House Hears HF4, Constitutional Amendment to Return Surplus to Taxpayers
Saint Paul, MN – Today, Rep. Warwas (R-Clinton Township) 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.
"Returning excess funds to the taxpayers who supplied the money in the first place is a no-brainer. Government spending has grown too much, and increasing taxes has placed an unnecessary burden on families across the state," said Rep. Warwas. "Taxpayers know how to spend their money better than the government does, so we ought to give it back in the event of a surplus."
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.
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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