ST. PAUL – Minnesota’s February forecast is just days away, and state economists will soon announce whether too much money has once again been taken from state taxpayers by their government.
State Representative Marj Fogelman (R-Fulda) says current law allows the Legislature to dictate how surplus funds should be utilized, but she is authoring a bill this session that would give voters the final call.
“I believe over-collected taxpayer money should always be returned to the taxpayers,” Fogelman said. “I also believe most Minnesotans agree that government shouldn’t be spending money that rightfully belongs to taxpayers, and this bill would prevent future budget surpluses from being wasted.”
Fogelman noted that two years ago, Governor Walz and legislative Democrat-leadership squandered a record $18 billion surplus and then raised taxes by an additional $10 billion. She said many residents were expecting permanent and significant tax relief, but once Democrat leadership blew through the surplus, Minnesotans were lucky if they received a one-time check of $260, which was then subject to state taxation.
Fogelman said the plan would ask voters whether to amend the Constitution to guarantee future budget surpluses are returned to the taxpayers. If approved, a Minnesota tax relief account would be established. Any projected revenues that go over 5% of projected expenditures according to the last biennial budget forecast will be used to fund the account and those revenues would be returned to the taxpayers via refunds.
Fogelman added the funds deposited in the account will not be taxable under Minnesota law, nor can they be used to offset the cost to the state general fund for any tax reductions made by the Legislature. Only income and property taxpayers in Minnesota would be eligible for a refund.
“If this bill is approved and voters are allowed to have their say, Minnesotans can decide whether a surplus should automatically be returned to the taxpayers, or to continue letting lawmakers decide how much of it they should spend,” Fogelman concluded.