Dear Neighbor,
Greetings from St. Paul, where House Republicans continue working to pass bills that would ease the financial burden on Minnesota families and businesses … only to have House Democrats block those efforts. Here’s the latest:
House Republicans propose $4 billion in tax relief
House Republicans recently unveiled a “North Star Comeback” package of bills that, together, would provide nearly $4 billion in tax relief. That’s a state record for one session and a dramatic turnaround from the last two-year cycle when the former Democrat trifecta spent the $18 billion budget surplus, raised taxes by $10 billion, and increased state spending by 40 percent
The plan delivers $1 billion in one-time property tax relief, eliminates taxes on tips and overtime, and reduces car tab fees. It also lowers childcare costs and provides hundreds of millions of dollars into education at no cost to taxpayers through scholarship-granting organizations
Overall, the package is built around three main components: protecting family budgets, making government work for Minnesotans, and building a world-class economy where businesses can survive and thrive. These proposals reflect what legislators are hearing across the state as families, businesses and local governments feel the pinch in today’s economy.
House Democrats blocking $4 billion in tax relief
Many of the proposals in the North Star Comeback are common-sense policies that Minnesotans broadly support. For example, several measures aimed at improving government are included, such as modernizing county-administered public service IT systems and dedicating additional funding for fraud prevention. The proposal also expands safe schools funding so that every student can learn in a secure environment.
House Republicans have made efforts to advance some of these components only to have House Democrats block them. They even stopped legislation (H.F. 3127) that would provide a combined $2.05 billion in tax relief for 66,000 businesses in Minnesota – at no cost to the state – by simply conforming to federal tax code.
Then, Democrats in a Taxes Committee meeting blocked a House Republican proposal to provide $1 billion in property tax relief to Minnesotans at a time rates are soaring partly due to costly, unfunded mandates the former Democrat trifecta forced onto local governments.
It makes sense to use our current, short-term, $3.7 billion surplus to provide a one-time rebate to Minnesotans – especially seniors on fixed incomes – who are being taxed out of homes that they have already paid for and have lived in for decades.
Minnesotans already were suffering an excessive tax burden. Then it became more even more expensive to live and work in the state after the last two-year cycle. Unfunded mandates passed by the former trifecta that force the cost of social programs such as Paid Family and Medical Leave onto local governments have only made things worse.
Most Minnesotans believe that their property taxes are going towards funding local infrastructure, like schools and roads. In reality, much of the recent property tax hikes that they have been enduring are due to Democrats forcing the high cost of social programs, such as Paid Family and Medical Leave, on local governments.
State spending has increased by nearly 50 percent in the last decade alone, compared with population growth of just 6 percent. This is simply unsustainable and it’s time to reverse these high costs and work to provide Minnesotans with some breathing room.
Energy affordability
Another top priority for House Republicans this session is to help reduce energy costs for Minnesotans after the former trifecta passed its Blackout Bill in 2024, making power more unaffordable and unreliable. The Center of the American Experiment estimated the Democrat plan to move to 100 percent carbon free electricity by 2040 will cost $313 billion, or nearly $3,900 per family per year.
I introduced legislation (H.F. 4308) that would provide Minnesota ratepayers with $3.6 billion in relief on their energy bills over the next 10 years. This bill makes energy more affordable for Minnesotans by repealing mandates that drive up costs paid by consumers, such as:
- Eliminating a requirement that Xcel Energy pay for nuclear waste storage, sparing ratepayers a $10.5 million annually.
- Exempting natural gas and electric power from state general taxes to reduce utility bills. This saves consumers an estimated $206.8 million in FY2028-29.
- Reducing property taxes for commercial-industrial property while also preventing taxes from being increased on other industries to save energy costs. This provides ratepayers with around $90 million in annual relief.
- Providing flexibility to utilities by exempting all but Xcel Energy from participating in the Distributed Solar Energy Standard.
This is a good bill but, unfortunately, House Democrats refused to move it through a preliminary committee hearing so it’s on hold. In our tied House, we just need one Democrat to see the light, put partisanship aside and get on board with doing what’s best for the people of our state. With just 30 days until this session is set to adjourn, we are running out of time for that to happen.
Sincerely,
Chris