surcharge provision

Related bill: HF1635

AI Generated Summary

This bill, S.F. No. 2288, proposes a pollution control surcharge on certain businesses in Minnesota that have been found to be in violation of pollution control laws.

Key Provisions:

Definition of Pollution Control Business:
- A business is classified as a pollution control business if the Minnesota Pollution Control Agency (MPCA) certifies it as having at least one delinquent pollution control violation.
- A pollution control violation refers to any breach of Minnesota's environmental laws and regulations, including unauthorized pollution or failure to comply with remediation orders.
Surcharge Imposed:
- A 5% surcharge is imposed on the net pollution control income of:
  - Corporations (including unitary corporations) conducting pollution control-related businesses.
  - Individuals, estates, or trusts receiving income from such businesses.
- This surcharge is in addition to the existing state income and corporate franchise taxes.
Notification and Compliance:
- The MPCA Commissioner must notify businesses and individuals when they have committed a pollution control violation.
- The notification will include remedial actions that must be taken within a set timeframe.
- If the business fails to complete the remedial actions, they will receive a delinquency notice, and the surcharge will apply for that taxable year.
- By January 31st each year, the MPCA must provide the Minnesota Department of Revenue with a list of businesses that received delinquency notices the previous year.
Enforcement and Administration:
- The surcharge is subject to the same administrative provisions as state income and corporate franchise taxes, including audits, enforcement, filing requirements, penalties, interest, and limitations.

Purpose:

This bill aims to financially penalize businesses that violate pollution control laws and incentivize them to comply with environmental regulations by imposing a tax surcharge on their income related to pollution activities.

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Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 09, 2025	House	Floor	Action	Introduction and first reading
March 09, 2025	Senate	Floor	Action	Introduction and first reading
March 09, 2025	House	Floor	Action	Referred to	Taxes
March 09, 2025	Senate	Floor	Action	Referred to	Taxes

Citations

[
  {
    "analysis": {
      "added": [
        "Clarification on additions for determining net pollution control income."
      ],
      "removed": [],
      "summary": "This bill refers to modifications in determining net pollution control income by incorporating additions under section 290.0131.",
      "modified": []
    },
    "citation": "290.0131",
    "subdivision": "subdivisions 8 to 10, 16 and 17"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill discusses subtractions from tax calculations related to pollution control under section 290.0132.",
      "modified": [
        "Requires alignment with pollution control income assignable to Minnesota under section 290.17."
      ]
    },
    "citation": "290.0132",
    "subdivision": "subdivisions 9 and 27"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill involves directions for income assignment to Minnesota, relevant for net pollution control income.",
      "modified": [
        "Clarifies assignment of pollution control income to Minnesota."
      ]
    },
    "citation": "290.17",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Introduces a 5% surcharge for pollution control violations."
      ],
      "removed": [],
      "summary": "The bill imposes additional pollution control surcharges in addition to taxes under section 290.06.",
      "modified": [
        "Incorporates surcharge requirement alongside existing tax obligations."
      ]
    },
    "citation": "290.06",
    "subdivision": "subdivisions 1 and 2c"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines 'Person' for purposes of pollution control businesses under section 115.01.",
      "modified": [
        "Defines entities as 'Persons' subject to pollution control certification requirements."
      ]
    },
    "citation": "115.01",
    "subdivision": "subdivision 10"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced in defining 'pollution control violation'.",
      "modified": [
        "Identifies violations related to pollution for surcharge applicability."
      ]
    },
    "citation": "103F.701",
    "subdivision": ""
  },
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      "summary": "Referenced in defining 'pollution control violation'.",
      "modified": [
        "Identifies violations related to pollution for surcharge applicability."
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    },
    "citation": "103F.755",
    "subdivision": ""
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    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced in defining 'pollution control violation'.",
      "modified": [
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    },
    "citation": "325E.10",
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  },
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    "analysis": {
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      "summary": "Referenced in defining 'pollution control violation'.",
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    },
    "citation": "325E.1251",
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  },
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    "analysis": {
      "added": [],
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      "modified": [
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    },
    "citation": "325E.32",
    "subdivision": ""
  },
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    "analysis": {
      "added": [],
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      "summary": "Referenced in defining 'pollution control violation'.",
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        "Identifies violations related to pollution for surcharge applicability."
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    },
    "citation": "114C",
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  },
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    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced in defining 'pollution control violation'.",
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        "Identifies violations related to pollution for surcharge applicability."
      ]
    },
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  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced in defining 'pollution control violation'.",
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        "Identifies violations related to pollution for surcharge applicability."
      ]
    },
    "citation": "115A",
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  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced in defining 'pollution control violation'.",
      "modified": [
        "Identifies violations related to pollution for surcharge applicability."
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    },
    "citation": "116",
    "subdivision": ""
  }
]