Senate Republicans today released several bills to provide tax relief that will make a difference in the lives of Minnesotans. The bills propose targeted changes for broad relief for workers, homeowners, and drivers across the state.

“In our house, the extra money from these kinds of tax savings would go a long way with the grocery list that seems to grow with my three boys and the clothes that sure as heck don’t,” said Senator Julia Coleman (R–Waconia). “I know a lot of families across Minnesota are in the same boat and could use that breathing room too. We have to ask ourselves, are we going to focus on practical help for Minnesotans? That's what these bills are about.” 

The first bill addresses the astronomical rise of property taxes last year, totaling as much as a billion dollars all together. To address the sticker shock, Senator Michael Kreun (R- Blaine) is proposing to cap property taxes at the rate of inflation, plus 50% of population growth for cities over 2,500 residents. Rates could be increased over the cap but only if they are approved at the ballot box.

This summer, Minnesotans were shocked to see some license tab fees remain stubbornly high, costing drivers thousands of dollars. In 2023, Democrats not only increased the base tab rate, but also slowed the rate of depreciation, resulting in higher tab fees year over year. Senator John Jasinski (R–Faribault) proposed a bill to undo these changes and save drivers more than $800 over five years.

Whenever the federal government makes changes to the tax code, state lawmakers consider “conformity” to adopt the changes as well. Senator Karin Housley (R–Stillwater) has two bills with conformity changes to end taxes on tips and overtime for workers. There is a maximum deduction on tips of $25,000 for overtime, and a maximum deduction of $12,500. Both deductions phase out once income hits $150,000 for single-filers, and $300,000 for married-joint filers.

The bills proposed at the press conference serve as the foundation for tax relief that makes a difference. Making the state more affordable, with more money in people’s paychecks, reducing vehicle costs, and stabilizing property taxes will encourage economic growth and prosperity across the state.