House Hears HF4, Constitutional Amendment to Return Budget Surplus to Taxpayers
St. Paul, MN — Today, Rep. Kresha (R-Little Falls) 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.
"Families in our district and across the state have expressed concerns about the increasing strain on their budgets, which I hear about at the doors and in other conversations," said Rep. Kresha. "We can alleviate that burden by returning our state's surplus to the people who paid it in the first place. That money is more beneficial to taxpayers when it is in their hands rather than in the government's.
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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