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flag Minnesota Republicans propose tax cuts using budget surpluses, including caps on property taxes and eliminating state taxes on tips and overtime.

flag 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. flag 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. flag Republicans argue the fiscal strength allows for cuts without harming services, citing potential savings from Medicaid reforms. flag The no-tax-on-tips and overtime plan could cost $391 million in its first year, raising funding questions. flag Speaker Lisa Demuth expressed interest in federal tax conformity, while DFL leaders said they will assess impacts on income groups. flag Bipartisan support remains uncertain.

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