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Omnibus tax bill headed to governor's desk after lawmakers strike Sunday night deal

Legislators and staff burned the midnight oil Saturday as they worked to pass bills before the end of the 2026 legislative session. (Photo by Michele Jokinen)

While it’s customary that each chamber of the Legislature fashions its own tax bill, then hammers out compromises between the provisions of each, 2026 was a year in which the Senate produced such a bill, but the House didn’t.

That said, the two tax committees did meet twice as a “discussion group” moderated by Revenue Commissioner Paul Marquart, then headed behind closed doors in recent days, finally emerging with an agreement Sunday evening.

And the result is HF2438, which subbed out a 2025 transportation bill sponsored by Rep. Jon Koznick (R-Lakeville) with a delete-all amendment. It was subsequently passed 126-8 by the House and 52-15 by the Senate, and sent to the governor.

As expected since an agreement between Gov. Tim Walz and legislative leaders was announced Wednesday, the bill includes a onetime increase in homestead credit refunds to 14.88%. That will cost the state’s General Fund $125 million.


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