This bill proposes the establishment of a plastic bottle excise tax in Minnesota, codified under a new section in the Minnesota Statutes, chapter 297H. 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, or the beverage producer if they engage in retail sales. The excise tax is set at ten cents per taxable plastic bottle sold and is payable quarterly. The proceeds from this tax will be deposited into a newly created water infrastructure account, which is intended to fund various water-related projects, including sanitary sewer infrastructure, water treatment facilities, and the removal of contaminants from drinking water.

Additionally, the bill outlines the establishment of the water infrastructure account within the special revenue fund, detailing how the funds will be prioritized for projects in local governments with low tax bases. Unspent funds from 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 sections will expire after December 31, 2030, or once the funds collected prior to January 1, 2031, have been distributed.