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SF 5081

Plastic bottle excise tax proposal to fund water infrastructure projects

2025-2026 Regular Session Introduced by Amanda Hemmingsen-Jaeger

Minnesota bill proposes excise tax on plastic bottles to fund water infrastructure while addressing single-use plastic consumption.

Referred to Taxes
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Bill Summary · SF 5081

Legislative bill overview

SF 5081 proposes implementing an excise tax on plastic bottles in Minnesota, with revenue directed toward water infrastructure projects. The bill was introduced in April 2026 and is currently under review by the Taxes committee. Specific tax rates and exemptions have not been detailed in available records.

Why is this important

Plastic bottle taxes represent an emerging policy tool aimed at reducing single-use plastic consumption while generating dedicated funding for critical infrastructure. Water infrastructure projects—including treatment facilities, pipe replacement, and contamination remediation—typically face significant funding gaps across states, making alternative revenue sources politically significant.

Potential points of contention

  • Regressive impact: Excise taxes on consumer goods disproportionately burden lower-income households that spend a higher percentage of income on beverages, raising equity concerns
  • Economic competitiveness: Businesses in Minnesota may face cost disadvantages compared to neighboring states without similar taxes, potentially affecting beverage distributors and retailers
  • Revenue predictability: Excise tax revenue depends on consumption patterns; if the tax succeeds in reducing plastic bottle use (its environmental goal), it may undermine long-term funding reliability for infrastructure projects
  • Definition and scope: Unclear whether the tax applies to all plastic bottles, specific sizes, or beverages, affecting which industries and consumers bear the burden

Compiled from official sources — confirm details with the bill’s official record.

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