Rep. Davids Supports Legislation Guaranteeing Budget Surplus is Returned to Taxpayers

With Minnesota’s February forecast just days away, state economists are preparing to reveal whether state taxpayers have once again overpaid. State Representative Greg Davids (R-Preston) is backing legislation that would guarantee any future budget surplus is returned directly to Minnesotans.

A Commitment to Taxpayer Refunds

“Two years ago, Democrats squandered a record $18 billion surplus and raised taxes by an additional $10 billion, and you were lucky if you received $260 in a tax rebate,” Davids said. “This legislation would let Minnesotans have a say in preventing this wasteful spending from happening again.”

Under the proposal, voters would decide whether to amend the Minnesota Constitution to ensure future budget surpluses are returned to taxpayers. The plan includes:

✅ Creation of a Minnesota Tax Relief Account – Any projected revenues exceeding 5% of projected expenditures from the last biennial budget forecast would be deposited into this account.
✅ Direct Refunds to Taxpayers – Funds in the account would be returned to Minnesotans through refunds.
✅ Tax-Free Status – Refunds will not be subject to Minnesota taxes.
✅ Exclusivity for Income & Property Taxpayers – Only those who pay income and property taxes in Minnesota will be eligible for refunds.

Taking Politics Out of Surplus Spending

“Every time there’s a surplus, the Legislature has to decide what to do with it,” Davids said. “This bill eliminates the guesswork by ensuring surplus funds go back to the overcharged taxpayers who paid them in the first place.”

Minnesotans deserve a say in how their tax dollars are managed. This proposed amendment would provide permanent tax relief and stop unnecessary government overspending.