Return Budget Surpluses to Taxpayers

Minnesota Voters Could Decide the Fate of Future Surpluses

ST. PAUL – State economists are set to reveal whether Minnesota has another budget surplus, and under legislation supported by State Representative Paul Torkelson (R-Hanska), voters may soon have the power to determine what happens to that money.

Giving Surplus Funds Back to Taxpayers

“Two years ago, many Minnesotans were expecting permanent and significant tax relief when they heard Minnesota had a nearly $20 billion budget surplus,” said Rep. Torkelson. “They were disappointed when the Democrat trifecta wasted it. This bill could prevent that from happening again.”

Under the proposed legislation, Minnesota voters would decide whether to amend the state Constitution to ensure future budget surpluses are returned directly to taxpayers. If approved, the plan would establish a Minnesota Tax Relief Account, which would automatically refund excess revenue.

How the Tax Relief Account Works

Any projected revenues exceeding 5% of projected expenditures (based on the most recent biennial budget forecast) would be allocated to the tax relief account.
Funds in the account would be returned to taxpayers via refunds.
No taxation on refunds: These funds would not be considered taxable income under Minnesota law.
The Legislature cannot use the funds to offset the cost of tax reductions elsewhere.
Refunds would be exclusively for income and property taxpayers in Minnesota.

A Choice for Minnesotans

“This bill lets people decide if excess funds should be returned to them during times of surplus, or if the Legislature should continue divvying up the revenue as it sees fit,” Torkelson concluded.

Stay informed on this legislation and other tax relief efforts by following Rep. Paul Torkelson’s updates.