This bill proposes the establishment of a plastic bottle excise tax in Minnesota, aimed at funding water infrastructure projects. Under the new section 297H.50, an excise tax will be imposed on bottle distributors for each taxable plastic bottle sold to retailers, with the tax payable quarterly. The bill defines key terms such as "beverage," "bottle distributor," and "taxable plastic bottle," and specifies that the tax rate will be determined. Proceeds from this tax will be deposited into a newly established water infrastructure account, as outlined in section 297H.51, which will be managed by the Public Facilities Authority.

The water infrastructure account will consist of funds from the excise tax, as well as other sources, and will be appropriated for specific water infrastructure projects approved by the board. The bill also includes provisions for the expiration of both the tax and the account, with the tax set to expire on December 31, 2031, and the account to expire once all revenues have been distributed in grants by January 1, 2032. The effective date for both sections is January 1, 2027.