House Hears HF4, A Constitutional Amendment to Return Budget Surplus to Taxpayers
St. Paul, MN — Yesterday evening, Rep. Igo (R-Wabana 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 provided them in the first place just makes sense. Government spending has grown too much, and higher taxes have put an unnecessary strain on families across our state," said Rep. Spencer Igo. "When there’s a surplus, it's only fair that we explore ways to return those funds to the people who earned them. Putting money back in the hands of hardworking Minnesotans will help strengthen our communities and support local economies."
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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