HF4 Heard on the House Floor, A Constitutional Amendment to Return Budget Surplus to Taxpayers
Saint Paul, MN - Today, Rep. Franson (R-Alexandria) 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.
"When you go to the grocery store and pay with cash, you expect to get your change back. When you pay taxes and the government doesn't need it all, you should have confidence that you will get the extra money back," Rep. Franson said. "With the additional pressures on family budgets, the least we can do is give extra taxpayer dollars back to those that that worked so hard to earn it."
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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