Plain English Breakdown
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SF4439 • 2026
Plastic bottle excise tax proposal
Plastic bottle excise tax proposal
Taxes
Passed Legislature
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Bill History
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2026-03-12
House
Introduction and first reading
Official Summary Text
Plastic bottle excise tax proposal
Current Bill Text
Read the full stored bill text
A bill for an act relating to taxation; proposing a plastic bottle excise tax; proposing coding for new law in Minnesota Statutes, chapter 297H. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. new text begin [297H.50] PLASTIC BOTTLES EXCISE TAX. new text end new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For the purposes of this section, the following terms have the meanings given. new text end new text begin (b) "Beverage" means a drinkable liquid intended for human oral consumption, excluding: new text end new text begin (1) a drug regulated under the federal Food, Drug, and Cosmetic Act, United States Code, title 21, section 301 et seq.; or new text end new text begin (2) infant formula. new text end new text begin (c) "Bottle distributor" means: new text end new text begin (1) a person who sells a taxable plastic bottle to a retailer in Minnesota; or new text end new text begin (2) a beverage producer who engaged in retail sales. new text end new text begin (d) "Commissioner" means the commissioner of revenue. new text end new text begin (e) "Taxable plastic bottle" means a formed or molded container composed primarily of plastic resin that: new text end new text begin (1) is sealed; new text end new text begin (2) contains a beverage; and new text end new text begin (3) holds less than three liters when full. new text end new text begin Subd. 2. new text end new text begin Tax imposed. new text end new text begin An excise tax is imposed on bottle distributors. The tax is imposed on the first distributor who sells a taxable bottle to a retailer in Minnesota, except, in the case of a beverage producer who engaged in retail sales, the tax is imposed on the beverage producer. The tax is payable quarterly and in the form and manner prescribed by the commissioner. new text end new text begin Subd. 3. new text end new text begin Rate of tax. new text end new text begin The excise tax is imposed at a rate of ten cents per taxable plastic bottle sold. new text end new text begin Subd. 4. new text end new text begin Use of proceeds. new text end new text begin The commissioner must deposit proceeds from the tax in the water infrastructure account established in section 297H.51. new text end new text begin Subd. 5. new text end new text begin Expiration. new text end new text begin This section expires after December 31, 2030. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales on or after January 1, 2026. new text end Sec. 2. new text begin [297H.51] BOTTLE TAX REVENUE DISTRIBUTIONS FOR WATER INFRASTRUCTURE. new text end new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For the purposes of this section, the following terms have the meanings given. new text end new text begin (b) "Adjusted net tax capacity" means the local government's adjusted net tax capacity under section 273.1325. new text end new text begin (c) "Local government" means a county, statutory or home rule charter city, or township, located in Minnesota. new text end new text begin (d) "Population" means the population estimated by the federal census, a special census conducted under contract with the United States Bureau of the Census, or a population estimate of the state demographer made pursuant to section 4A.02, whichever is most recent. new text end new text begin (e) "Tax base per capita" means a local government's adjusted net tax capacity divided by the local government's population. new text end new text begin Subd. 2. new text end new text begin Account established. new text end new text begin The water infrastructure account is established in the special revenue fund. Money in the account must be distributed in accordance with this section. new text end new text begin Subd. 3. new text end new text begin Project prioritization. new text end new text begin Money from the water infrastructure account established under this section must be used to provide funding for eligible projects described in this subdivision. Funding must include paying for all or a portion of costs required to predesign, design, engineer, construct, equip, or furnish an eligible project. In determining which eligible projects receive funding, eligible projects in the jurisdictions of local governments with low tax base per capita must be prioritized. Eligible projects include capital projects related to: new text end new text begin (1) sanitary sewer infrastructure; new text end new text begin (2) water treatment facilities; new text end new text begin (3) wastewater facilities; new text end new text begin (4) the removal of perfluoroalkyl and polyfluoroalkyl substances, nitrates, or other contaminants from drinking water; new text end new text begin (5) the construction of water towers; new text end new text begin (6) drinking water system infrastructure; new text end new text begin (7) improvements to and replacements of a water distribution system; and new text end new text begin (8) storm sewer system infrastructure. new text end new text begin Subd. 4. new text end new text begin Unspent money. new text end new text begin Any money collected in the prior calendar year and deposited in the water infrastructure account that is not otherwise appropriated or transferred before July 1 of each year is appropriated to the Pollution Control Agency. The agency must use this money for grants to local governments for projects described in subdivision 3. new text end new text begin Subd. 5. new text end new text begin Expiration. new text end new text begin This section expires after money in the water infrastructure account collected prior to January 1, 2031, has been distributed. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning January 1, 2026. new text end