HF 4

3rd Engrossment - 94th Legislature (2025 - 2026) Posted on 03/20/2025 04:19pm

A bill for an act
relating to taxation; proposing an amendment to the Minnesota Constitution by
adding a section to article X; requiring that a portion of a projected budget surplus
be returned to state taxpayers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin CONSTITUTIONAL AMENDMENT PROPOSED.
new text end

new text begin An amendment to the Minnesota Constitution is proposed to the people. If the amendment
is adopted, a section shall be added to article X, to read:
new text end

new text begin Sec. 9. new text end

new text begin The Minnesota tax relief fund is established in the state treasury. The purpose
of the fund is to set aside surplus tax revenue that must be returned to the taxpayers of this
state each biennium, as required by this section.
new text end

new text begin If, on the basis of a November forecast of general fund revenues and expenditures, which
shall be provided by law, there will be a positive unrestricted general fund balance at the
close of the biennium, the commissioner shall transfer from the general fund to the tax relief
fund the amount of the tax relief fund surplus, which shall be the amount, if any, by which
projected revenues exceed projected expenditures by 105 percent. Projected expenditures
shall not include any amount required by law to be set aside in a budget reserve account,
but nothing in this section shall be construed to prohibit the legislature from allocating
projected revenues that do not exceed 105 percent of projected expenditures to a budget
reserve.
new text end

new text begin Money in the tax relief fund may only be used to return the tax relief fund surplus to the
property and income taxpayers of this state through onetime refunds, which shall not be
taxable under the laws of this state, or to offset the cost to the state general fund for onetime
tax reductions. No refunds or offsets for tax reductions shall be made for any amount that
exceeds a property or income taxpayer's liability for tax, or to offset a tax reduction or
provide a refund to a taxpayer whose income exceeded $1,000,000 in the year for which
the refund was provided.
new text end

Sec. 2. new text begin SUBMISSION TO VOTERS.
new text end

new text begin The proposed amendment must be submitted to the people at the 2026 general election.
The question submitted must be:
new text end

new text begin "Shall the Minnesota Constitution be amended to create a Minnesota tax relief fund that
must be used to return projected surplus tax revenue to the income and property taxpayers
of this state for taxpayers with incomes less than $1,000,000?
new text end

	new text begin Yes . new text end
	new text begin No . new text end	new text begin " new text end