Purpose of the Bill

The bill aims to propose a constitutional amendment in Minnesota that requires a portion of any projected budget surplus to be returned to the taxpayers. This is intended to ensure that excess tax collections are either refunded to the state's residents or used to reduce state taxes.

Main Provisions

• Tax Relief Account: The amendment would create the "Minnesota Tax Relief Account" in the state treasury.
• Funding for Refunds or Rebates: Money in this account must be used to provide refunds or rebates to taxpayers, and these would not be taxable.
• Excess Revenue Utilization: Any general fund revenues exceeding 105% of projected expenditures in the state’s biennial budget would be deposited into this account.
• Voter Approval: The amendment will be presented to Minnesota voters during the 2026 general election for approval.

Significant Changes

• If approved, this amendment to the Minnesota Constitution would legally bind the state to return significant budget surpluses to taxpayers, either directly or through tax reductions.
• It introduces a mechanism where only revenues exceeding 105% of expenditures, as forecasted, are targeted for redistribution.

Relevant Terms

• Minnesota Tax Relief Account
• Budget surplus
• Taxpayer refunds or rebates
• Constitutional amendment
• General fund revenues