House Republicans propose $1 billion property tax cut as part of ‘North Star Comeback’ budget

Republicans want to pass the largest tax cut in Minnesota history.

Ringing in at $3.8 billion in reductions, House Speaker Lisa Demuth (R-Cold Spring) and caucus leaders announced their budget plan Thursday. Dubbed the “North Star Comeback,” it is aimed at protecting family budgets, making government work and building the state’s economy.

“Right now, Minnesotans are feeling squeezed from every direction — groceries, child care, housing, insurance, energy,” Demuth said. “When you think about it, it’s the basics and they’re just getting more expensive. Families are actually working harder but they’re falling further behind.”

The plan includes $1 billion for one-time property tax relief, an end to taxes on tips and overtime, efforts to lower child care costs, the elimination of car tab fees and hundreds of millions of dollars funneled into schools through scholarship granting organizations.

Republicans also want to prioritize an investment in modernized IT systems for public services administered through counties, fund fraud prevention and compliance with President Donald Trump’s HR1, better known as the “Big Beautiful Bill.”

“Many of these proposals have bipartisan support already and can pass this year. We’re ready to get to work and we’re calling on our Democrat colleagues to work with us to deliver these solutions to Minnesotans,” Demuth said.

House Republican Floor Leader Harry Niska (R-Ramsey) said funding would come from state projects he believes are unlikely to come to fruition like the Blue Line extension and the proposed Northern Lights Express train between the Twin Cities and Duluth. The state would also be eligible for federal matches to fund IT upgrades.

Republicans pointed to the 2022 state budget as the reason Minnesotans are feeling financial strain.

“We’re giving $1 billion back to Minnesotans to soften the blow of property tax hikes that were the result of the DFL trifecta in 2022,” Niska said.