House Hears HF4, Constitutional Amendment to Return Surplus Money to Taxpayers St. Paul, MN —Today, Rep. Knudsen (R-Lake Shore) 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 the government runs a surplus, it means taxpayers have overpaid. Returning that money puts it back where it belongs, in the hands of families, workers, and small businesses. It fuels growth and financial security," said Rep. Knudsen. "Rather than being wasted by the government, those dollars can help people cover rising costs, invest in their futures, and strengthen 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. |