This bill proposes the introduction 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, 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, which will be 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.

Additionally, the bill establishes guidelines for the distribution of funds from the water infrastructure account, prioritizing projects in local governments with low tax bases. Eligible projects include improvements to sanitary sewer infrastructure, water treatment facilities, and the removal of contaminants from drinking water, among others. Any unspent funds from the previous calendar year will be appropriated to the Pollution Control Agency for grants to local governments for these 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.