House Hears HF4, A Constitutional Amendment to Return Budget Surplus to Taxpayers
St. Paul, MN — Yesterday evening, Rep. Keith Allen (R-Kenyon) and the Minnesota House heard House File 4, which would amend the Minnesota Constitution to require that a portion of the state's projected budget surplus be returned directly to taxpayers. The bill establishes the Minnesota Tax Relief Fund, ensuring that excess tax revenue is set aside and returned to the Minnesotans who paid it.
"Minnesota families are struggling with rising costs, and the government should not be sitting on billions of their hard-earned dollars, HF4 is a common-sense solution that puts money back where it belongs-in the pockets of taxpayers."
Under the proposed constitutional amendment, if a November budget forecast projects that state revenues will exceed expenditures by more than 105%, the surplus would be transferred into the Tax Relief Fund. These funds could only be used for one-time tax refunds or temporary tax reductions, ensuring that surplus dollars go back to Minnesota's income and property taxpayers rather than being absorbed into new government spending.
"Families know how to spend their money better than the government does," Rep. Allen added. "Returning the surplus is the right thing to do, and HF4 would help us give Minnesotans the relief that they deserve."
The proposed amendment would appear on the 2026 general election ballot, giving voters the opportunity to decide whether future budget surpluses should be automatically refunded.
The bill failed after a split vote along party lines, 67-67.
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