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Hello from the State Capitol,
A bipartisan taxes proposal in the Minnesota House that blocks proposed tax hikes and takes initial steps to address the state’s projected budget shortfall is moving forward.
With a budget deficit on the horizon, it was important for us to prioritize current spending while holding the taxpayers harmless. This plan does just that.
In the previous legislative session, a Democrat-led legislature and Governor Walz approved $10 billion in tax increases in addition to spending a record $18 billion budget surplus. Now, just two years later, Minnesota faces a projected $6 billion deficit.
The current tax proposal would reduce state spending by $40 million in both the 2026–2027 and 2028–2029 budget cycles.
Beyond preventing new tax burdens, the bill includes several taxpayer-friendly provisions. It raises the market value exclusion for homesteads owned by disabled veterans, expands the property tax deferral program for senior homeowners, and establishes a sales tax collection credit for small and mid-sized retailers—allowing them to retain a portion of the sales tax they collect.
Have a good weekend,
Paul
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