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Minnesota Republicans propose tax cuts using budget surpluses, including caps on property taxes and eliminating state taxes on tips and overtime.
Minnesota Senate Republicans introduced a tax relief package on March 2, 2026, proposing property tax caps tied to inflation and population growth, elimination of state taxes on tips and overtime, and reduced vehicle license fees.
The measures come amid a $3.7 billion budget surplus for 2026-27 and a projected $377 million surplus for 2028-29, reversing a prior $6 billion deficit.
Republicans argue the fiscal strength allows for cuts without harming services, citing potential savings from Medicaid reforms.
The no-tax-on-tips and overtime plan could cost $391 million in its first year, raising funding questions.
Speaker Lisa Demuth expressed interest in federal tax conformity, while DFL leaders said they will assess impacts on income groups.
Bipartisan support remains uncertain.
Los republicanos de Minnesota proponen recortes de impuestos utilizando los excedentes presupuestarios, incluidos límites a los impuestos a la propiedad y la eliminación de los impuestos estatales a las propinas y horas extras.