The proposed bill establishes a plastic bottle excise tax in Minnesota, codified under chapter 297H of the Minnesota Statutes. The tax will be imposed on bottle distributors, specifically targeting the first distributor who sells a taxable plastic bottle to a retailer in the state, with a tax rate set at ten cents per bottle. The bill defines key terms such as "beverage," "bottle distributor," and "taxable plastic bottle," and outlines the tax's payment schedule as quarterly. The proceeds from this tax will be deposited into a newly established water infrastructure account, which is intended to fund various water-related projects, including sanitary sewer infrastructure and drinking water system improvements.

Additionally, the bill outlines the distribution of funds from the water infrastructure account, prioritizing projects in local governments with low tax bases. It specifies that any unspent funds collected in the previous calendar year will be appropriated to the Pollution Control Agency for grants to local governments for eligible projects. The provisions of this bill will take effect for sales on or after January 1, 2026, and the tax and associated funding mechanisms will expire after December 31, 2030, or once the funds collected prior to January 1, 2031, have been distributed.