ST. PAUL, MN – On Monday, the Minnesota House heard Rep. Wayne Johnson’s (R-Cottage Grove) House File 4, which would amend the Minnesota Constitution to require that a portion of the state's potential future budget surpluses 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.
"When I spoke with families, small business owners, and retirees across our district, a common concern was that when the state runs a surplus, that money should be returned to the people who paid it—Minnesotans," said Rep. Johnson. "That’s exactly what House File 4 aims to do."
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.
"This amendment would prevent politicians in St. Paul from using excess tax dollars as a blank check for new spending. Instead, it puts money back into the hands of those who paid it, the Minnesota taxpayers,” Johnson continued.
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.
"This is about fairness and transparency," Johnson concluded. "Minnesotans deserve a direct say in how their tax dollars are used, and this amendment not only ensures that when the state collects more than it needs, that money goes back to the people, it also allows them to directly vote on the issue.”
The bill failed after a split vote along party lines, 67-67.
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