HOUSE TAX BILL CURBS SPENDING, BLOCKS NEW TAX INCREASES
ST. PAUL – 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. State Representative Paul Torkelson (R-Hanska) supports the plan.
“With a budget deficit on the horizon, it was important for us to prioritize current spending while holding the taxpayers harmless,” Torkelson said. “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, Torkelson said 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.