Koznick Connection: Taxes, Transportation, and More

April 2, 2026

Spring Progress Report

Happy Spring,

The Legislature is on break this week, and I hope many of you are also enjoying “spring break." It’s always a pleasure to be working back in the district and catching up with many of you in town. Here is an update on some legislative highlights as session hits the midpoint.

Minnesota's Overtaxation Problem

We often hear that Minnesota's state government is going broke. This is simply untrue. Despite the billions of dollars that have been taken from us through fraud, waste, and abuse, the State is on track to run a $3.7 billion budget surplus for the 2026-2027 fiscal year. Minnesota is far from broke, but our working families are feeling the pinch because we are overtaxed and face higher fees. In fact, Minnesota currently ranks seventh in the nation for highest overall tax burden.

My priority at the State Legislature is to bring tax relief to Minnesotans and to ensure that every dollar collected from you by the state each year is accounted for and spent responsibly on services that benefit you.

The Fix:

House Republicans have introduced the following pieces of legislation that will bring immediate financial relief to Minnesota families:

• HF3525: Creates a "no tax on tips" deduction that can total up to $25,000 per year for all filing statuses.
• HF3562: Reduces Auto Tab fees to what they were prior to being raised 23% by the DFL Trifecta. I am a co-author on this legislation.
• HF3524: Creates a qualified overtime deduction that can reach an annual total of $25,000 for married joint filers and $12,500 for other filing statuses.
• HF5: Ends state taxes on Social Security income.
• HF3127: Extends the pass-through entity tax expiration, allowing businesses to claim a higher deduction for state business income.

Passing these bills will put our state back in line with current federal tax statutes and will help to offset some of the inflationary pressure that Minnesotans have been feeling. All House Republicans are unified in support of these measures. However, it has been incredible to witness members of the House DFL justify their opposition to these bills that would make living in Minnesota more affordable.

The real reason that House DFL members oppose these reforms, which will save Minnesotans over $300 million per year, is that they want more of your money to spend on more government expansion. The Democrat Tax Chair even referred to these tax reductions as an "expensive gimmick." The only expensive gimmick is overtaxing Minnesotans to the point that many choose to leave the state, while much of the money that we do pay is squandered on fraud, waste, and abuse.

In every aspect of my work at the State Legislature, I endeavor to save you money on the front end and to spend the tax dollars that you do pay in a responsible manner.

Other bills I am advocating for provide relief in the form of lowering property taxes, which are rising rapidly and are particularly hard on seniors with fixed incomes. Through my work as Chair of the Transportation Committee, I have scrutinized and put an end to waste and inefficiencies, such as eliminating the costly and underused Northstar Commuter Line, saving taxpayers $10 million per year. I am likewise working on an initiative to consolidate the operations and administration of Twin Cities busing services, which will save Minnesota taxpayers over $90 million in the first year and $25 million per year going forward. Last week, we heard proposals to stop the proposed $3.5 billion Blue Line Extension train and a bill to reduce your auto registration fees. Both bills were widely reported on and will save billions to make your commute more affordable.

Recent Transportation Headlines:

GOP Transportation Press Conference: Car Tabs, Autonomous Vehicles, Busing

KSTP: License tab fees likely to stay high after bill fails in transportation committee

Star Tribune: Minnesota car registration fees are higher than ever

Fox 9: Waymo's Minnesota expansion: Political and legal hurdles

KSTP: Blue Line Extension to cost $57 million to operate in first year

Fox 9: GOP lawmakers liken Blue Line extension project to Rondo disruption

Star Tribune: Southwest light rail rolls toward opening as Twin Cities transit use lags

WCCO Sunday Take: Representative Jon Koznick and Senator Scott Dibble

I am fighting on your behalf to ensure that the money and taxes you pay in are spent wisely, efficiently, and on core government functions.

Unredacted Optum Report Bill Passes House

I am pleased to see that a bipartisan vote to release an unredacted version of the Optum Report recently passed the House 107–27 and will now move to the Senate. The original intent of the Optum Report was to give more information about the fraud that has occurred in our state through a third-party audit of the Medicaid system. However, as you can see from the attached picture, entire pages of the report were 100% redacted! How are lawmakers supposed to enact policy to fight fraud when we are prevented by the Department of Human Services from seeing what is going on within our state agencies?

This bill will give lawmakers access to the unredacted Optum Report, and its passage in the House is an important step forward in our fight against fraud.

May 12 Lakeville School Referendum & Elimination of the Elko New Market Polling Location!

Please join me and the Lakeville Superintendent at the April 14 community meeting to discuss the May 12 Referendum, and how it will impact our schools and your property taxes. Scott County residents need to know that I am extremely disappointed that the new school board is making it harder for you to vote by consolidating polling locations and eliminating the Elko location. VOTING IS GOING ON NOW.

This disenfranchisement shouldn’t be legal and isn’t fair! Despite these changes, please make sure to vote ASAP.

To learn more about the Growing Together Referendum, click HERE.

I am honored to serve on your behalf at the State Legislature. I hope you are able to enjoy the blessing of family this break and are renewed with the promise that Easter brings for all of us.

Representative Jon Koznick

House District 57A

/RepJonKoznick

2nd Floor Centennial Office Building
658 Cedar Street
Saint Paul, MN 55155
ph: 651.296.6926